Social media giants lose users, advertisement revenue globally
Social media giants have started to see a slow pace of growth in subscribers’ addition and falling advertisement revenue in recent quarters.
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Bengaluru, 30 July Social media giants have started to see a slow pace of growth in subscribers' addition and falling advertisement revenue in recent quarters.
In April-June quarter, many of these social media platforms reported weak earnings. Twitter, which is in news about the flip flop of Elon Musk in acquiring the firm, posted loss in the second quarter. Similarly, Google reported a weak set of numbers owing to YouTube's slow growth. YouTube's advertisement revenue for the June quarter came at $7.3 billion.
Similarly, Meta- previously Facebook, posted its first ever decline in revenue since the company went public. The company saw its profits falling over a third during the second quarter of 2022. Advertisement revenue has of the company dropped owing to intense competition from TikTok.
Globally, social media companies are facing drop in advertisement revenue as users show signs of fatigue in their usage. Moreover, most of these firms are facing intense regulatory scrutiny in various geographies.
Economic uncertainty is also one of the major reasons for drop in advertisement revenue. Amid Russia-Ukraine war and recessionary fears in the US, enterprise clients are not keen to expand their marketing spend.
"This outlook (for third quarter) reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty," social media giant Meta said during its earnings call.
India is one of the key markets for most social media giants except TikTok, which was banned by the country.
Currently, central government is in the process of bringing amendment to IT laws that will mandate strict government scrutiny of top social media platforms over hosting illegal and inflammatory user content. Once approved, this will also give power to the government to overturn decisions of the social media platforms regarding suspension, blockage and removal of accounts.
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