YouTube's huge miss shows digital media ad market is getting hit hard – CNBC

Silhouettes of laptop and mobile device users are seen next to a screen projection of the YouTube logo.Dado Ruvic | ReutersDuring the pandemic, YouTube was one of Alphabet’s prime growth engines as more people were glued to their screens while stuck at home. The video site continued its rapid expansion last year as the economy reopened and ad spending soared. At least for one quarter, the music has stopped.Ahead of its first-quarter earnings report on Tuesday, Alphabet was expected to report growth at YouTube of 25%. That number came in way short at 14%, contributing to a broader revenue and earnings miss and a steep drop in Alphabet’s stock. YouTube’s numbers are the latest sign that the digital media ad market is getting hit hard in an inflationary environment and amid rising concerns about deteriorating macroeconomic conditions. Last week, Snap CEO Evan Spiegel said the first quarter was “challenging” for the YouTube competitor, and the company provided a weak sales forecast for the second quarter. For both YouTube and Snap, there’s a growing juggernaut taking market share: TikTok. Meanwhile, other media companies large and small are rolling out video and streaming services that are competing for consumer eyeballs.Add it up…
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