Meta’s ad revenue grew 26% in the latest quarter. Google’s search revenue grew 12% in the same period. The 14-point gap is the widest since 2021. Meta’s AI tools now drive more conversions and higher ad spend for users. Almost 10 million advertisers used at least one Meta AI tool. Google’s search faces competition from chatbots like ChatGPT and Claude. AI Overviews in Google Search reduce clicks on traditional links. Alphabet’s stock dropped 12% after its earnings miss. Meta’s stock fell 14% in October. Both companies are spending heavily on AI infrastructure. Google’s cloud division grew over 100% to $31 billion. Meta still relies on ads for 98% of its revenue.
What changed
Meta ad revenue fell in 2022 after Apple's iOS privacy change.
What it unlocks
Advertisers can use Meta AI tools to build campaigns and improve ad performance.
- Meta ad revenue +26% to $63.1B
- Google search revenue +12% to $63.4B
- 14-point growth gap
- Alphabet market cap -$500B
Sources