1️⃣ Google's Eastern Gale 🌬️
Alphabet, the colossus of digital advertising, reported an 11% revenue surge to $53.5B in Q4, narrowly missing projections. Yet, the whispers from the dragon's cave hint at China's stealthy $12B annual input, over 5% of Google's vast ad kingdom. With Google Network ads diminishing, the dragon's bounty grows ever more vital.
2️⃣ Amazon's Scales of Prosperity 🐉
Amazon's ad revenues ascended to $14.65B in Q4 2023, marking a 26% climb, crowning it the empire's jewel. Focused on streaming and connected realms, Amazon has attracted a hoard of ad spend. The dragon's pact with Chinese firms, adding $9.4B or 20% to its ad coffers in 2023, highlights China's crucial role in Amazon's ad realm expansion.
3️⃣ Meta's Eastern Elixir 🍵
Meta's ad revenue soared by 24% to $38.7B in last quarter, outstripping forecasts, partly fueled by China's influence. With 10% of Facebook/Instagram ads rooted in China, amounting to $13B in 2023, the reliance on Eastern alchemy is manifest. Meta's growth now dances on the strings of Chinese advertisers' global ambitions.
4️⃣ China's Global Dominion 🌏
The formidable wave of Chinese online titans like Temu and Shein is transforming the ad terrain, escalating costs and rivalry. As Chinese commerce and gaming ventures extend their reach question remains what will happen if they stop advertising and fail? Last week I wrote about Temu and that its tactics are unsustainable. In a quick LinkedIn poll with 50 answers, 60% of you agrees… So in the next months I would not invest in Google or Meta as they will be hit hard by Temu flop,
❓ How will Big Tech navigate the challenges and opportunities presented by China's ad spend dominance?
