AI Lifts Meta Ad Growth While Google Search Growth Slows

What happened

Meta's advertising revenue rose 26% year over year in the third quarter to $63.1 billion, more than twice Google's Search division growth of 12%, on $63.4 billion in revenue. The 14-percentage-point growth gap was Meta's widest advantage since 2021. Google said search queries reached a record, although revenue growth slowed.

Confirmed

Global impact / market context

Faster ad revenue growth suggests Meta's improved AI targeting is helping it attract or earn more from advertising. If chatbots continue diverting searches and link clicks from Google, that could weaken the traffic advertisers pay to reach, while intensifying competition for digital ad budgets.

Analyst inference

The figures show contrasting growth rates, not a decline in Google's Search revenue: its queries reached a record, but revenue grew more slowly. For investors, the key distinction is whether Meta's targeting gains persist and whether chatbot use materially reduces the searches that support Google's advertising business.

Analyst inference

What to watch

1. In upcoming results, compare Meta's ad revenue growth with Google's Search revenue growth to see whether the reported 14-percentage-point gap persists or narrows. Analyst inference
2. Watch for company disclosures linking Meta's AI targeting tools to advertising results; the article reports improvement but gives no separate revenue contribution from those tools. Analyst inference
3. Track Google's updates on search queries and revenue growth alongside evidence of chatbot-driven changes in link clicks, which could affect advertising reach and revenue. Analyst inference

Evidence

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