The digital ad divisions of Alphabet Inc (GOOGL.O) and Microsoft Corp (MSFT.O) on Tuesday reported first-quarter revenue that missed Wall Street expectations, as companies tightened their marketing budgets in the face of rising inflation and the war in Ukraine. Alphabet’s Google ad revenue rose 22% year over year to $54.7 billion in the quarter, but missed analysts’ estimates of $55.9 billion, according to Refinitiv data. Microsoft’s ad revenue grew 18% to $10.6 billion, short of analysts’ estimates of $10.7 billion. The slowdown in growth for the two tech giants, which dominate the digital ad market, comes as companies across industries grapple with higher costs and supply chain issues, leading them to cut back on discretionary spending, including advertising. .
Microsoft and Alphabet first-quarter digital ad divisions lag estimates amid uncertain times
