Digital
Why OpenAI is hiring 100 ex-bankers: Inside the ChatGPT-maker's secret project to automate Wall Street's grunt work
Big Tech ad revenues surge in Q3 FY25; Meta leads with 26% growth
Across the board, ad-driven revenues remain the growth engine for Big Tech, accounting for large portions of profitability even as companies diversify into AI, cloud, and commerce.
Meta’s dominance in social and messaging, Alphabet’s strength in search and video, and Amazon’s surge in retail-linked ad formats collectively reaffirm that advertising remains the most lucrative business in the digital ecosystem.
The world’s largest digital advertising players — Alphabet, Meta, and Amazon — reported strong double-digit growth in ad revenues in Q3 FY25, underscoring the continued dominance of tech platforms in the global ad economy.
Alphabet: Search and YouTube Lift Ad Business
Alphabet’s advertising revenue rose 13% year-on-year to $74.2 billion, powered by steady gains in Google Search and YouTube. Search advertising contributed $56.6 billion (+15% YoY) while YouTube ads brought in $10.3 billion (+15% YoY). Total revenue stood at $102.3 billion (+16% YoY) with a gross profit of $61 billion (60% margin) and operating profit of $31.2 billion (31% margin).
Alphabet closed the quarter with net profit of $35 billion, translating to a 34% margin, even as it increased R&D spend to $15.2 billion, or 15% of revenue.
Meta: Messaging and Commerce Ads Drive 26% Surge
Meta led the ad growth race, posting a 26% year-on-year rise in advertising revenue. Its Family of Apps business contributed $50.8 billion in ad revenue, while Reality Labs brought in $0.8 billion. Total revenue reached $52.0 billion, up 23% YoY, generating gross profit of $42 billion and operating profit of $29.5 billion. Meta’s net profit came in at $28.5 billion, with margins expanding to 55%.
The company credited its performance to growth across its ecosystem of apps and message-based commerce formats like WhatsApp ads, which continue to attract advertisers seeking conversational and transactional engagement.
Amazon: Ad Momentum and Prime Video Placements Fuel 24% Rise
Amazon’s ad business maintained its strong run with a 24% year-on-year jump, supported by Prime Video placements and a broadening demand-side platform. Total revenue for Q3 FY25 was $180.2 billion, with advertising contributing $13.2 billion to the mix. Gross profit stood at $91.5 billion, while operating profit reached $17.4 billion, and net profit totaled $11.2 billion.
The company’s third-party seller services ($37.6 billion) and AWS ($33 billion) segments continued to anchor profitability, but the sustained expansion of its advertising unit highlights Amazon’s growing influence in digital marketing.
Across the board, ad-driven revenues remain the growth engine for Big Tech, accounting for large portions of profitability even as companies diversify into AI, cloud, and commerce.
Meta’s dominance in social and messaging, Alphabet’s strength in search and video, and Amazon’s surge in retail-linked ad formats collectively reaffirm that advertising remains the most lucrative business in the digital ecosystem.
SPOTLIGHT
From purpose-driven work and narrative-rich brand films to AI-enabled ideas and creator-led collaborations, the awards reflect the full spectrum of modern creativity.
Read More“Two drunks leaning on a lamppost”: Sir Martin Sorrell on the Omnicom–IPG merger and the turbulence ahead
In a wide-ranging interview with Storyboard18, Sorrell delivers his frankest assessment yet of how the deal will redefine creativity, media, and talent across markets.