Meta Ad Revenue Jumps 26% to $63.1 Billion as Google Search Growth Slows to 12%

3 articles · Updated · CNBC · Nov 1

Meta’s advertising business expanded 26% in Q3 to $63.1 billion, more than twice Google Search’s 12% growth to $63.4 billion, leaving the two ad engines nearly equal in size.
AI is driving the split: Meta said better targeting tools lifted advertiser performance, with adopters generating nearly 5% more conversions and spending 9% more, while Instagram engagement created more ad inventory.
Google’s challenge is that ChatGPT, Claude and its own AI search features are changing user behavior, with more answers delivered directly and fewer clicks on traditional links even as query volume hit a record.
Investor anxiety around that shift intensified after Alphabet’s earnings, sending the stock down more than 12% in its worst trading day ever and erasing about $500 billion in market value.
The divergence matters because both companies are funding massive AI buildouts from advertising cash flow—Google plans up to $205 billion in capex this year and Meta up to $145 billion—while trying to prove those bets can pay off.