Adobe’s third-quarter digital ad revenue was down 19.2% from the previous quarter and 19.7% year over year, with $67 million reported in last quarter in comparison to $83 million in the second quarter and $81 million for 3Q 2022. Despite this, improved earnings for Adobe Customer Experience Cloud more than made up for these losses, with $1.2 billion recorded this quarter and $3.62 billion year-to-date. This indicates that businesses appear to be moving more dollars to areas of digital marketing with more direct control, such as customer experience, and retail media networks likely to benefit from increased ad spend.
Adobe’s third-quarter results exceeded Wall Street estimates on both the top and bottom lines with adjusted earnings of $4.09 per share compared to estimates of $3.98 and record revenue of $4.89 billion versus expectations of $4.87 billion. Anil Chakravarthy, Adobe’s president of Digital Experience Business, said in an investor call that “customers continue to prioritize investments in CXM solutions despite increased scrutiny of enterprise IT spend”, highlighting the importance of customer experience.
The decline in digital ad revenue is a reminder that it isn’t everything, and that businesses must be aware of what areas of digital marketing they have more control over. Although digital advertising will come back, it’s clear that customer experience will remain a focal point for businesses looking to succeed in the digital world.
Originally reported by Martech: https://martech.org/adobe-3q-digital-ad-revenue-down-19-vs-last-quarter/
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