Ad boom rains billions on Big Tech – Axios

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Advertising growth was the chief driver of tech's blowout quarter, as the economy snapped back from the pandemic and a long-term shift to digital went into overdrive.
By the numbers: Facebook, Snapchat, Twitter, LinkedIn, YouTube and Google all posted record ad revenue growth rates in earnings reports for 2021's second quarter.
Of note: It's far easier for companies with relatively modest total ad revenues — like Twitter and Snapchat, which both stand at roughly $1 billion for the quarter — to show such fast rates of growth.
Be smart: Three factors drove last quarter's monster growth:
Flashback: A year ago, tech firms warned that ad revenue growth would slow down because of pandemic-related business cutbacks.
Those investments are now paying off.
What to watch: Last quarter proved how resilient ad-driven tech firms have been through a period of extreme volatility. But growth rates are unlikely to be this dramatic in the second half of the year.
Illustration: Aïda Amer/Axios
Most of today's tech giants are no longer run by their founders, but by a new breed of successor CEOs tasked with holding true to a corporate mission while continuing to pump up growth.
The big picture: Silicon Valley has long embraced a "founders know best" philosophy. But eventually, most successful founders get old and tired and rich — and lose interest in the meetings, the management messes, and the sheer hard work of running a company.
Photo illustration: Axios Visuals. Photo: Andrew Harrer/Bloomberg via Getty Images
Facebook says it's finally ready to launch its most ambitious new product in years: a digital wallet called Novi. But the man leading the charge says Washington could stand in its way.
Why it matters: Facebook needs to convince regulators skeptical of its power that it's a good idea. "If there's one thing we need, it's the benefit of the doubt," Facebook's David Marcus said in an interview with Axios. "[W]e're starting with a trust deficit that we need to compensate."
Photo courtesy of Dotdash
Dotdash, the digital media company owned by IAC, is launching its first-ever standalone store pegged to its site Liquor.com, which it acquired in 2019.
Why it matters: Dotdash now makes roughly one-third of its annual revenue from commerce. It's hoping standalone e-commerce stores like The Liquor.com Store will accelerate that effort.

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