Meta's third-quarter ad revenue grew 26% to $63.1 billion while Google's Search and other unit grew 12% to $63.4 billion, according to CNBC. The two businesses are now almost the same size, and the 14-point growth gap is the widest in Meta's favour since 2021. CNBC attributes the split to AI improving Meta's targeting while chatbots chip away at classic search clicks.
The numbers side by side
Meta's ad revenue went from $50.1 billion a year earlier to $63.1 billion in Q3. Google's search business came in at $63.4 billion, with YouTube adding another $11 billion and Google Cloud more than doubling to $31 billion. Ads still make up 98% of Meta's sales, against less than two-thirds of Google's.
The market read the reports very differently. CNBC notes Alphabet stock fell more than 12% after its results, its worst day ever, while Meta shares fell 14% across October after a strong September, as investors weighed both companies' AI spending.
Why Meta is pulling ahead
Meta CFO Susan Li told investors that advertisers adopting Meta's AI recommendations saw almost 5% more conversions and increased ad spend 9% versus non-adopters. She said almost 10 million advertisers used at least one Meta AI tool in Q3, and cited Simply Organic Maple, which reported 57% more purchases and a 36% lower cost per purchase with Meta's AI assistant.
On the other side, Google search queries hit a record but revenue growth is slowing as AI Overviews and AI Mode return summaries rather than links. Emarketer analyst Nate Elliott told CNBC a habit shift away from Google could be "potentially catastrophic" for its ad business. CNBC also lists Meta's own Muse assistant among the chatbots competing for search behaviour.
What it means for budgets
Strong advertiser demand on Meta going into Q4 means more competition in the auction, so build CPM headroom into holiday plans. At the same time, Meta's ad machine is leaning harder on its own AI systems, which rewards accounts that feed it clean conversion data and enough creative volume.
If you split spend between Google Search and Meta, this is a reminder to judge channels on blended, incrementality-tested results rather than platform-reported ROAS alone. Both platforms are pushing AI-driven automation that makes their own reporting harder to compare.
- Recheck CPM and CPA benchmarks before BFCM budgets lock
- Test Meta's AI recommendations against a control before applying them account-wide
- Keep search for high-intent queries and measure overlap with Meta retargeting
Keeping spend flowing in Q4
Higher spend in a pricier auction also raises the stakes of a disabled ad account or a declined card mid-campaign. Power Ads runs agency accounts on its own corporate cards with a 24/7 operator, for 4% of each top-up, which can help keep top-ups and replacements moving when volume spikes.
What it means for you
- Meta ad revenue grew 26% vs 12% for Google Search in Q3
- Almost 10 million advertisers used a Meta AI tool last quarter
- Expect Q4 auction pressure on Meta to stay high; plan CPM headroom
- Compare channels with incrementality tests, not platform ROAS alone
