Zedge's advertising revenue in Q1 2025 declined significantly, primarily due to challenges in the advertising market and the impact of TikTok's reduced U.S. ad spend and its temporary removal from app stores. Here's a detailed analysis:
- TikTok's Impact: Zedge's advertising revenue was negatively affected by TikTok's reduced U.S. ad spend and its temporary removal from app stores. This led to a decline in programmatic ad market and lower CPMs (Cost Per Mille), resulting in a substantial decrease in Zedge's advertising revenue1.
- Overall Revenue Decline: Zedge reported a total revenue of $7 million for Q1 2025, which represents a 10% year-over-year decline. This decline was primarily driven by the advertising revenue decrease, which fell to $4.698 million from $5.482 million compared to the same quarter the previous year2. The decrease in digital goods and services revenue also contributed to the overall revenue decline2.
In conclusion, Zedge's advertising revenue in Q1 2025 experienced a significant decline due to TikTok's reduced ad spend and its temporary removal from app stores, leading to a overall revenue decline.
4/14/2025 06:35am
