san francisco sources stated that facebook has admitted that its ad business has been adversely affected in countries severely hit by the novel coronavirus while non-business engagement like messaging has exploded which is affecting its services like Messenger and WhatsApp.
The coronavirus outbreak could wipe out more than $44 billion in global ad revenue for the tech giants facebook and google in 2020 as wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital advertising runs dry, a new report has predicted. According to global investment bank and financial services company Cowen & Co., Google’s total net revenue is projected to be about $127.5 billion down $28.6 billion. Facebook’s ad revenue for 2020 is forecast at$67.8 billion a decrease of $15.7 billion.
However, Facebook’s advertising business is projected to “bounce back” in 2021, growing 23 per cent to $83 billion, said the Cowen analyst team. As countries after countries announce total lockdown, internet usage has exponentially grown in the past few days, forcing tech companies like amazon, Netflix, apple and google to lower their video quality to let the services up and running. alex Schultz, VP of Analytics and Jay Parikh, VP of Engineering, in a statement on tuesday "Our business is being adversely affected like so many others around the world. We don't monetize many of the services where we're seeing increased engagement, and we've seen a weakening in our ads business in countries taking aggressive actions to reduce the spread of COVID-19". Similarly, in places hit hardest by the virus, voice and video calling have more than doubled on Messenger and WhatsApp. In italy, specifically, facebook has seen up to 70 per cent more time spent across its apps since the crisis arrived in the country. instagram and facebook Live views doubled in a week.
