Facebook, Google may lose over USD44 billion in ad revenue in 2020
The novel coronavirus pandemic can wipe out more than $44 billion in global ad revenue for the tech giants Facebook and Google in 2020 as 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, Variety reported on Thursday, quoting Cowen's data.
However, Facebook's advertising business is projected to "bounce back" in 2021, growing 23 per cent (year-over-year) to $83 billion, said the Cowen analyst team.
"For full-year 2020, Google will generate $54.3 billion in operating income (43 per cent adjusted EBITDA margin) and Facebook will pull in $33.7 billion (49 per cent margin)," according to Cowen's forecast.
In a separate blog post, LightShed analyst Rich Greenfield said that "digital platforms are feeling the pain soonest, given the relative ease of pulling ad spend versus mediums such as television (who are likely to experience far more pain in Q2 than Q1)".
Cowen has cut its full-year revenue forecast for Twitter by 18 per cent.
"Amazon's ad business, meanwhile, is �generally less exposed' to the downturn than other large digital platforms because the company's advertising is mostly related to product searches".
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.
"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," said Alex Schultz, VP of Analytics and Jay Parikh, VP of Engineering.
With one-fifth of the world's population now under lockdown and industries shutting operations amid global supply chain issues, the new coronavirus pandemic is set to deliver a sharp and deep economic shock, a new report has said.
According to analysts at BlackRock Investment Institute, market moves are reminiscent of the darkest days of the financial crisis, but they don't think this is a repeat of 2008.
"Stringent containment and social distancing policies will bring economic activity to a near standstill, and lead to a sharp contraction in growth for the second quarter", it said.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User 

    Telegram: A Better Messaging App Than WhatsApp
    In the world of instant messaging, WhatsApp is the number one. However, with increasing discovery of security issues in WhatsApp, Telegram is fast catching up. Telegram is a WhatsApp alternative which is fast, simple, secure and available across devices. You can send media and files without any size limitation (WhatsApp has limitations) - your entire chat history will require no disk space on your device and will be securely stored in the Telegram cloud for as long as you need it.
    In WhatsApp, if you create groups, there is a limitation of 256 members. On Telegram, you can create groups with 200,000 members! It also has powerful photo and video editing tools and an open sticker / GIF platform to cater to your creative genes. It is 100% free, without ads and there is no third-party access to your data.
    For those interested in maximum privacy, Telegram offers secret chat. Messages can be programmed to self-destruct after a pre-determined timeframe after reading.
    A growing, safe and secure platform for instant messaging. Try it out today!
  • Like this story? Get our top stories by email.




    1 week ago

    Based on previous suggestions in this article, I am using Signal which is equally good. No complaints so far. Rainbow was also suggested in this article. These articles provide good information but somehow lacks references or continuity to previous suggestions from same or other authors and hence may feel little confusing if we take instant decisions to switch to suggested apps. If these articles are really from experts in such field, then continuity in such suggestions will add a lot of value in the field of such Technical articles for MAS readers.


    2 weeks ago

    I would say Threema is better. Keybase is also decent.

    Headway: Top Ideas from the Best Books
    Dive into any topic and master any skill with the world’s best books on productivity, negotiation, money, health, love, business, investment, etc. If you have a busy schedule, no worries—you will spend only 15 minutes per book, maximum!
    You have an audio version for each summary; so you just have to listen. There are actionable insights which give you action points for each book. A recall technique that helps your brain to keep the book’s insights in memory and a non-stressed notification system to achieve your goals—all have been built-in.
    So, if you want to be a rock-star at public speaking, want to succeed in business, get the promotion or you want to find out how to fill your home with love and happiness, Headway Books is for you - to learn from the world’s brightest minds!
  • Like this story? Get our top stories by email.


    We are listening!

    Solve the equation and enter in the Captcha field.

    To continue

    Sign Up or Sign In


    To continue

    Sign Up or Sign In



    online financial advisory
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone