The Google & Facebook Company May Lose Over $44 Billion in Ad Revenue in 2020

The Facebook & Google Company May Lose Over $44 Billion in Ad Revenue in 2020 Due to Coronavirus

 

The COVID-19 pandemic can wipe out more than $44 billion in global ad revenue for the tech giants Facebook & Google in 2020 as digital advertising runs dry, a new report has predicted.The Global investment bank & financial services company Cowen & Co., Google's total net revenue is projected to be about $127.5 billion -- down $28.6 billion. The Facebook Company ads revenue for 2020 is forecast at $67.8 billion are decrease of $15.7 billion, Variety reported on Thursday, quoting Cowen's data.Whenever Facebook advertising business is projected to "bounce back" in 2021, growing 23 percent (year-over-year) to $83 billion, said the Cowen analyst team.

 

This full-year 2020, in Google are generate $54.3 billion in operating income (43 percent adjusted EBITDA margin) & Facebook will pull in $33.7 billion (49 percent margin),According to the Cowen's forecast.

In the blog post, LightShed analyst Rich Greenfield are 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 are cut its full-year revenue forecast for Twitter by 18 percent.

 

The Amazon Company ads business, meanwhile, is 'generally less exposed' to the downturn than other large digital platforms because the company's advertising is mostly related to product search.

 

Social Company Loss & Its Decission

 

The Facebook Company are 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 & WhatsApp.

The business is being adversely affected like so many others around the world. Don't monetize many of the services where we're seeing increased engagement, & we've seen a weakening in our ads business in countries taking aggressive actions to reduce the spread of the COVID-19," said Alex Schultz, VP of Analytics and Jay Parikh, VP of Engineering.With one-fifth of the world population now under lockdown & industries shutting operations amid global supply chain issues, the Coronavirus pandemic is set to deliver a sharp and deep economic shock, a new report are said.

The 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.

The Stringent containment & social distancing policies will bring economic activity to a near standstill, & lead to a sharp contraction in growth for the second quarter" it said.

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