Facebook and Google will take a revenue hit as the thousands of small businesses that they rely on for advertising cut back spending amid the coronavirus, but ad buyers say they’ll come out stronger long term.
Wall Street firm Pivotal Research Group expects Facebook’s 2021 revenue to be down 20% to 25% while Google’s will decline 15% to 20%.
Facebook acknowledged that its ad business would be impacted by the spike in usage of messaging apps that aren’t as lucrative as its newsfeed and stories products.
Ad buyers said post-pandemic, people will have shifted more of their behavior online and more dollars may move to performance-based platforms, which will benefit the tech giants.
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Facebook and Google could take a short-term hit as small businesses cut spending due to the coronavirus, but they’ll come out of the pandemic stronger than other digital players, according to media buyers.
It’s easy for brands to pull digital spending as opposed to TV advertising, which can take time to pull airings and negotiated contracts.
But Harris Diamond, chairman and CEO of McCann Worldgroup, said Facebook and Google would ultimately come out stronger in the long run because homebound consumers are getting more comfortable with …read more
Source:: Businessinsider – Technology