Coronavirus Hits Facebook Advertising Sales

Coronavirus Hits Facebook Advertising Sales

Facebook

Facebook said on Tuesday the coronavirus outbreak was undercutting sales of the advertising that accounts for nearly all of its revenue, even as more users spend time on the social network during virus-related lockdowns.

“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,” the company said in a statement.

Facebook shares fell about 1% after hours following an 8.7% rise in regular trade.

The company said messaging across its platforms had increased more than 50% over the last month in many of the worst affected countries. In Italy specifically, users have been spending 70% more time in its apps.

Group calling with three or more participants increased by over 1,000% in Italy in the last month.

Reuters reports that Facebook declined a request for comment on precisely which of its markets were experiencing adverse business impact or the magnitude of that impact.

The company’s statement echoes similar industry guidance the day before from Twitter, which reported a boost in active users but pulled its first-quarter revenue outlook and forecast an operating loss due to the outbreak.

Many advertisers have pulled marketing budgets to rein in costs because of virus-related uncertainty. Some are also apparently hesitant to advertise alongside coronavirus discussions for fear of associating their brands with the sensitive topic.


whatsapp
Have a story to tell, or images to share on interesting Nigeria news? Send them to Concise News via Whatsapp (0906 928 2577)

Donatus Anichukwueze is a journalism graduate from the Lagos State University, School of Communication. He's a writer with a special interest in technology, sports, entertainment and politics. He's also a through and through Chelsea FC fan.


Tired of generators? Get PRAG INVERTER, Nigeria's No.1 Inverters Be the first to know...Get daily round up of top Nigerian newspaper headlines. Click here. Tired of estimated bills/generator noise? Go off the grid...get PRAG SOLAR for 24/7 noiseless and uninterrupted power supply.

Add Concise To Homescreen.