In recent years, a conclusion was repeated in the analysis of the online advertising market. Google and Facebook were getting stronger and stronger in the advertising market. Of every new dollar that went into ad spend, they took the bulk of the investment. The power of both was increasing and analysts were already speaking of them as a duopoly. They were the great kings of the market, the giants who were destroying everything and that only another giant (Amazon, some of the recurring theories pointed out) could stop. Its revenues were in the billions of dollars and spanned the market globally.But now that the advertising market is suffering from the impact of the coronavirus, it is to be expected that the revenues of the two online advertising giants will also do so. And, if the fall is abrupt, those who move higher amounts of money will notice the blow in a much broader way. Estimates are already beginning to point to how much money Google and Facebook may lose these months and the figures are very high.The estimates of Cowen & Co suggest that although both Google and Facebook continue to be companies with extensive benefits before closing the year will lose thousands of dollars by the slowdown of the market. The amount, they estimate, will reach 44,000 million dollars.
Those are the numbers that will vanish from the online advertising market amid the coronavirus debacle Swaziland Email List and that Facebook and Google will lose jointly.The analysis firm has also estimated how much money these two companies will lose at the end of the year. Google is now expected to bill $ 137.5 billion, which is an 18% drop from the previous estimate. $ 28.6 billion would be volatilized in the company’s accounts.For Facebook, Cowen & Co believes that the decline will be 19%. Now he thinks he will close the year with $ 67.8 billion in advertising revenue, which means losing $ 15.7 billion.Facebook has already recognized the impactFacebook has already acknowledged that ad revenue has fallen, even if it did so in passing.
In a post on their corporate blog in which they give data on how they are seeing the impact of the situation on the use of their services, they acknowledged that the use of messaging, video calls and viewing lives had been increasing.They also recognized that traffic was growing on messaging services (not monetizable) and that they were seeing an impact. “Our business is being negatively affected like many others in the world,” they acknowledged . The services that were becoming more popular are not the ones that monetize and Facebook acknowledged that they are noticing a “weakening” of their advertising business “in countries that are taking aggressive measures to reduce the reach of covid-19.”
As more and more countries are closing the population in processes of confinement and quarantine, it is logical to assume that this will increase.For Facebook and Google, 2020 will be a year therefore not as good as they expected, although the waters will return to their course in 2021. Returning to the data from Cowen’s analysis, Facebook is expected to grow again by 23% in 2021. And In spite of everything, the end of the year will be with amounts of billionaire income, both on Google and Facebook.The two giants will not be the only ones. Analysts also believe that Snap and Twitter will lose ad revenue this year. Amazon, they point out from Cowen, will do less because its advertising business is “less exposed.”