The Ongoing CO.VID-19 Pandemic Can Wipe Out More Than $44 billion From Facebook And Google Ads

As estimated in a recent report, the COVID-19 pandemic can give tech giants like Facebook and Google a hard time when they're likely to suffer a revenue loss of about $44 billion 2020 owing to the cancellation of digital advertisement. 

According to the international investment bank and financial services company Cowen & Co., Google’s total income is supposed to reach about $127.5 billion, which means they could lose $28.6 billion. Regarding Facebook’s ad revenue, it could decrease by approximately $15.7 billion from the forecasted total at $67.8 billion. 

However, Cowen analysts added that Facebook has projected to regain its profit in 2021, with the aim of growing 23 percent (year-over-year) to $83 billion.

Cowen also provided the operating income of Google will be $54.3 billion, estimated by 43% of adjusted EBITDA margin and Facebook’s will be $33.7 billion, estimated by 49% margin. 

This issue is also mentioned in LightShed analyst Rich Greenfield’s private blog post, which ensured that digital platforms were suffering from serious income loss, therefore gave the relative ease of decreasing as spend, like televisions. 

Another tech company being mentioned because of its revenue loss is Twitter, who could lose full-year ad earnings by 18%. Meanwhile, Amazon’s advertisement business is said to be the least affected by the downturn because its advertisement is mostly attached to product sales. 

Facebook has admitted that its ad business sale has plummeted severely owing to the influence of the ongoing pandemic, but their non-business apps like Messenger or WhatsApp has suffered from the service explosion. In addition to this, Alex Schultz, VP of Analytics and Jay Parikh, VP of Engineering said that they didn’t gain profit from many services that have increased engagement because they noticed the weakness in the international ads business was negatively affecting our attempts to reduce the spread of COVID-19.