Digital ad market is avoiding coronavirus disaster, say tech giants

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Reports of the demise of the digital advertising market due to the coronavirus outbreak appear exaggerated as the tech giants dominating the online ads business, Google and Facebook, said this week they saw early signs that the worst could be over.

FILE PHOTO: Facebook, Google and Twitter logos are seen in this combination photo from Reuters files. REUTERS

They issued first-quarter results that factored in only two weeks of the widespread stay-at-home orders in the United States. But both companies also reassured investors that revenue for the first three weeks of April showed signs of stability, following lower revenue in March. Brand advertising that is used to spread awareness and name recognition for a company, but whose effectiveness is often more difficult to measure, was harder hit. Alphabet said on Tuesday brand advertising declined on YouTube in mid-March, when the pandemic accelerated in the United States.

Facebook executives said on Wednesday they expected direct response advertising to continue to drive ad sales and that the coronavirus pandemic only reinforced the importance of the strategy. Snap Inc, which owns messaging app Snapchat, said it would shift resources on its ad sales team to serve direct response advertisers better, due to the success of the category.

 

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Facebook’s 1Q20 ad revenues are down 15% Q/Q and their forecast unch Y/Y for the 2Q20 is actually down almost 5% from 1Q20. So they are down 20%. Don’t you just love the spin?

What does the word fudging mean?

It’s no surprise as social media has more active daily users now than ever before.

Well people are staying home consuming online content, of course it's best their ads

Impossible. In the most ideal approach, it is negotiating its way through it. Avoiding? Are you Dr. Manhattan? This is not a comic book, ya nerd.

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