Google’s and Facebook’s advertising businesses, which have roughly tripled in combined size over the last five years, may be headed for a rare stumble as the coronavirus pushes the global economy into a tailspin, reports The New York Times.
The Time post states that once-abundant travel and entertainment ads “have all but disappeared from Google search. The prices for Facebook advertisements are at record lows. And Wall Street analysts are estimating that annual revenues will decline for the first time in the history of the two companies.
“It’s the type of downturn that traditional media has experienced before, but was hard to imagine for the duopoly that accounts for more than half of the spending in online advertising.
“And yet as gloomy as the situation may appear for Google and Facebook, the outlook for the rest of the digital advertising industry is even bleaker. What little digital spending there is will still flow to them, leaving smaller social media platforms and publishers out in the cold.”