{"id":4753,"date":"2020-04-17T06:45:42","date_gmt":"2020-04-17T06:45:42","guid":{"rendered":"https:\/\/ncrfrontlinenews.com\/?p=4753"},"modified":"2020-04-17T06:45:42","modified_gmt":"2020-04-17T06:45:42","slug":"facebook-cuts-ad-rates-by-20-as-business-slips-in-covid-19-times","status":"publish","type":"post","link":"https:\/\/ncrfrontlinenews.com\/?p=4753","title":{"rendered":"Facebook cuts ad rates by 20% as business slips in COVID-19 times"},"content":{"rendered":"

San Francisco:<\/strong>\u00a0Facebook has reportedly cut its advertisement rates by nearly 20 per cent in recent weeks as ad spending on its platform has taken a severe hit owing to the COVID-19 pandemic.<\/p>\n

According to a Wall Street Journal report, there has been 15-20 per cent cut in ad rates on the social media platform in the month of March as compared to February.<\/p>\n

Wpromote, a digital marketing agency that handles $130 million in yearly ad spending on the social media platform, told The Wall Street Journal that \u201cFacebook\u2019s rates have declined 25 per cent from February to March\u201d.<\/p>\n

Another marketing company 4C Insights that manages $350 million in ad spending on tech platforms, said one ad cost on Facebook-owned Instagram to get in front of 1,000 users dipped 22 per cent in the same period.<\/p>\n

As more people log on to Facebook from homes, the uptick in usage has not resulted in top ad dollars for the social networking giant.<\/p>\n

To stem the losses, Facebook is reportedly going after ad budgets that had previously been earmarked for televised sporting events.<\/p>\n

According to the report, Facebook is pitching its video ads as an ideal place to spend those ad dollars that would have gone to sponsor sporting events.<\/p>\n

Facebook in late March admitted that its ad business has been adversely affected in countries severely hit by the novel coronavirus while non-business engagement like messaging has exploded which is affecting its services like Messenger and WhatsApp.<\/p>\n

\u201cOur business is being adversely affected like so many others around the world. We don\u2019t monetize many of the services where we\u2019re seeing increased engagement, and we\u2019ve seen a weakening in our ads business in countries taking aggressive actions to reduce the spread of COVID-19,\u201d said Alex Schultz, VP of Analytics and Jay Parikh, VP of Engineering.<\/p>\n

The novel coronavirus pandemic can wipe out more than $44 billion in global ad revenue for the tech giants Facebook and Google in 2020 as digital advertising runs dry.<\/p>\n

According to global investment bank and financial services company Cowen & Co, Google\u2019s total net revenue is projected to be about $127.5 billion \u2014 down $28.6 billion.<\/p>\n

Facebook\u2019s ad revenue for 2020 is forecast at $67.8 billion \u2013 a decrease of $15.7 billion.<\/p>\n

However, Facebook\u2019s advertising business is projected to \u201cbounce back\u201d in 2021, growing 23 per cent (year-over-year) to $83 billion, said the Cowen analyst team.<\/p>\n","protected":false},"excerpt":{"rendered":"

San Francisco:\u00a0Facebook has reportedly cut its advertisement rates by nearly 20 per cent in recent weeks as ad spending on its platform has taken a severe hit owing to the COVID-19 pandemic. According to a Wall Street Journal report, there has been 15-20 per cent cut in ad rates on the social media platform in […]<\/p>\n","protected":false},"author":2,"featured_media":4754,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":{"0":"post-4753","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"_links":{"self":[{"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/posts\/4753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4753"}],"version-history":[{"count":1,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/posts\/4753\/revisions"}],"predecessor-version":[{"id":4755,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/posts\/4753\/revisions\/4755"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/media\/4754"}],"wp:attachment":[{"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}