People are using Facebook more than ever these days, and a big part of the reason why that is the case has to do with the fact that there are a lot of people that are forced to stay home due to the pandemic that the world is struggling to get over and there are far too many ways in which this pandemic might end up causing you a lot of harm so self isolating is the best thing you can do to protect yourself as well as the people around you.
As a result of the fact that, people that are stuck at home are spending a lot of this time scrolling through Facebook, and you might think that this would mean that the social media platform would be sitting pretty, while the rest of the world’s economy is tanking. However, the fact of the matter is that things might not be as rosy for Facebook as you might initially be thinking. Even though there are quite a few people out there that are using this platform more than ever before, advertisers and brands are still pulling back their digital campaigns.
Even though Facebook exists in a digital space, it is definitely impacted by the real world at large. There are all kinds of reasons behind why advertisers would want to reduce their ads, mostly because of the fact that ads might be in poor taste in the current climate and will also not be all that effective which is why advertising agencies would want to save their money for a time when people are not quite so preoccupied with a global pandemic. This is resulting in much lower revenues for Facebook, something that might just have a lasting impact on the social media platform if things continue the way they are right now.
Read next: COVID-19 Crisis is Impacting the Social Media Ads We See
As a result of the fact that, people that are stuck at home are spending a lot of this time scrolling through Facebook, and you might think that this would mean that the social media platform would be sitting pretty, while the rest of the world’s economy is tanking. However, the fact of the matter is that things might not be as rosy for Facebook as you might initially be thinking. Even though there are quite a few people out there that are using this platform more than ever before, advertisers and brands are still pulling back their digital campaigns.
Even though Facebook exists in a digital space, it is definitely impacted by the real world at large. There are all kinds of reasons behind why advertisers would want to reduce their ads, mostly because of the fact that ads might be in poor taste in the current climate and will also not be all that effective which is why advertising agencies would want to save their money for a time when people are not quite so preoccupied with a global pandemic. This is resulting in much lower revenues for Facebook, something that might just have a lasting impact on the social media platform if things continue the way they are right now.
"Much of the increased traffic is happening on our messaging services, but we’ve also seen more people using our feed and stories products to get updates from their family and friends. At the same time, our business is being adversely affected like so many others around the world.", explained Alex Schultz, VP of Analytics, and Jay Parikh, VP of Engineering in a blog post on Facebook. Adding further, "We don’t monetize many of the services where we’re seeing increased engagement, and we’ve seen a weakening in our ads business in countries taking aggressive actions to reduce the spread of COVID-19.".
- Also read: Twitter Ad Revenue Hit By COVID-19 Despite Active Users Increase Rapidly Above The Usual Level
Read next: COVID-19 Crisis is Impacting the Social Media Ads We See
