Here's How Much Revenue Digital Advertising Giants Are Losing Due to Coronavirus
In late March, Twitter (NYSE: TWTR) released an update to investors withdrawing its previous financial guidance for the first quarter. The next day, Facebook (NASDAQ: FB) said it's seen weakening in its ad business in the last few weeks. Google, the Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary, hasn't released any updates, but it's surely seen a big hit to its top line as well.
Overall, digital advertisers could lose over $45 billion in revenue this year from the impact of the novel coronavirus, according to estimates from Cowen analyst John Blackledge. Digital advertisers are most susceptible because they generate most of their revenue through self-serve platforms, where ad spend is easy to rein in.
While that means the decline in ad revenue for digital media companies will be significant, it also means they'll return to normal growth much faster. In fact, the ultimate impact of coronavirus could be an acceleration in shifting ad spend to digital platforms.
Source Fool.com
