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Technology Facebook revenue slips as usage leaps during pandemic

08:45  25 march  2020
08:45  25 march  2020 Source:   msn.com

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Facebook on Tuesday said the coronavirus pandemic has users flocking to its services while it undermines ad revenue on which the world's biggest Twitter on Monday dialed back its earnings expectations for the current quarter, citing the pandemic 's impact on its advertising revenue , even

Usage of Facebook is booming. But its ads business isn't seeing the benefit. In Italy, one of the epicenters of the pandemic , Facebook has seen "time in group calling But this doesn't necessarily translate into more advertising dollars, which makes up the vast majority of Facebook 's revenue .

Facebook on Tuesday said the coronavirus pandemic has users flocking to its services while it undermines ad revenue on which the world's biggest social network depends.

a person holding a sign: Facebook on Tuesday said the coronavirus pandemic has users flocking to its services while it undermines ad revenue on which the world's biggest social network depends. © LOIC VENANCE / AFP Facebook on Tuesday said the coronavirus pandemic has users flocking to its services while it undermines ad revenue on which the world's biggest social network depends.

Online voice and video calls at Facebook-owned Messenger and WhatsApp have more than doubled in places hit hard by the new coronavirus, according to a post by vice president of analytics Alex Schultz and Jay Parikh, vice president of engineering.

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Facebook ’s 45,000 employees have been asked to work at home during the pandemic , emptying the offices.Credit Jason Henry for The New York Times.

As Bboomberg notes, the company said usage for many of its services, including messaging But the services that are booming in popularity during the outbreak aren’t apps or products where Facebook has robust ad businesses, meaning the company isn’t seeing a boost in revenue from the surge in use .

"As the pandemic expands and more people practice physically distancing themselves from one another, this has also meant that many more people are using our apps," Parikh and Schultz said.

Much of the increased use has been at Facebook's free messaging services which don't generate ad revenue, according to the executives.

"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," Parikh and Schultz said.

Soaring use at Facebook's "family" of services and across the internet industry have been unprecedented, they added.

Facebook, which has more than two billion users, is among numerous firms expected to take a hit from the crisis, which has already altered many consumer and online habits.

Online advertising is expected to be affected by the pandemic as many marketing campaigns are cut back, and ad targeting is thrown into chaos.

Twitter on Monday dialed back its earnings expectations for the current quarter, citing the pandemic's impact on its advertising revenue, even though the service has become a hub of conversation about the crisis.

Twitter withdrew an earlier forecast for the first quarter of 2020 and now expects an operating loss along with declining revenues.

Facebook and Fox News hosting virtual town hall on coronavirus pandemic using Portal devices .
Facebook is shipping a Portal Plus to every attendeeTo allow people to participate virtually, Facebook is shipping a Portal Plus device to every audience member so they can attend the town hall and ask questions of the speakers. Approximately 30 people will attend the town hall via Portal, Facebook tells The Verge.

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