The decline of small business is an opportunity for giants like Facebook and Google
As coronavirus pushed the global economy into recession, ad sales fell to record lows. And, paradoxically, such reports are particularly beneficial to Facebook and Google.
Under quarantine, digital content consumption has increased significantly. In March, Facebook said that its services were in high demand, and heavy load on the YouTube platform forced the service to reduce video quality. This solution has helped Internet providers save 25% bandwidth by reducing the amount of data transferred through overloaded infrastructure.
Meanwhile, small businesses stopped buying advertising, with large companies also significantly reducing funding for advertisements and networks. Digital analytics company Pathmatics has noted that online advertising in the entertainment and sports sector fell 20% in the second half of March.
The downfall of small business is an opportunity for giants like Facebook and Google. The reason is simple: These companies have economies of scale that give them a powerful competitive advantage. They simply have the best online services.
According to Forbes notes, due to weak demand and falling advertising prices, only Facebook and Google can survive. They have high traffic in any situation – Facebook and YouTube have 2.2 billion and 1.8 billion users respectively every month. As a result, advertisers will always pay for access to these markets. Those who cannot give anything in this way can be left without giving anything.
Summary PAYSPACE magazine
Recall, YouTube has begun to ban content that directly contradicts the recommendations of the World Health Organization, as the coronavirus epidemic continues to destroy the United States and other countries. Google-owned video hosting says it will remove anything it deems “medically inappropriate”.
YouTube CEO Susan Wojicki said media giants want to erase “platform misinformation”. YouTube also removes conspiracy theory-related content that connects Kovid-19 to the 5G network.
Read: Zoom option: Facebook launches its video chat
According to the material Forbes