- Facebook usage has skyrocketed due to coronavirus locks.
- However, the advertising business will not be boosted, as much of the activity is in non-monetized services, while advertisers are withdrawing due to the pandemic.
- On Tuesday, the company released a blog post that explains how the outbreak of the corona virus affects business.
- Certain usage peaks are detected in messaging and group video chats.
The use of Facebook is booming. However, the advertising business sees no benefit.
The Silicon Valley-based social networking company has seen exceptional traffic on its various apps as users turn to technology around the world to solve the problems during unprecedented corona virus locks. At the same time, the core business of advertising is under pressure, according to the company.
On Tuesday, Facebook published a blog post by Analytics Vice President Alex Schultz and Engineering Vice President Jay Parikh, detailing the effects of the corona virus on the company's infrastructure and business. "In many countries most affected by the virus, the total number of messages has increased by more than 50% in the past month," they write. In Italy, one of the epicentres of the pandemic, Facebook noted that "the time for group conversations (calls with three or more participants) has increased by over 1,000% in the past month."
However, this doesn't necessarily mean more advertising dollars, which make up the bulk of Facebook's earnings.
The two executives wrote: "We have received questions about the revenue and therefore would like to provide a context here as well: Much of the increased data traffic takes place on our messaging services, but we have also seen more people who use our feed and story Use products to get them. " Updates from her family and friends. At the same time, our business is affected like so many others around the world. We are not monetizing many of the services that we see increased engagement in, and we have seen a slowdown in our advertising business in countries that are taking aggressive measures to reduce the spread of COVID-19. "
In other words, Facebook doesn't make money as easily (or not at all) with certain forms as with its core newsfeed, and advertisers spend less on ads because of the economic impact of COVID-19 and the associated quarantines.
Executives compared increasing activity to the waves seen during New Year celebrations or the Olympics – but much more sustainably. "Maintaining stability during these spikes is more difficult than usual now that most of our employees work from home. We are carefully monitoring usage patterns, making our systems more efficient, and expanding capacity to reduce the potential." By congesting the network, we are temporarily reducing the bit rates for videos on Facebook and Instagram in certain regions. Finally, we conduct tests and other preparations so that we can quickly react to problems that may arise with our services. "
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