The Covid-19 pandemichas impacted the internet giant's Google, Facebook as well as media houses.
Covid-19 Impact on Media
The media sector is facing deep cutbacks (reduction in expenditure) resulting due to an intense economic slump and a reduction in advertising revenues that many news outlets depend on because of lockdowns.
The New York Times has estimated that news outlets have cut 28,000 jobs as a result of the health crisis and subsequent economic impact.
Assistance to Media Sector
Google has announced that it would launch an emergency fund to help local news outlets struggling to maintain operations in the face of Covid-19.
Earlier Facebook also announced a donation of$100 million to support news organizations globally hurting from the Covid-19 pandemic.
Impact on Advertising Business
Google and Facebook’s advertising businesses, which have roughly tripled in combined size over the past five years, may be headed for a rare fall owing to the Covid-19 pandemic.
Once-abundant travel and entertainment ads have all but disappeared from Google search.
The prices for Facebook advertisements are at record lows:
The prices of Facebook ads have declined 35% to 50% on average in recent weeks.
Wall Street analysts have estimated that annual revenues would decline for the first time in the history of the two companies.
Steps taken by Google and Facebook to address challenges arising out of Covid-19
Google had started a “sensitive events” policy last month, which restricts ads on coronavirus content.
On March 9, 2020 it also placed a temporary ban on ads selling masks, citing a supply shortage for medical professionals.
Facebook banned the placement of predatory ads for masks, sanitisers and other personal protective gear, and it eliminated nearly all mask ads across the social network.