Facebook ad revenue drops despite increased coronavirus-induced usage
With brands pulling ad spend in the worst affected countries, Facebook's advertising revenue is dropping, despite more people using its products.
In Italy, time spent on Facebook's group calls has increased 1,000%, while time spent across Facebook apps was up 70%.
The coronavirus crisis is causing people to use Facebook, and its other platforms Instagram and Whatsapp, more but the messaging facilities they're using aren't monetised.
In some hardest hit countries, messaging volumes have risen by half this month compared to Februrary.
Jay Parikh, VP of Engineering and Alex Schultz, VP of Analytics said in a blog post: “As more people practise physically distancing themselves from one another, this has also meant that many more people are using our apps.
"Much of the increased traffic is happening on our messaging services, but we’ve also seen more people using our feed and stories products to get updates from their family and friends.
"At the same time, our business is being adversely affected like so many others. We don’t monetise 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."