Yesterday after the close, FB published a blog post saying: "Despite an increase in engagement on some platforms, in places hit hardest by the virus,” FB is seeing a weakening in its ads business in countries taking actions to reduce the spread of the COVID-19. (FB's full blog post is below.) We had already lowered our FY20 FB estimates, but we now lower our FY21 estimates as well. FB data points help answer a key question facing many ad-driven businesses during COVID-19. That is, whether added engagement (time spent viewing) will be offset by a sharp advertising demand downdraft from large categories of digital advertising such as travel (6%-8%), entertainment (5%), small offline retailers and consumer products companies. Yesterday, FB, Twitter and Comcast each disclosed data points that address this 1H20 economic tug-of-war.
Facebook: COVID-19 Impact on FB Usage vs Ad Revenue
![Facebook: COVID-19 Impact on FB Usage vs Ad Revenue](/media/articles/wall_st_money-with-a-clock-and-an-eye-in-the-center-of-the-dial_StP3-dASj-graph_wyIyk58.jpg.550x380_q85_box-60%2C0%2C2940%2C2000_crop.jpg.webp)