Covid-19 Impact on Digital Media | 16 Apr 2020

Why in News

• The Covid-19 pandemic has impacted the internet giant's Google, Facebook as well as media houses.

Key Points

• 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.

Source: TH