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Facebook and Google Predict a Loss of $44 Billion in Global Ad Revenue

Due to the novel coronavirus pandemic, Facebook and Google may face a severe loss in their ad revenue in 2020

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he novel coronavirus pandemic can wipe out more than $44 billion in global ad revenue for the tech giants Facebook and Google in 2020 as digital advertising runs dry. Pixabay

The novel coronavirus pandemic can wipe out more than $44 billion in global ad revenue for the tech giants Facebook and Google in 2020 as digital advertising runs dry, a new report has predicted.

According to global investment bank and financial services company Cowen & Co., Google’s total net revenue is projected to be about $127.5 billion — down $28.6 billion.

Facebook’s ad revenue for 2020 is forecast at $67.8 billion — a decrease of $15.7 billion, Variety reported on Thursday, quoting Cowen’s data. However, Facebook’s advertising business is projected to “bounce back” in 2021, growing 23 per cent (year-over-year) to $83 billion, said the Cowen analyst team.

“For full-year 2020, Google will generate $54.3 billion in operating income (43 per cent adjusted EBITDA margin) and Facebook will pull in $33.7 billion (49 per cent margin),” according to Cowen’s forecast.

In a separate blog post, LightShed analyst Rich Greenfield said that “digital platforms are feeling the pain soonest, given the relative ease of pulling ad spend versus mediums such as television (who are likely to experience far more pain in Q2 than Q1)”.

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Facebook has admitted that its ad business has been adversely affected in countries severely hit by the novel coronavirus while non-business engagement like messaging has exploded which is affecting its services like Messenger and WhatsApp. Pixabay

Cowen has cut its full-year revenue forecast for Twitter by 18 per cent. “Amazon’s ad business, meanwhile, is ‘generally less exposed’ to the downturn than other large digital platforms because the company’s advertising is mostly related to product searches”.

Facebook has admitted that its ad business has been adversely affected in countries severely hit by the novel coronavirus while non-business engagement like messaging has exploded which is affecting its services like Messenger and WhatsApp.

“Our business is being adversely affected like so many others around the world. We don’t monetize 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,” said Alex Schultz, VP of Analytics and Jay Parikh, VP of Engineering.

Also Read- Restaurant Owners in U.S. Face Severe Loss due to COVID-19

With one-fifth of the world’s population now under lockdown and industries shutting operations amid global supply chain issues, the new coronavirus pandemic is set to deliver a sharp and deep economic shock, a new report has said.

According to analysts at BlackRock Investment Institute, market moves are reminiscent of the darkest days of the financial crisis, but they don’t think this is a repeat of 2008. “Stringent containment and social distancing policies will bring economic activity to a near standstill, and lead to a sharp contraction in growth for the second quarter”, it said. (IANS)

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Know About Where Do Employees Actually Gaze At During Video Calls

For the study, published in the journal Attention, Perception & Psychophysics, the team compared fixation behaviour in 173 participants under two conditions

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The phenomenon known as "gaze cueing," a powerful signal for orienting attention, is a mechanism that likely plays a role in the developmentally and socially important wonder of "shared" or "joint" attention where a number of people attend to the same object or location. Pixabay

 As more and more people use video conferencing tools to stay connected in social distancing times, neuroscientists from Florida Atlantic University have found that a person’s gaze is altered during tele-communication if they think that the person on the other end of the conversation can see them.

The phenomenon known as “gaze cueing,” a powerful signal for orienting attention, is a mechanism that likely plays a role in the developmentally and socially important wonder of “shared” or “joint” attention where a number of people attend to the same object or location.

“Because gaze direction conveys so much socially relevant information, one’s own gaze behaviour is likely to be affected by whether one’s eyes are visible to a speaker,” said Elan Barenholtz, associate professor of psychology. For example, people may intend to signal that they are paying more attention to a speaker by fixating their face or eyes during a conversation.

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“Conversely, extended eye contact also can be perceived as aggressive and therefore noticing one’s eyes could lead to reduced direct fixation of another’s face or eyes. Indeed, people engage in avoidant eye movements by periodically breaking and reforming eye contact during conversations,” explained Barenholtz.

People are very sensitive to the gaze direction of others and even two-day-old infants prefer faces where the eyes are looking directly back at them. Social distancing across the globe due to coronavirus (COVID-19) has created the need to conduct business “virtually” using Skype, web conferencing, FaceTime and any other means available.

For the study, published in the journal Attention, Perception & Psychophysics, the team compared fixation behaviour in 173 participants under two conditions: one in which the participants believed they were engaging in a real-time interaction and one in which they knew they were watching a pre-recorded

The researchers wanted to know if face fixation would increase in the real-time condition based on the social expectation of facing one’s speaker in order to get attention or if it would lead to greater face avoidance, based on social norms as well as the cognitive demands of encoding the conversation.

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As more and more people use video conferencing tools to stay connected in social distancing times, neuroscientists from Florida Atlantic University have found that a person’s gaze is altered during tele-communication if they think that the person on the other end of the conversation can see them. Pixabay

Results showed that participants fixated on the whole face in the real-time condition and significantly less in the pre-recorded condition. In the pre-recorded condition, time spent fixating on the mouth was significantly greater compared to the real-time condition. There were no significant differences in time spent fixating on the eyes between the real-time and the pre-recorded conditions. To simulate a live interaction, the researchers convinced participants that they were engaging in a real-time, two-way video interaction (it was actually pre-recorded).

ALSO READ: “Coronavirus Lockdown Will Teach People Many important Lessons About Life”, Says Actor Aparshakti Khurana

When the face was fixated, attention was directed toward the mouth for the greater percentage of time in the pre-recorded condition versus the real-time condition. “Given that encoding and memory have been found to be optimized by fixating the mouth, which was reduced overall in the real-time condition, this suggests that people do not fully optimize for speech encoding in a live interaction,” the authors wrote. (IANS)