Facebook Seeing Weakening in Ads Business Due to COVID-19 Pandemic

Facebook said in a blog post that it has seen a weakening in its ads business in countries taking aggressive actions to reduce the spread of COVID-19.

"We have received questions about revenue, so want to provide some context here too: 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," the company said.

"At the same time, 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.

During this emergency, we're doing everything we can to keep our apps fast, stable and reliable. Our services were built to withstand spikes during events such as the Olympics or on New Year's Eve. However, those happen infrequently, and we have plenty of time to prepare for them.

The usage growth from COVID-19 is unprecedented across the industry, and we are experiencing new records in usage almost every day. Maintaining stability throughout these spikes in usage is more challenging than usual now that most of our employees are working from home.

We are working to keep our apps running smoothly while also prioritizing features such as our COVID-19 Information Center on Facebook as well as the World Health Organization's Health Alert on WhatsApp. We're monitoring usage patterns carefully, making our systems more efficient, and adding capacity as required.

To help alleviate potential network congestion, we are temporarily reducing bit rates for videos on Facebook and Instagram in certain regions. Lastly, we're conducting testing and further preparing so we can quickly respond to any problems that might arise with our services."

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