Facebook and Google’s ad businesses appeared to be unstoppable, tripling over the last five years and accounting for more than half of online advertising expenditure. That long run appears to be over with the coronavirus pandemic and its impact on the global economy. Wall Street is now projecting that annual revenues for the two companies will decline for the first time in their histories, due in part to record low prices for advertising. Even so, prospects are even more dire for the overall digital advertising industry. Continue reading In Grim Ad Market, Even Facebook and Google See Declines

After posting its best profits over the previous four quarters, Amazon broke its streak; its Q2 profit rose 3.6 percent from a year ago, to $2.63 billion, missing analysts’ predictions. Profitability got a hit from the increased costs of shipping, as Amazon struggled to make one-day shipping the standard for all its Prime members. Chief financial officer Brian Olsavsky said that “when the dust settles, we will regain our cost efficiency over time.” Revenue was a bright spot, however, with performance above analysts’ expectations. Continue reading Amazon Revenue Strong, Record Profitability Streak Ends

As part of an industry shift that began in Europe, an increasing number of cable operators in the U.S. have been forming agreements with Netflix. Charter Communications is expected to join more than a dozen pay TV providers, including Comcast, in making the streaming service available through its set-top boxes. “Some U.S. providers could start selling the streaming service as part of their Internet and video packages,” reports VentureBeat. “Altice NV is trying that approach in France, and the company aims to extend the deal to the United States.” Continue reading Cable Providers Make Course Correction and Support Netflix

In a few cities last week, Snapchat introduced a new search tool that relies on machine learning to collect text and visual metadata, enabling users to find content, even from users they do not follow. Previously, users only saw Stories from others they followed or that Snapchat served up. This is Snap Inc.’s first major change to its Snapchat software since the company went public in early March; in January, Snap added a search function allowing users to search for friends and publisher content. Continue reading Snapchat Introduces Search Tool Based on Machine Learning

Amazon accounts for 15 percent of U.S. consumer online shares, according to the Department of Commerce. But Amazon’s actual reach in the retail market may be as much as double that due to an undetermined volume of sales transacted with third parties. Just as Walmart destroyed many smaller retailers, so may Amazon’s massive reach have an even greater disruptive impact. The comparison is apt because Amazon is now building pickup locations for groceries in Seattle that could open by the end of 2016. Continue reading Amazon’s Reach in Online Retail Much Bigger Than Estimated

Walmart told its investors that it was opening fewer brick-and-mortar stores in favor of investing in online operations, a strategy that was initiated when Walmart chief executive Doug McMillon paid about $3.3 billion for e-commerce startup Jet.com. That company’s founder, Marc Lore, will lead the initiative. The company predicts online sales will grow 20 percent to 30 percent in the next three years. Still, it’s a risky gambit since Amazon is increasing its dominance in the U.S. consumer space. Continue reading Walmart to Ramp Up Online Operation, Google Opens Pop-Up