Facebook warning shows threat to Google as ad budgets shrink

Google and Facebook derive much of their revenue from small businesses, thousands of which could shut if a deep recession sets in. — AFP

Google and other digital advertising companies are seeing revenue growth wither as marketers slash spending ahead of an expected recession triggered by the coronavirus.

The global pandemic and the ensuing slump in economic activity is crushing several industries that have been big buyers of Google and Facebook Inc ads, including online travel agents, automakers, restaurants and retail.