Google’s U.S. ad revenue will drop for the first time ever due to coronavirus pandemic

Google’s U.S. advertising revenue is expected to see its first-ever drop this year due to coronavirus pandemic, said research firm eMarketer, which began modeling the business in 2008.

The new report shows the extent to which even Google’s robust digital ad business has likely suffered during the pandemic, which has taken an especially hard blow to some of the platform’s biggest advertisers in the travel industry. While advertising on YouTube is likely to grow, it will not make up for Google’s expected 7.2 percent decline in net U.S. search ad revenue this year, according to eMarketer.

The model also signals that Google’s digital ad rivals may be able to close in on the company’s No. 1 spot in share of digital ad spend in the United States.

Both Facebook and Amazon are expected to continue growing their U.S. advertising revenue this year, but at slower rates compared to previous years.

Facebook and Amazon’s ad businesses have less exposure to the travel industry compared to Google, which could help them weather the virus crisis.