Facebook Sales Beat Estimates on Digital Ad Revenue

The video discusses the uncertainty in 2021 due to potential economic recession and its impact on ad spending, which is closely tied to GDP growth. It highlights a shift from traditional to digital advertising as consumers spend more time online. The discussion also covers Facebook's regulatory challenges and expense management, emphasizing that despite increased costs, companies like Facebook and Alphabet can maintain their margins due to their scale and the growth in digital ad spending.

What is a potential risk to ad spending mentioned in the first section?

• Recession

• Increase in GDP growth

• Decrease in online consumer activity

• Rise in traditional advertising

What is driving the shift from traditional to digital advertising?

• Decrease in GDP growth

• Regulatory pressures

• Consumers spending more time online

• Higher costs of digital platforms

What is a secular driver for digital advertising growth?

• Increased offline advertising

• Consumers spending less time online

• Decrease in digital platform usage

• Shift of ad dollars to online platforms

What regulatory challenge is Facebook currently facing?

• Decrease in digital ad spending

• Cambridge Analytica scandal

• Increased offline advertising

• DOJ scrutiny

How do companies like Facebook manage increased regulatory costs?

• By offsetting costs elsewhere

• By increasing offline advertising

• By reducing their scale

• By decreasing digital ad spending