An executive walked gingerly around questions whether Snap's ad revenue is benefiting from the Facebook ad boycott. It’s "difficult to ascertain exactly what the impact of the Facebook boycott is on revenue,” said Chief Business Officer Jeremi Gorman on a Q2 call Tuesday. Gorman speculated some of Facebook’s lost ad revenue could be "related" to cuts in advertisers’ “overall content marketing budgets, just given the environment” of COVID-19. The Facebook hate-speech “conversation has opened the door for us” to “engage” with potential new advertisers, including with CEOs and chief marketing officers, he said. Facebook didn't comment Wednesday. The global health crisis “accelerated the shift to a more digital economy,” said Gorman. Snap’s advertisers “are exploring more ways to offer services digitally, including at-home fitness apps, online education programs, retail stores and restaurants offering online ordering and delivery services, and mobile-first banking and trading,” he said. The pandemic is encouraging business owners “to adopt digital marketing methods to engage with their customers globally,” said Gorman. Daily active users grew 17% year over year in Q2, with 238 million people using Snapchat “every day on average,” said CEO Evan Spiegel. Ad revenue grew 17% to $454 million, despite “extreme dislocations,” said Spiegel. As hard-hit industries like travel and theatrical entertainment “pull back spend,” he said, "we have transitioned to helping them plan for a future recovery led in part by our audience." Other industries like streaming and e-commerce that have thrived from “some of the COVID-related changes in consumer behavior” have been “leaning in as advertisers on our platform,” he said. “The path to this outcome was not a straight line,” said Chief Financial Officer Derek Andersen. “The operating environment has remained challenging as COVID-19 continues to impact macroeconomic conditions, and the businesses of our advertising clients." Advertisers hardest hit in the pandemic are those that “rely on in-person interaction with their customers” he said. The stock closed down 6.2% Wednesday at $23.20.

Large blocs of consumers think many COVID-19 "behaviors" in shopping and lifestyle will stick long after the crisis passes, Joe Beier, GfK Consumer Insights executive vice president, told a National Retail Federation virtual event Tuesday. GfK canvassed 1,000 U.S. consumers last month, finding 69% “definitely” or “probably” agree that working from home is here to stay. Home delivery “spiked” during the crisis and is expected to have “pretty strong staying power,” said Beier. “Besides safety, convenience and ease are also kings" in shopping, the analyst said. "Consumers tell us they want to continue to have access to most of their shopping resources 24/7. We’re definitely in an always-on society.”

The U.S. cloud gaming market could generate nearly $3 billion in annual subscription revenue, Parks Associates reported, with 30% of broadband households interested a service. Three-quarters of U.S. broadband households play videogames for at least one hour per week; gamers play for an average 22 hours. PC gaming has had the biggest gains during the pandemic. It and could generate more revenue, via service stacking and add-on sales, “if the offerings are designed and targeted correctly,” said analyst Kristen Hanich.

Best Buy’s Q2 quarter-to-date sales were up 2.5% through Saturday, including 2% in the U.S., said the retailer Tuesday. Sales are up about 15% from last year since stores started reopening mid-June, it said. Best Buy is raising hourly pay 4%, effective Aug. 2, it said: “After the 4% hourly pay increase, employees who are not yet at $15 per hour will have their pay increased to the $15 per hour starting wage.” The stock rose 4.1% to $94 at 5:13 p.m. EDT.

Broadnet Teleservices asked the FCC to provide Telephone Consumer Protection Act clarity in light of the Supreme Court’s decision in Barr v. American Association of Political Consultants (see 2007060052). In 2015, Broadnet asked (see 1509300043) the FCC for clarity that TCPA doesn’t apply to calls made “by or on behalf of federal, state, and local governments when such calls are made for official purposes.” COVID-19 “and the challenges and changes it has imposed on communities has highlighted the importance of state and local government officials being able to contact their constituents without concern for potential liability,” said a filing posted Tuesday in docket 18-152.

Internet traffic at content delivery provider Limelight Networks reached “record levels” in Q2 as global economies locked down for the pandemic, said CEO Bob Lento on a Monday investor call. Cisco expects 26% traffic growth this year, including 35% growth in internet video traffic, he said: “We’re exceeding that.” Amid COVID-19's “increased global reliance” on the internet and content delivery, Limelight had “good traction” with VOD customers and “some live events are starting to return,” said Lento. Limelight’s “participation” in the April Peacock launch to Comcast subscribers and the May debut of HBO Max helped drive higher traffic in Q2, he said. Expanding network capacity is Limelight’s top “strategic imperative,” said Lento. Its goal entering 2020 was to achieve 100 terabits per second of capacity, he said. “We expect to meet or exceed that goal even while having experienced some supply chain issues and travel and operational restrictions resulting from COVID-19.” Limelight upgraded 2020 revenue guidance to $230 million-$240 million from $225 million-$235 million in the April forecast “despite the continued uncertainty of where this pandemic takes us,” said Chief Financial Officer Daniel Boncel. There are “more unknowns than knowns” about the pandemic and its economic impact, said Lento. “We don’t know what the future holds in terms of the spread and severity of the COVID-19 virus and its effect on the lifestyles of people around the world.” No single livestreaming event like the NFL is “that material from a revenue perspective,” said Lento. “But when you string them all together all over the world every day, it is a material part of our business and right now that was zero in Q2 or pretty close to it.” The stock closed 8.6% lower Tuesday at $6.99.

Logitech rode the COVID-19 stay-at-home wave in fiscal Q1 ended June 30, posting a 25% year-on-year sales hike to $792 million, it said Monday. Sales of video conferencing equipment soared 70% to $130 million; webcam revenue jumped 116% to $60.9 million. It's adding capacity to meet demand for webcams to overcome component shortages resulting from factory shutdowns in Asia, said CEO Bracken Darrell on a call (see that and other materials here). The company expects current quarter supply to improve, though Darrell expects the “underlying market tailwind to continue for some time.” Logitech raised its fiscal 2021 outlook from mid-single digits to 10%-13%, but Darrell said: “COVID shutdowns and a related economic slowdown will likely create uncertainty in the quarters, and perhaps even the year to come." Among trends the CEO cited are video calls replacing audio calls, esports that will “become bigger than conventional sports, and the “billions” creating content as movie theaters and live entertainment venues are closed. Some trends were underway, said Darrell, citing work-at-home Fridays, the popularity of esports and creators posting online in “democratization” of content. “Video everywhere” seemed like a long way off when Logitech identified it as a company direction several years ago, he said: “Because of COVID-19, video calls now, for most people, have simply exploded.” Trends will continue post-pandemic, he maintained, citing Siemens saying last week it will let its 140,000 employees “work from anywhere” two or three days a week.

Retail consumer tech sales this year will fall 2.2% from 2019, the first decline since 2009, said CTA’s biannual forecast Monday. Tech industry sales revenue is projected to be $406.8 billion in 2020 “as consumers struggle with economic uncertainty from the COVID-19 pandemic,” said the association. The segment’s largest category -- smartphones -- will take a 6% hit this year, dropping to 153 million shipments worth $72 billion, said CTA. More than 14 million 5G smartphones are seen shipping in 2020, generating $11 billion in revenue. Software and streaming service categories are on track to reach a record of $86 billion, 14% growth, benefiting from stay-at-home orders, said CTA. Consumer spending on video streaming services is expected to hit $27 billion, up 23%. Audio is tracking toward $8 billion, up 21%.

Even consumers more inclined than others to return to stores during COVID-19 are buying online more than ever, Sucharita Kodali, Forrester Research vice president-principal analyst, told the National Retail Federation Monday. Forrester estimates about 40% of U.S. consumers are in that category, compared with 53% who prefer to continue sheltering at home and are fearful the economy is reopening too quickly. Of those who say they want to go back to stores, 30% "are choosing to purchase online,” said Kodali. “Almost half of them are purchasing their groceries online. This is an important observation because among people who may want to go back to stores, you’re still seeing them consuming online.” That’s the factor that’s “certainly driving e-commerce forward, but continues to be a challenge for physical stores,” the analyst said. Forrester found 37% of consumers “don’t want to pay anything” even for a same-day transaction. Another 22% said they are willing to pay $3-$6 for same-day delivery. With the e-commerce supply chain stretched to the limit during the pandemic, Forrester estimates 22% of consumers experienced late deliveries during the crisis, said Kodali. “That has also led to greater dissatisfaction with players like Amazon.” Of the Amazon Prime members Forrester canvassed, 24% said they were “frustrated” with the service, she said. Dissatisfaction was 10 points higher among Generation Z respondents, she said. Amazon didn’t comment Monday. Consumer resentment toward Amazon during the crisis “has provided oxygen” for other e-commerce giants like Walmart and Target, said Kodali. Though Amazon’s Q1 e-commerce sales were 25% higher than in the 2019 quarter, Walmart’s were up by 77% and Target’s 141%, she said.

Some in the tech sector backed fighting Nokia’s July 2 International Trade Commission complaint on banning imports of Lenovo laptops, tablets and desktop PCs for allegedly violating five patents. That would block access to affordable Lenovo Chromebook computers, said Google Friday (login required): As most schools worldwide “have begun adopting online learning in the wake of the coronavirus pandemic, demand for mobile computing devices from many countries’ K-12 education sectors has been rising with Chromebooks currently seeing the highest shipments.” The Computer & Communications Industry Association commented against Nokia’s assertion that excluding Lenovo PCs won’t harm the public health and safety. “That does not reflect modern society,” said CCIA. “Computers are no longer optional entertainment devices.” They're the “main or even exclusive portholes through which nearly every American interfaces with nearly every aspect of modern life,” especially during the COVID-19 pandemic, it said. Four of Nokia’s “asserted” inventions on video compression are H.264 “standard-essential patents” (SEPs), wrote Lenovo in docket 337-3466. The fifth describes user interfaces for better information searches through communications devices. Nokia committed to license SEPs to anyone on reasonable and nondiscriminatory terms, said the PC maker. The FTC warns such SEP-based exclusions “may adversely affect competitive conditions and harm consumers,” said Lenovo, citing a March 2011 FTC report on the “evolving” intellectual property marketplace and the need to align patent "remedies" with competition. The report recommended the ITC “consider these adverse effects in evaluating the public interest impact of proposed remedial orders,” said Lenovo. Nokia didn't comment Monday.