COVID-19 Advertising Impact
Delivered June 4, 2020. Contributor: Alexis Z.
Goals
Determine statistics on the number of advertisers that have cut or reduced spend as a result of the Coronavirus pandemic.
Early Findings
- 76% of companies plan to cut advertising budgets in 2020.
- 61% of marketers are altering their short-term advertising strategies, but only 9% are planning long-term changes. Most companies are moving to online advertising, shifting away from offline channels.
- 89% of multinational companies have paused their advertising campaigns due to the Coronavirus. Instead, 68% are running "crisis response campaigns."
- Experts expect global advertising budgets to decrease by 36% in H1 2020.
- However, video game retailers have increased their advertising since the beginning of the Coronavirus outbreak.
- 25% of companies report that they will increase marketing activity during the Coronavirus.
- Advertiser Perceptions found that "due to the coronavirus outbreak, advertisers will allocate 33% less to the 2020 Upfront market, with two-fifths (41%) believing that TV networks will have to abandon the Upfront advance-buying model completely. Additionally, half of those surveyed agree that they can replace linear TV reach with OTT/CTV and digital video ads."
- Advertisers are planning on decreasing their spend on traditional media the most, with an estimated 39% decrease from planned spending, with the largest decreases in print (38%) and linear TV (38%). Digital media advertising is expected to decrease by 33% from planned spending, "with the largest cuts being seen in digital audio (35%), digital display (34%) and digital video (32%)."
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