Impact of COVID-19 on Marketing Industry
Determine how the marketing industry is shifting in response to COVID-19. Specifically, identify which marketing channels or tactics are being used more frequently, how marketing campaigns are being increased or paused, or other industry impacts related to the Coronavirus pandemic. For each identified shift, determine why the shift is important and how it is expected to influence the industry over the next few years.
Decreased Ad Spending
- Advertising and marketing expenditures are expected to decrease as a result of the COVID-19 pandemic, as businesses close or lose revenue and need to cut costs.
- Campaigns have also been paused as advertisers wait for a broader picture of the impacts of COVID-19 and adjust messages.
- Experts predicted $26 billion in lost revenue for the advertising industry due to COVID-19, with ad-spend projected to decrease by 50% across all channels.
- Experts predict that this decrease will continue throughout 2020 and 2021, and that businesses will ask advertisers to provide "more tangible evidence of the scope of their advertising."
Traditional Out-Of-Home Advertising
- Traditional out-of-home advertising has been the most affected by the Coronavirus, experiencing a 51% spend decline due to the virus in March and April.
- This decline will continue through May and June, although less severe, at 41% decline.
- This is because consumers are staying home during the virus and are not able to view billboards and other OOH displays.
- Experts predict that in the near future, OOH roadside advertisements will recover the fastest, as consumers travel by car instead of air.
Proposed next steps:
You need to be the project owner to select a next step.