The withdrawal from the market by advertisers in April may be worse than forecast, according to analysis of the US market by industry forecasters eMarketer.
A survey March 17-20 by Advertiser Perceptions found seven in 10 thought there would be a “major impact” on second quarter ad spend.Two weeks later, that share rose to 86%.
“Hopes for a quick, V-shaped recovery are all but gone,” say analysts at eMarketer.
Among those predicting a sharp upturn in advertising post coronavirus crisis is Martin Sorrell, the founder of WPP and the head of digital player S4 Capital.
He sees the second quarter of 2020 difficult, the third quarter less so but then a recovery in the final three months of the year.
However, this latest survey data reported by eMarketer shows advertisers seeing a major effect on their ad spend extending into the third quarter (43%) compared to 28% two weeks earlier).
Another survey, by the IAB in the US, shows most (74%) buy-side decision-makers in America think the coronavirus will have a bigger impact on advertising than that of the global financial crisis.
The IAB surveyed 400 media buyers, planners and brands to get an indication of ad spend and messaging strategies during the crisis.
The US data shows 70% of buyers have already adjusted or paused their planned ad spend, while 16% are still determining what action to take.
In Australia, a poll in early April by IAB Australia of 78 media agency and marketing executives showed 86% of brands have changed their digital ad investment over the last month.
More than half are reviewing advertising plans at least daily. One in five (21%) indicated they have paused all their ad spend, while 57% have decreased some of their spend and 15% have either increased or maintained their spend.
Of those who have decreased spend, 31% reported they are dreviewing whether they will be in a position to invest later.
“The Australian advertising market is in step with the global experience, with some brands simply not in a position to spend at the moment and the majority of other brands adjusting their spend, creative messaging and tactics to suit the current market," says Gai Le Roy, CEO of IAB Australia.
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