The big multinational brands plan to cut harder and hold back ad spending for longer, say marketers controlling annual global spend of $46 billion.
Investment is down in all channels, with television falling by a third, according to the second World Federation of Advertisers (WFA) Covid-19 Response Tracker.
Global ad budgets are now expected to be down 36% in the first half of the year, up from 23% on the first survey in March, and 31% for the full year.
But the marketers recognise the value of their agencies and almost two-thirds are looking at ways to support these partners during the pandemic.
The WFA conducted its second coronavirus survey over the last full week of April, with responses from senior marketers in 38 companies across 17 sectors.
The research found that 89% have deferred campaigns, up from 81% in March, with delays likely to last longer than previously planned.
More than half (52%) of the multinationals surveyed will now hold back ad spend for six months or more, compared to just 19% taking similar medium-term action in March.
While 68% have some kind of crisis response campaign now running, up from 32% in March, this activity will not compensate for the cuts to other campaigns.
While 62% agree that it’s critical for brands not “to go dark” during the crisis, they are still making deep cuts to spend overall.
TV, traditionally the biggest media channel, is expected to be down 33% globally across the first half of the year.
Print will be down 37%, out-of-home 49% and events 56%.
Digital is increasing its share because ad spend falls are less dramatic. Online video is expected to drop 7% and online display 14%.
Radio is expected to fall 25%, point of sale 23% and influencer 22%.
The WFA says global marketing teams see the situation as an opportunity to make radical changes to the way they operate both internally and in partnership with their agencies.
Most (92%) agree that this crisis will have a long-term impact on the way they operate and 84% agree that this is an opportunity to "rethink everything in terms of our marketing organisation", with the same number saying it has already accelerated digital transformation.
Almost two-thirds (63%) are now focusing on developing strategies for the immediate post-crisis as well as for the longer term.
Almost two thirds (73%) agree they will have to find ways to support agencies during the crisis.
“Marketing leaders are fully aware that the crisis is having a major impact on their teams and their external partners,” says Stephan Loerke, WFA'S CEO.
“Many are making significant efforts to support their agencies by finding projects for their key people to work on while spend is low or by changing their payment terms when they can.
“Our research shows that such efforts are widespread and reflect how much brands value the contributions that agencies can make to their businesses.”
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