A survey by the Interactive Advertising Bureau asked 390 media buyers, media planners, and brand executives about their U.S. advertising plans for the rest of 2020 as a result of the coronavirus pandemic.
I discussed some of the findings during Episode 301 of the Beyond Social Media Show podcast.
These are some remarkable numbers. This is from Eric. Eric Savitz at Barron’s reported on it. The Interactive Advertising Bureau released a survey of 390 media buyers, planners, brand executives about what their advertising plans are for the rest of this year.
Nearly a quarter have paused all advertising spending through the second quarter. Another 46% are reducing their budgets. The 44% say the impact of the current slowdown will be substantially worse than in 2008-2009. Another 30% say it will be somewhat worse.
For the March to June period, digital ad spending is down–will be down 33% compared with the original plans. The outlays on traditional media down 39%. The first two months of that period are expected to be–show even deeper, deeper declines with spending off 38% on digital and 43% for traditional media.
For May and June, 28% of the respondents expect to cut digital media spending and 35% reduction in traditional media. The…the group expects steep spending reductions in every category, including digital display, video and audio, linear TV, terrestrial radio, print, out-of-home and direct mail.
The least affected will be paid search; spending, though, is expected to fall 30% in the March to April period from previous plans and outlays for May and June are seen to fall 21%.
But the biggest hit is being taken by out-of-home advertising, which is projected to fall 51% in the first two months and 41% in May in June. So this is just devastating to the ad spending budgetsTranscript from Episode 301 of the Beyond Social Media Show podcast
The research found that nearly a quarter have paused all advertising spending through the second quarter.
Another 46% are reducing their budgets.
The impact on the second half of the year is expected to be more modest, although most say that it is too early to know.
44% say the impact of the current slowdown will be “substantially” worse than in the 2008-09 crisis, and another 30% say it will be “somewhat” worse.
The survey found that for the March-June period, digital ad spending is down 33% compared with original plans, with outlays on traditional media down 39%.
The first two months of the period are expected to show even deeper declines, with spending off 38% on digital media and 43% for traditional media.
For May and June, the survey group expects a 28% cut to digital media spending, and a 35% reduction in traditional media.
IAB expects steep spending reductions in every category, including
- digital display,
- video and audio,
- linear TV,
- terrestrial radio,
- out-of-home, and
- direct mail.
Paid search will be least effected, but even there spending is expected to fall 30% in the March-April period from previous plans.
Outlays for May and June are seen falling 21%.
Taking the biggest hit is traditional out-of-home advertising—billboards and the like—projected to fall 51% in the first two months, and 41% in May and June. Get the whole report.