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Coronavirus Ad Spend Impact: Buy-Side

Coronavirus Ad Spend Impact: Buy-Side

Michael Beach
April 03, 2020

Share of buy-side marketers making Q2 ad spend changes according to the IAB:
1) Adjusted ad spend – 46%
2) Paused – 24%
3) TBD – 16%
4) No adjustment – 14%

Ad spend impact compared to the original plan (March/April):
1) Digital video – ↓ 37%
2) Linear TV – ↓ 41%

Other (smart) tactical changes:
1) Audience targeting – ↑ 38%
2) CTV/OTT – ↑ 35%

YoY ad spend change for 2020 according to MAGNA:
1) Digital video – ↑ 8%
2) National TV – ↓ 13%
3) Local TV (excluding politics) – ↓ 14%
4) Local TV (including politics) – ↑ 1%

Potential impacts by vertical according to MAGNA:

Ad spend change by vertical during financial crisis according to Kantar:
1) Pharmaceuticals – ↑ 4%
2) Food & Beverage – ↑ 4%
3) Telecom – ↑ 2%
4) Restaurants – ↓ 3%
5) Personal Care – ↓ 8%
6) Direct Response – ↓ 12%
7) Local services – ↓ 13%
8) Retail – ↓ 15%
9) Financial Services – ↓ 18%
10) Automotive – ↓ 23%

Comparison to 2008-09 financial crisis:
1) Substantially more negative – 44%
2) Somewhat more negative – 30%
3) Roughly the same – 9%
4) Somewhat less negative – 14%
5) Substantially less negative – 4%