Digiday Research: 73% of ad buyers have clients ‘pausing’ spending
The coronavirus is upending marketing strategies, leading to a mass ripple effect across the industry.
A new survey by Digiday found that 75% of media buyers say their clients are reducing their marketing spend due to the coronavirus. In a separate question, 73% of buyers also said that clients were pausing their marketing expenditure on various channels almost entirely.
Brand marketers that were also surveyed separately also said the same: 58% of them said they will be reducing their marketing spending due to the coronavirus.
The full picture of some of the second-order effects of the pandemic that has disrupted every single industry is beginning to emerge.
Marketing plans, often put in place months in advance, have been completely disrupted. With major events like the Olympics getting postponed and a dearth of non-coronavirus related content on television, marketers are now beginning to reduce expenditure on television advertising. Some of that may move to online, but in many cases, it’s simply being cut.
“Projections are way off now, as are sales forecasts, we need to reanalyze the entire year to figure out how to make up revenue,” one brand marketer surveyed said. Another said that new product expansion has been completely halted, and will remain so until the economy recovers.
For agencies and the buyers that work for them, client advertising is significantly lowered, meaning lowered revenue projections, hiring freezes, pay cuts and in some cases, furloughs or mass layoffs. And for publishers, the effects are also clear: About 37% of buyers said they will not buy ads alongside coronavirus content.
Coronavirus dominates news coverage, and with levels of worry skyrocketing, plus a lot more people working from home, means more people are consuming news. But publishers have found it difficult to monetize this coverage with advertising: 88% of publishers expect to miss revenue forecasts this year and see a massive drop in ad revenue.
Horizon Media agencies ply new ground with incentive-based deals tied to compensation
Horizon Media agencies Big and Blue Hour cut an unusual incentive-based deal with DTC company Windmill, which lets client and agency make money if goals are reached.
How job seekers are standing out and staying top of mind during virtual job interviews
Candidates are competing for jobs on a computer screens so they are doing whatever they can to make their personalities and skills stand out.
As in-game ads expand, ad tech firms look to level up their services
As developers look to integrate advertisements more seamlessly into their titles, ad tech companies are rising to meet the challenge.
SponsoredHow the ad industry can use its borrowed time to future-proof first-party data solutions
Trent Lloyd, co-founder and head of brand solutions, Eyeota Google’s updated timeline for its Privacy Sandbox rollout, including its two-year delay of third-party cookie deprecation on Chrome, didn’t come as a surprise to many industry observers, given the limited utility of Google’s FLoC and the slow momentum of the Privacy Sandbox in the World Wide […]
‘We found a more engaged audience’: Why Kajabi is increasing its media spending on TV now
Kajabi, a SaaS company founded in 2011, isn’t alone in reconsidering advertising on TV as DTC brands have added more TV to the mix.
‘Marketers have to shift their expectations’: Despite turmoil in parts, Facebook’s ads business holds up against Apple’s privacy crackdown
Facebook’s resilience shouldn’t take anything away from the turmoil many of its advertisers are currently experiencing.