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State of the Screens

Coronavirus Ad Spend Impact: Buy-Side

By April 3, 2020No Comments

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%

Global GDP vs. global ad spend according to MAGNA:

Consumer spending vs. ad spend according to Kantar:

Video: How Virus Will Hit Ad Spending: SMI’s Fennessey

Podcast: GroupM’s Brian Wieser: ‘Every brand should figure out how to be useful’

More #1: Advertising Economy 2021: Recession or Depression?

More #2: Coronavirus Quarantine Boosts Streaming Video, but Not Advertising Yet

More #3: Look Who Top 60 TV Advertisers Are: What Happens in a Pandemic/Recession?

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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