Its tough to turn anything on and not here about COVID-19 and how its ravaging the world. And for good reason, at the time of the writing of this post more than 684,000 people have been infected by the virus worldwide, 124,000 of them right here in the United States. COVID-19 has already gutted the market, erasing nearly all of the gains seen under the Trump administration, and the worst of the economic impact may be just beginning.
What does this have to do with advertising? Well, for starters, you need to have a company to advertise for! The AdAge staff put together a sector by sector analysis for "what a prolonged economic downturn could mean" for the advertising business. Its not pretty. Among other things, they warn of a 3%-30% revenue decline for ad agencies, reduction in digital media inventory prices, death of television as a medium, slowdown in adtech, and a massive decline in ad spending.
Of course we're in uncharted territory here so looking at 2008-2009 may not provide a guide for the future, but its probably the most relevant data we have. Here's to hoping the smart guys at the Fed help us avoid the most damaging effects of the economic downturn and the economy doesn't melt down. Until next time, keep advertising my friends.
https://adage.com/article/cmo-strategy/what-marketers-and-agencies-might-expect-if-recession-happens/2195251
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