COVID-19 will certainly have an impact on public behaviors and spending, and thus where advertising dollars go. Since the virus spread is likely to impact consumer behaviors and potentially result in restrictions on large gatherings and events, experts think this would impact ad spending on cinema, out-of-home advertising, and even radio (because people no longer have a commute where they would normally listen to the radio).
So, if people are spending more time at home, their attention and time would be more spent on in-home streaming services, food delivery purchases, social media and mobile games. This is where we should then see increased ad spend.
Since economic slowdowns have traditionally led to reduced ad spends (as it's a relatively easy place to reduce spending in times of uncertainty or volatility), traditional advertising spend may be halted in response to the spread of the virus, but the impact is likely to pick up later in the year, and in these new areas where consumers are redirecting their time and attention. “Advertising’s relationship with GDP is strong, but a slowdown in economic output as a result of the virus will not necessarily translate into reduced advertising investment,” the World Advertising Research Center said in its Global Ad Trends report on ad spend.
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