The odds of the global market decline are becoming severe due to the ongoing Coronavirus pandemic and emergencies across APAC, US, and European marketplace
Recently, eMarketer has released its revised ad spend projections for 2020 – by lowing it to nearly 3%. The research firm confirmed that the global ad spend still expected to elevate as compared to last year. The media ad spends to grow by 7.0% to $691.7 billion in 2020 over 2019 – which is lesser from the earlier estimate of 7.4% to $712.02 billion. The amended spend forecast includes digital, print, TV, out-of-home, and radio advertising.
The world is in the dark about how far and swiftly COVID-19 will spread globally. The evolving consumer and B2B market behavior in this critical situation are pushing market leaders across all sectors to reevaluate their short-term marketing strategy, and advertising spends. It seems that the marketing trends are expected to take on more into digital channels and live-streaming.
Emarketer’s projections are grounded on the Chinese ad market, where the virus first impacted in late December last year. The updated estimate is primarily done due to the COVID-19 outbreak. However, the analyses are based on an expectation – things will pick up during the second half of 2020. For 2020, the media ad spending in China is expected to touch $113.7 billion, down from $121.13 billion – lowering the growth rate to 8.4% from 10.5%. After the US, China is the world’s second-largest ad market. Hence, it reflected in the downward global forecast.
The COVID-19 pandemic is affecting businesses and people alike. Lately, a majority of the people are trying to keep themselves informed and entertained in quarantine. Despite the rise in digital media consumption worldwide, many advertisers are still reluctant to spend. There is a constant dilemma around what could be lost funds if the supply chain shocks stop them from getting products to market. The study also reflects a slowdown in the Amazon ad spending – especially the third-party sellers have already tightened their cash flow.
Similarly, WARC forecasted that global media spend will grow by 7.1% in 2020, with the expectation that most brands will move their media budgets in the latter half of the year. As mentioned by James McDonald, Managing Editor at WARC in the company blog post, “Alphabet, Facebook, and Amazon stand to gain from a renewed focus on delivering short-term marketing goals in a crisis period, but a sizeable amount of their income relies upon small and medium-sized enterprises, and these are the advertisers that are perhaps most vulnerable to a sharp economic downturn.”