The IAB US surveyed close to 400 buy-side decision-makers on the spending as a result of COVID-19 and its ramifications on their marketing budgets. According to the survey 74 per cent of media buyers, planners and brands feel the current crisis will have a bigger impact on advertising than the 2008 financial crisis. Additionally 70 per cent of buyers have already adjusted or paused their planned ad spend, while 16 per cent are still determining what actions to take.
Close to 24 per cent of respondents have already paused all advertising spend for the remainder of Q1 and Q2 while 46 per cent indicated they have adjusted their ad spend for the same time period. Seventy three per cent of buyers are indicating the coronavirus will have an impact on the Upfront 2020/2021 spend commitments and expect a 20 per cent decrease in Upfront spend vs their original plan.
Currently, digital ad spend is down 33 per cent and traditional media is down 39 per cent. We have heard that Google is expected to see a significant loss of their advertising revenues for the first time in the company’s history.