By Jonathan Easton
The effect of coronavirus on the advertising industry has been laid bare by a new report which expects a decline of nearly 12 per cent in 2020.
According to a report from ad agency GroupM, this reduction is set to be even worse than the 2008 financial crisis.
Television will be one of the worst-hit segments, with advertising expected to decline by 17.6 per cent this.
The most impacted will be out-of-home advertising like billboards which will drop by 25 per cent.
Digital advertising is expected to fare better, declining by only 2.3 per cent in 2020. This segment will account for 52 per cent of the advertising market – an increase from 48 per cent in 2019. The report noted that advertisers are increasingly turning to digital ads as they are cheaper than TV and easier to start and cancel.
Despite this dire outlook, GroupM said that the decline would still only be modest, with the small businesses which have been most affected by the coronavirus already only making u; a small part of the advertising industry.
Following the easing of lockdown and expected covid-19 vaccine, the market is expected to begin its recovery in 2021 with 8.2 per cent growth. https://www.digitaltveurope.com
