Advertisers will resume spending this quarter with lower budgets and higher expectations of media. This is according to a report from market research company Advertiser Perceptions titled "The Coronavirus Effect on Advertising".The study saw 150 interviews conducted over a period of five days from 10 to 15 June 2020. Of the respondents, 35% were marketers and 65% come from agencies.
In the report, the company found that more than half of the advertisers plan to prioritise digital media to drive its advertising efforts in the second half of the year. Among the respondents, 75% said they will use paid social media and display ads, 70% said they will use paid search, and 64% said it will use digital video.
The report also said that with so much changing so fast and so inconsistently, advertisers are looking to media owners for more answers than ever – from how people are adapting to COVID-19 effects globally to how the advertising value equation changes accordingly to what messages and ad formats will work best for brands now.
Media platforms and outlets must be ready to provide this intelligence based on advertiser type. For example, 61% of advertisers want insights into how COVID-19 is changing the advertising landscape. Advertisers are looking to media to inform their strategies and KPIs, not just identify relevant connection opportunities.
Additionally, the report found that three in five advertisers will end up spending less in 2020 with budget declines of 12% in Q3 and 7.5% in Q4 compared to the same period a year ago. Advertisers will also look to media for broader, deeper insights into consumer attitudes and behavior as well as increased flexibility around rescheduling and reallocation.
Most of the advertisers interviewed also said they are also choosing to keep their money invested in media companies despite global sporting events such as the Olympics being cancelled or postponed. The report also showed that 70% of the advertisers who initially allocated funds for such events have plans to keep the funds with the same media company. Those who are opting to keep the funds said they will be shifting the funds to sports programming later in the year, moving it to non-sporting programming, or simply not allocating it at the moment.
Lauren Fisher, VP/business intelligence at Advertiser Perceptions, said perhaps the greatest impact of COVID-19 on media is the way it will be bought and sold. “Everyone now operates in a faster-moving marketplace, and that means two things. First, advertisers need more insights into changing consumer appetites and connection opportunities. Second, they need the ability to change plans and buys more often," she added.
Fisher also said that all signs point to increased spending on connected TV and over-the-top media, as well as eCommerce, with an emphasis on more integrated, holistic programs. She added that in the uncertain economy landscape, the right message at the right time becomes even more important. "Media that answer these critical questions will gain in engagement, spending and trust," Fisher said.
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