Affected by the epidemic, global advertising spending may fall by nearly 12% this year
Beijing time on the 23rd, WPP‘s media procurement group GroupM (GroupM) released a report on Monday that due to the economic impact of the new coronavirus pandemic, it is expected that global advertising spending will fall by nearly 12% this year.
However, the report pointed out that although the economic impact caused by the epidemic will be more severe than the 2008 financial crisis, this year‘s decline in advertising spending (excluding US political advertising) will remain moderate.
GroupM said that this is because the small businesses that bear the brunt of the new crown epidemic blockade account for a relatively small percentage of the advertising industry. In addition, many companies "are working hard to maintain vitality through e-commerce", which will also slow down the decline in the advertising market.
The most affected parts are expected to be TV commercials and outdoor advertising. GroupM said that this year‘s TV advertising spending is expected to fall by 17.6%, while outdoor advertising spending, excluding political advertising, will fall by 25%.
The agency also said that it is expected that global digital advertising spending will drop by 2.3% this year, and its share of total spending will rise from 48% last year to 52%.
The agency expects that the global advertising market will recover from next year, and advertising spending is expected to increase by 8.2% next year.