Dive Brief:
- Following weeks of coronavirus-related spending cuts, 26% of advertisers surveyed April 16-20 said they expect to increase ad spend by June 30, according to a new report from Advertiser Perceptions shared with Marketing Dive. Overall, 52% expect to spend more this summer — 18% in July, 15% in August and 19% in September. A mere 5% of advertisers said they won't increase ad spend until Q1 2021.
- In the meantime, cutbacks continue. Half of advertisers said they had canceled a campaign pre-launch in the previous two weeks, up 14% from a prior Advertiser Perceptions survey; 73% advertisers reported holding a campaign launch, up 17%, and 42% have stopped all new advertising until later in the year, a 20% lift over the prior report.
- Advertisers are only committing to media planning less than three months out, halfing the typical window for media planning.
Dive Insight:
While many advertisers have cut spending during the coronavirus pandemic, a significant number anticipate reopening the spigots in Q3, according to the latest Coronavirus Effect on Advertising biweekly report. For the report, Advertiser Perceptions surveyed 151 advertisers, with 36% of responses from marketers and 64% from agency executives.
The return to spending is good news for media companies that depend on advertising sales for revenue, but the findings also point to how the recession brought on by the health crisis is likely to have a longer-lasting impact as the window for media planning halves to 90 days or less. The economy is a key focus for advertisers, with 69% of now saying they are using the economy to determine if and when they will run a campaign, up from 53% in the previous survey. Additionally, 43% will resume advertising after revenues have stabilized for one quarter, up from 27%.
As a result, campaigns for back to school and the holiday season — which would likely be in the works beginning this time of year — are still up in the air as advertisers wait to see when schools reopen and how the economy responds.
Advertisers also continue to struggle with pinpointing the right communication strategy during the health crisis, with approximately half saying they are unsure, per Advertiser Perceptions.
