SEÑAL NEWS| RESEARCH #WEEK 24 - 2020

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COVID-19 IMPACT ON GLOBAL ADVERTISING

#WEEK 24 ∙ JUNE 2020

COVID-19 IMPACT ON GLOBAL ADVERTISING #WEEK 24 ∙ JUNE 2020

2020 ADVERTISING FORECAST

Pre-outbreak

SOCIAL MEDIA

Post-outbreak 20%

9.8%

ONLINE VIDEO

20.2%

5%

ONLINE DISPLAY

2.1%

SEARCH

12.4%

0.9%

GLOBAL

7.1%

-8.1%

ONLINE CLASSIFIED

2.5%

-13.8%

RADIO

1.8%

-16.2%

NEWSPAPERS

-19.5%

MAGAZINES

-21.5%

OUT OF HOME

-21.7%

Global ad spend is set to fall by almost $50 billion in 2020 as all sectors canceled or postponed media buys due to COVID19.

6.8%

-10.3%

TV

$50

14.3%

-5.9% -5.6% 5.9% 5.0%

CINEMA -31.6%

Source: WARC Data

GLOBAL ADVERTISING PURCHASE INDEX China

-8.1%

US

Japan

Euro Area

UK GROWTH

60 50

The advertising market will reduce by 8.1%, or $49.6 billion, compared to a previously forecast growth of 7.1%.

40 30 20 DECLINE

Apr-20

May -20

Mar-20

Feb-20

Dec-19

Jan-20

Oct-19

Nov-19

Sep-19

Jul-19

Aug-19

Jun-19

Apr-19

May-19

Mar-19

Feb-19

Jan-19

Dec-18

Oct-18

Nov-18

Sep-18

Jul-18

Aug-18

Jun-18

May-18

10

Note: A value above 50 indicates growth, a value below 50 indicates decline. Larger/smaller values signal strength. May data are fl ash results.

Source: IHS Markit Purchasing Managers’ Index.

2020 FORECAST BY ADVERTISER

Pre-outbreak

PHARMA & HEALTHCARE

3.7%

-2.1%

MEDIA & PUBLISHING

Post-outbreak

5.4%

-5.8%

HOUSEHOLD & DOMESTIC

10.5%

-6%

FOOD

4.9%

-7.7%

GLOBAL

7.1%

-8.1%

ALCOHOLIC DRINKS

6.9%

-8.8%

SOFT DRINKS

6.5%

-10%

CLOTHING & ACCESSORIES

4.6%

-11.1%

AUTOMOTIVE

6.8%

-11.4%

TOILETRIES & COSMETICS

2.9%

-12.8%

RETAIL

2.6%

-15.2%

FINANCIAL SERVICES LEISURE & ENTERTAINMENT TRANSPORT & TOURISM

11.8%

-18.2% 4.8%

-28.7%

9%

-31.2%

BUDGET CUTS PERCENTAGES

Traditional media outlets will be impacted the most, with TV spend reducing by 13.8% and newspaper ad buys going down 19.5%. Cinema ad spend is set to decline steeply, at 31.6%.

Source: WARC Data, Nielsen Ad Intel.

33%

Average media investment declined 23% in first half of 2020.

22%

16% 12% 9% 5%

3% 0%

Source: WFA/Ebiquity Crisis Clinic Webinar.

- >60%

-40-60%

In terms of regions, Latin America is set to see the steepest decline in ad spend this year, forecast to be 20.7% down, with Africa and the Middle East following.

- 20-40%

- 10-20%

- 0-10%

FlatYOY

+ 0-10%

+ > 10%

North America is forecast to see the least impact, at 3.7% down, with Europe expected to see a 12.2% fall.