Novel coronavirus has had a pronounced impact on the world’s economy. There are numerous measures economists and other experts have used to make that evaluation, but the simplest is to look at one of the most adversely affected industries: advertising. Buy rates are down across all platforms, though non-digital channels like television, radio, and print have been hit especially hard. And the implications of that trend are potentially far-reaching.
According to data gathered by the Interactive Advertising Bureau, more than 50% of advertisers have delayed or cancelled ad campaigns slated for spring and early summer of this year. The entertainment sector—traditionally a major player across ad channels—has all but ceased because of restrictions on movie theaters and concert venues, and that cessation includes hundreds of millions of advertising dollars evaporating almost overnight. Foodservice, which is typically another whale in advertising dollars, has had to change its relationship with customers and advertisers at the drop of a hat. The uncertainty over when (or if) our nation will revert to pre-pandemic business practices all but guarantees that ad spending will be down for the foreseeable future.
The magazine and (to a lesser extent) newspaper industry are both likely to see their declines accelerate as advertising spending contracts. Magazines depend heavily on ad revenue from the entertainment and lifestyle sectors which, as noted, are both tightening their purse strings in the current climate. Moreover, a significant percentage of magazine and newspaper sales occur at newsstands located in airports and train stations—and the travel industry has also been heavily impacted by COVID-19. In short, the largest print advertising channels are losing a prime source of revenue and one of their leading sales outlets.
If there’s a silver lining to be found, it’s the abundance of wildly affordable advertising space for those businesses and industries still running campaigns. Small businesses delivering essential services can afford to buy more (and more visible) ad space than they could just a few months ago. That translates to a level of exposure that would have been well beyond the budgets of those businesses even a few months ago. If your industry is still operating at anything close to full-tilt (or if you’re in one of the handfuls that have seen an increase in business since the start of the pandemic), now is absolutely the time to lock up a much relevant exposure as possible.
At IDMI.Net, we understand the necessity of visibility. We can help you increase your business’ presence on the web and across social media channels, as well as help you design branding/marketing materials and craft the message you send to your audience.