Businesses must be mindful of the long-term effects of the pandemic and a possible recession that might follow.
This article highlights the pros and cons of a “bad ad economy” that’s gaining prevalence due to the coronavirus pandemic. To work around this, marketers are trying to manage their expectations and expenses.
Magna had earlier forecasted ad spend to grow 6.6% in 2020. This is expected to decrease by 2.8% this year to touch $217 billion. GroupM’s Brian Wieser points out that as businesses cut costs, they would do so with layoffs and with reductions in advertising.
However, Boston University’s Questrom School of Business’ Garrett Johnson says, “There’s an opportunity now for some companies to steal market share away from competitors, and advertising can help there”. Overall, marketers would need to prepare for pent-up demand when normalcy resumes.
[4 minute read]