The COVID impact on top Anglo markets is 28.2%: SMI | radioinfo

The COVID impact on top Anglo markets is 28.2%: SMI

Wednesday 22 July, 2020

Media advertising markets in the Australian, US, NZ, UK and Canadian are averaging a 28.2% decline in advertising expenditure in the first wave of the COVID-19 pandemic, according to Standard Media Index.
 
SMI, which collects and publishes media Agency payment ad spend data, based the analysis on its collection of advertising payment data from its multinational and independent media Agency partners in the US, UK, Australian, NZ and Canadian markets from the start of the pandemic in March to the end of May.
 
SMI Global CEO James Fennessy said that while the actual levels of decline varied by 14.3 percentage points across the five markets, the one common factor was that all markets reported record ad spend declines in the three-month period.
 
TV and Digital media are the largest in terms of share of national marketer spending.
 
Fennessy said “We can see continuing declines in Programmatic ad spend through this crisis in the US and Australian markets, but this form of Digital advertising is continuing to at least grow share in the UK and NZ Digital media,’’.
 
“And again we can see different Product Categories driving those Programmatic trends in each of those markets.’’
 
Fennessy said it was also interesting to note the varying Category trends across each media market as growth in Technology-related categories was evident in the COVID period in NZ, Australia and the UK while in the US the Pharmaceutical category was the only significant market to report higher media investment.
 
“But it is clear there’s one category with universal declines in ad spend and that’s of course the Travel market, with the value of Travel category advertising bookings falling 78% in the US, 61% in the UK and Australia, 65% in Canada and 76% in NZ. In every market, the loss of such a vibrant category has severely impacted many media,’’ he said.
 
But there is good news, with SMI’s data in all countries showing strengthening advertising demand in June.
 
“The key message here is that the advertising markets are moving off the bottom and are beginning to rebuild. SMI will continue to work with our subscribers and Agency partners to help them move through the changing media landscape and grow as the media world tries to return to a new normal,’’ Fennessy said.

 
In other news about changes in media advertising  during the pandemic an article titled The Evolving Role of Digital Media on New Product Launches, using Nielsen data, Giles Watts writes:

The novel coronavirus (COVID-19) pandemic has also contributed to consumers’ increased adoption of online shopping and their increased online media usage. While many companies are cutting their marketing budgets during these times, digital marketing channels have been leading the way above all others in terms of spending. Many manufacturers are redirecting their in-store and below-the-line (BTL) budgets into digital and trying to find the best possible ways to reach their consumers without having any in-person touchpoints...

According to Nielsen custom analysis, on average, brands realize 47% of their marketing efforts after one year. With global advertising spending estimated to be back to growth in 2021 (12.9% growth), you should not be cutting your advertising efforts, especially not for new products... As markets become more sophisticated and media saturates, digital ROI looks similar to traditional TV ROI.

Over time, saturated and more sophisticated digital markets (like China) see a similar ROI for digital and traditional media. This is due in part to a significant increase in prices for purchasing digital content to appropriately capture its value.

The most common digital vehicles are limited in how much information they can communicate, making them less effective for helping launch new products (which often need more education).

Let’s take banners, for example. Banner ads operate similarly to a TV “tag”: A reminder of a product’s existence, but not much more. And while they perfectly serve the needs and purposes of established brands, they may not be a great fit for new products, which need to explain benefits and establish credibility...

Reach and creative remain the largest differentiators for advertising performance, which is why it’s so important to have a compelling proposition.

In addition, marketing campaigns should aim to reach people across multiple channels to drive product trials.

 

 

 

 


Subscribe to the radioinfo daily flash briefing podcast on these platforms: Acast, Apple iTunes Podcasts, Podtail, Spotify, Google Podcasts, TuneIn, or wherever you get your podcasts.

Ask Alexa: 'Alexa, play radioinfo flash briefing’ or ask Google Home: "Hey Google. Play the latest Radioinfo flash briefing podcast.”


 
  Post your job, make sure you are logged in.

 

 

Post a Comment

0 Comments

Log InYou must be logged in to post comments.
radioinfo ABN: 87 004 005 109  P O Box 6430 North Ryde NSW 2113 Australia.  |  All content © 1996-2021. All Rights Reserved.