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B&T > Marketing > Canary Down The Ad Mine: Marketing Hit Hard During Pandemic, But Showing Signs Of Recovery
Marketing

Canary Down The Ad Mine: Marketing Hit Hard During Pandemic, But Showing Signs Of Recovery

Staff Writers
Published on: 16th June 2020 at 11:18 AM
Staff Writers
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Campaign budgets during the coronavirus pandemic have been slashed by up to 75 per cent, it has been revealed by a new global study into the early impact of COVID-19 on the marketing industry.

The Canary Report, published by market research platform Glow and strategy specialists Planning Dirty, breaks down how budgets, campaign activity and new business pitches have been affected across over 35 categories to give agencies and marketers a real-time view of how the pandemic is impacting their industry.

The study was contacted globally, with 50+ countries covered and the USA, UK and Australia constituting 52 per cent of respondents.

Glow CEO, Tim Clover, said, “The study gives a unique snapshot of how different categories have responded to the crisis in terms of campaign budgets and activity, but also crucially reveals which areas new business is coming from and, therefore, where some optimistic green shoots are starting to emerge.”

According to the study, which represents 110,000 employees in planning and strategy roles across the world, budgets have fallen 25 per cent on average, with campaign activity contracting by 11 per cent and pitch activity down 15 percent.

Sectors facing the harshest cuts are those relating to human movement, socialising and entertainment, with significant reductions in Tourism (-75 per cent ) and Hospitality (-42 per cent ), while campaign budgets in Auto have been slashed by half.

But it’s not all doom and gloom. According to the research, conducted last month, many agencies are actually pitching more.

Clover said, “While the focus of activity appears to be more tactical than strategic, those working in Food and Drink, Government, Finance and Retail are starting to see more new business opportunities, which is great news.”

The study also shows that those sectors put into deep freeze during the lockdown are now starting to pick up again as restrictions are cautiously being lifted worldwide.

Planning Dirty’s Julian Cole said: “This report is the canary down the mine for the marketing and advertising industry. Its primary aim is to provide a useful benchmark for brands and agencies as the world comes out of lockdown and back to work.

“Marketers large and small now have a reliable barometer to help them forecast within the categories they operate, and to better understand how their business is performing compared with industry ‘norms’ in these abnormal times.”

 

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Staff Writers represent B&T's team of award-winning reporters. Here, you'll find articles crafted with industry experience spanning over 50 years. Our team of specialists brings together a wealth of knowledge and a commitment to delivering insightful, topical, and breaking news. With a deep understanding of advertising and media, our Staff Writers are dedicated to providing industry-leading analysis and reporting, both shaping the conversation and setting the benchmark for excellence.

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