Advertisers are changing their digital ad spend due to the ongoing coronavirus crisis affecting the businesses and the economy. The Dubai based Interactive Agency Bureau(IAB) that empowers GCC based media and marketing industries surveyed the marketing teams of nearly 30 Agencies and Clients between April 6 to April 12, 2020, for the impact of COVID-19 on Advertising.
Here are some main points from the report:
The findings suggest a huge downturn with 48% of respondents expect less than 30% of budget cuts in April and 41% of respondents see a decline in ad-spending or paused post-June.
With the Holy month of Ramadan expected to begin within weeks, there are still 34% of respondents who are yet to take decisions on Ramadan budgets while 51% are unsure about the directions of second-half budgets in this unprecedented period. This suggests that the majority of marketers are in ‘wait-and-see’ mode.
The report also states that 59% of respondents are suggesting that they will significantly increase the ‘Performance-based’ ad spend. This indicates marketers are in favour of Performance media in the second half.
Even though advertisers might be working on leaner budgets but are opportunistic to see 17% growth in Digital display in the second half. They also expect a rise in the audience and programmatic buying.
Lastly, 77% of respondents see COVID-19 will have a significant impact on the MENA advertising market than the 08/09 financial crisis.
Take a look at the pictorial images of findings and methodology from the report.
There is a wave of optimism about the second half right now and are looking ahead of a post-pandemic world whenever it is possible. Definitely, there is a pendulum swing in the minds of advertisers whether to decrease ad spend or pause it entirely to what we hope for a clear picture very soon.