Coronavirus' Potential: $30 Billion Long-Term Reduction in Advertising Budgets

Response to Coronavirus fears could potentially reduce total US 2020 marketing communications investments by as much as 11 billion according to a new analysis of 62 marketing and media categories from The Myers Report Minimal marketing cuts the report says will be 1 billion If the viral threat accelerates beyond the first half of the year The Myers Report projects 2020 marketing investments will decline from projected yeartoyear growth of 18 percent to 01 percent representing 11 billion in lost revenues If the Coronavirus spread continues into the 4th quarter The Myers Report predicts a further potential downside of an additional marketing reduction of 11 billion in 2021 with advertising mediaamp8217s share of the budget cuts equaling 31 billionWhile mediaamp8217s share of total marketing budgets is 38 percent The Myers Report projects that media will absorb only 28 percent of total marketing cost reductions The most significant budget cutbacks are likely to hit directly to trade promotion direct mailemail experientialevent marketing mobile and apps advertising and cinema Beneficiaries The Myers Report says will be broadcast network television excluding potential Olympics and major event losses local newspaper advertising content marketing and public relations The worstcase 2020 scenario for media and advertising companies according to The Myers Report analysis is 3 billion in reduced ad spend from the projected 2278 billion to 2249 billion Even at this reduced level advertising will grow 48 percent over 2019 The Myers Report originally forecast 2020 advertising growth of 62 percentIn 2021 a nonOlympicsnonelection year compounded by an expected economic downturn The Myers Report has projected spending reductions of 62 billion 26 percent If the Coronavirus continues to impact marketersamp8217 confidence into 2021 advertising budgets can be expected to decline up to an additional 31 billionThe potential longterm impact of Coronavirus on the economic health of marketing is significant According to The Myers Report 2020amp82112025 analysis if the perceived threat of the disease is not dramatically reduced by summeramp8217s end total marketing spend over the next halfdecade could shrink by more than 75 billion with advertising and media representing nearly 30 billion of the total

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Coronavirus' Potential: $30 Billion Long-Term Reduction in Advertising Budgets

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Jack Myers

"About That with Carl Mayer": Involved Media Connected Audience Fall 2024 Report (Episode 5) - By Carl Mayer

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Coronavirus' Potential: $30 Billion Long-Term Reduction in Advertising Budgets

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