• Marketing Land
  • Sections
    • CMO
    • Social
    • SEM
    • SEO
    • Analytics
    • Display
    • Retail
    • MarTech
    • Resources
    • More
    • Home
  • Marketing Land
  • CMO
  • Social
  • SEM
  • SEO
  • Analytics
  • Display
  • Retail
  • MarTech
  • Resources
  • More
  • SUBSCRIBE

Marketing Land

Marketing Land
  • CMO
  • Social
  • SEM
  • SEO
  • Analytics
  • Display
  • Retail
  • MarTech
  • Resources
  • More
  • Home
  • Newsletters
  • Home
Display Advertising

Coronavirus: Emarketer lowers global ad spend projections for 2020

The revised model assumes business will bounce back in the second-half of the year -- and that the Summer Olympics will go on.

Ginny Marvin on March 20, 2020 at 12:23 pm
  • More

Worldwide ad spending is still expected to grow compared to last year, says research firm eMarketer, but it has lowered its growth projections by nearly 3%. Worldwide media ad spend will increase by 7.0% to $691.7 billion in 2020 over the prior year, down from the earlier growth estimate of 7.4% to $712.02 billion.

The updated spend projections, released Thursday, include digital, directories as well as print, out-of-home, TV and radio advertising.

Why we care

Changing consumer and B2B behavior during this outbreak is causing marketers in all sectors to reevaluate their near-term advertising spend and allocations. The most recent estimates by analysts and research firms are based on an expectation that things will pick up in the second half of the year. Emarketer’s estimates are based on what it has seen in China’s ad market, where the virus was first discovered in late December 2019.

The updated modeling assumes the virus will largely be contained in the coming months and that there will be a “rebound” in the second-half of 2020, when the majority of ad spend occurs around the holiday season. The forecast assumes the 2020 Summer Olympics will take place as planned in Tokyo. The firm says it will re-evaluate if that changes or if there is “a sustained economic contraction.”

Earlier this month, WARC projected that global media spend will increase by 7.1% this year, with the expectation that brands will shift media budgets to the second half of the year. That model assumes added advertiser competition in the latter half of the year will drive up media prices as companies aim to make up for lost business.

The ability for SMBs to recover will factor in whether these forecasts can hold. “Alphabet, Facebook and Amazon stand to gain from a renewed focus on delivering short-term marketing goals in a crisis period, but a sizeable amount of their income relies upon small and medium sized enterprises, and these are the advertisers that are perhaps most vulnerable to a sharp economic downturn,” says WARC.

Amazon’s advertising business, which topped $14 billion last year, is likely to take a hit over the next four weeks as it holds off accepting non-essential items to its warehouses. Google could miss out on $4 billion in ad revenue from travel advertisers in the first half of the year due to the coronavirus outbreak, say analysts. Lower spending in travel, retail, consumer packaged goods and entertainment, will also impact Facebook’s first-half ad revenues. analysts peg those sectors at 30% to 45% of Facebook’s total revenue.

More on the news

  • Emarketer lowered its ad spending forecast for China, the second-largest ad market after the U.S., by more than 6%.
  • The firm expects overall media ad spend in China will grow by 8.4% this year, down from the prior estimate of 10.5%.
  • Digital ad spend in China is forecasted to reach $81.06 billion in 2020, down from the previous estimate of $86.30 billion.

Related

  • Sellers start feeling the strains on Amazon’s fulfillment systems amid coronavirus buying frenzy
  • More PPC advertisers pause campaigns amid coronavirus upheaval
  • Coronavirus disrupts search, digital ad budgets

This story first appeared on Search Engine Land. For more on search marketing and SEO, click here.


Opinions expressed in this article are those of the guest author and not necessarily Marketing Land. Staff authors are listed here.



About The Author

Ginny Marvin
Ginny Marvin is Third Door Media’s Editor-in-Chief, running the day to day editorial operations across all publications and overseeing paid media coverage. Ginny Marvin writes about paid digital advertising and analytics news and trends for Search Engine Land, Marketing Land and MarTech Today. With more than 15 years of marketing experience, Ginny has held both in-house and agency management positions. She can be found on Twitter as @ginnymarvin.

Related Topics

Channel: Display AdvertisingDisplay AdvertisingStatisticsStatistics: Spend Projections

We're listening.

Have something to say about this article? Share it with us on Facebook, Twitter or our LinkedIn Group.

Get the daily newsletter digital marketers rely on.

Processing...Please wait.

See terms.

ATTEND OUR EVENTS

Next Event: Sept. 14-15, 2021

Available On-Demand: March 2021

Available On-Demand: October 2020

×

Attend MarTech - Click Here


Learn More About Our MarTech Events

June 15-16, 2021: SMX Advanced

June 21-22, 2021: SMX Advanced Europe

August 17, 2021: SMX Convert

November 9-10, 2021: SMX Next

December 14, 2021: SMX Code

Available On-Demand: SMX

Available On-Demand: SMX Report

Available On-Demand: SMX Create

×


Learn More About Our SMX Events

White Papers

  • SEO Wars: How to Resist the Dark Side and Earn Links Organically
  • Data & Organizational Roadblocks? Your Path to Frictionless Revenue Optimization
  • Converting with Conversational AI
  • 4 Ways Chatbot Marketing Can Drive Sales
  • Client Reporting Best Practices Guide
See More Whitepapers

Webinars

  • Drive Customer Engagement with the Power of Personalization
  • 7 Use Cases That Prove Why You Should Implement DAM
  • Accelerate Your SEO & Content Marketing Program with 4 Key Milestones
See More Webinars

Research Reports

  • Local Marketing Solutions for Multi-Location Businesses
  • Enterprise Digital Asset Management Platforms
  • Identity Resolution Platforms
  • Customer Data Platforms
  • B2B Marketing Automation Platforms
  • Call Analytics Platforms
See More Research

Attend SMX For Only $199

h
Receive daily marketing news & analysis.

Channels

  • MarTech
  • CMO
  • Social
  • SEM
  • SEO
  • Mobile
  • Analytics
  • Retail
  • Display

Our Events

  • MarTech
  • SMX

Resources

  • White Papers
  • Research
  • Webinars

About

  • About Us
  • Contact
  • Privacy
  • Marketing Opportunities
  • Staff

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • RSS
  • Youtube

© 2021 Third Door Media, Inc. All rights reserved.