TV NewsCheck reported on a recent Magid study regarding advertising spending on TV during the COVID-19 crisis. According to the report “
“[A]dvertisers now plan to pull back on their broadcasting buys by 36% this year as they aggressively hoard cash. To curb the crisis, Magid says account executives need to fully understand their advertisers’ business so that they can advise them how to market — and how to use TV — through the pandemic.”
Magid researcher Bill Day explained further, “The advertisers are relatively confident that [the country] is going to come out of it in short order…. What they are not sure of is can they survive the disruption. So, they are aggressively hoarding cash.”
The article further noted, “Magid’s April survey of advertisers found that 61% have shut down and only 44% of them are completely confident of reopening, Day says. What’s worse, the survey found that 20% of the advertisers in its panel have “simply gone dark.”
The study observed that in the great recession of 2008 and 2009, many firms cut staff. The present situation is different. In the COVID situation, companies are cutting marketing and advertising instead of staff.
This article is worth reading. To see a summary of the Magid Research report in TV NewsCheck click HERE.
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