60% of companies reported a decrease in Internet advertising spending compared to the previous year. Transportation and leisure are significantly affected by refraining from going out (Cyber Communications survey)

Cyber Communications Co., Ltd. announced on August 6, 2020 the results of a survey regarding trends in the “Internet advertising market” during the new coronavirus pandemic. The survey period is from July 6th to July 17th, 2020. We received responses from 540 people involved in the Internet advertising market.

This revealed the impact of the spread of the new coronavirus on companies’

internet advertising

budgets.

Reference source: Announcement of internet advertising market trends in the first half of 2020 and predictions of advertising trends by industry in the second half of 2020 amid the new coronavirus pandemic

Internet advertising expenses in the first half of 2020 decreased compared to the previous year for 60% of companies

First, we will compare the results of internet advertising expenses for the first half of 2020 (January to June) compared to the first half of 2019. More than 60% of companies said their Internet advertising expenditures had decreased compared to the previous year, with 20.4% saying they had “decreased significantly” and 41.1% saying they had “decreased.” In addition, 24.3% of respondents answered that there was no change, and a total of 14.3% said that there was an increase or a significant increase.

Internet advertising expenses that decreased the most were “reservation type”

Next, we will look at changes in Internet advertising expenses by transaction method. The category with the highest total of “significantly decreased” and “decreased” was 60.5% for “reservation type”. This was followed by “ad networks” at 41.7% and “performance advertising (video advertising)” at 39.6%, but even compared to these, it can be seen that “reservation type” has a very large influence. This is probably due to the large impact of people refraining from going out in areas such as “leisure and transportation,” which will be discussed later.

On the other hand, the total of “increased” and “significantly increased” was highest for “programmatic advertising (video advertising)” at 23.9%, followed by “social advertising” at 20.2%.

More than 60% of companies did not change their results for “Search advertising” and “Affiliate”.

Looking at the programmatic advertising (display) market, campaign costs fell for 12 weeks after the week of March 9th, but began to recover in June. However, CPM has not returned to pre-coronavirus levels, and it is predicted that large advertisers with high ad unit prices have not yet returned.

The reason that the increase and decrease in advertising expenses for “Programmatic advertising expenses (including videos)” are polarized in the above data may be due to this seasonal trend.

Industries affected by refraining from going out dominate the decline in advertising expenses.

Finally, let’s take a look at industries where Internet advertising spending has decreased. The highest percentage was “Transportation/Leisure” at 43.5%. This was followed by “cosmetics/toiletries” at 23.5%, “automobiles/related items” at 20.2%, and “fashion/accessories” at 19.8%. Industries that are affected by consumer behavior due to people refraining from going out to prevent the spread of the new coronavirus are at the top of the list.

As a result of the survey, 60% of companies reported a decrease in their internet advertising expenses compared to the previous year, and this trend was particularly evident in industries that were affected by the refraining from going out, such as transportation and leisure. We hope that industries such as transportation and leisure will recover quickly as the restrictions on going out are lifted.

60% of companies reported a decrease in Internet advertising spending compared to the previous year. Transportation and leisure are significantly affected by refraining from going out (Cyber ​​Communications survey)

Internet advertising expenses in the first half of 2020 decreased compared to the previous year for 60% of companies

Internet advertising expenses that decreased the most were “reservation type”

Industries affected by refraining from going out dominate the decline in advertising expenses.

60% of companies reported a decrease in Internet advertising spending compared to the previous year. Transportation and leisure are significantly affected by refraining from going out (Cyber Communications survey)