There is a possibility that the number of people infected with the new coronavirus, which once seemed to be on its way out, may increase again. Due to the worsening economic situation, also known as the coronavirus crisis, companies in various industries have been hit hard in recent months. With many companies struggling with cash flow, how has the number of ads placed in the advertising industry changed?
Defining the first wave of the 2020 coronavirus shock as around April to May and the second wave as occurring after July, we will compare and examine the situations of the first and second waves and analyze the impact on future promotional activities. did.
Reference source:
Survey of the impact of the second wave of the new coronavirus on marketing activities, conducted by 320 corporate advertising managers
Changes in the number of advertisements placed after the coronavirus shock
Reference source:
Survey of the impact of the second wave of the new coronavirus on marketing activities, conducted by 320 corporate advertising managers
During the first wave in April and May, when the government declared a state of emergency and people were asked to refrain from going out, many companies stopped advertising.
Approximately 52% of companies have stopped “all” or “most” advertising. Including companies that have “stopped some advertising”, more than 70% of companies will have had some kind of impact on their advertising.
On the other hand, in the second wave, approximately 40% of companies responded that they had stopped all or most advertising. Including companies that have “stopped some operations,” the result is about 64%. This indicates that an increasing number of companies continued to publish advertisements as originally planned, rather than restricting advertising as was the case in the first wave. There are a variety of companies that have had to reduce advertising due to the effects of the new coronavirus, some that have considered it and decided not to reduce it, and some that have decided to increase it. The situation of the second wave is quantified in the figure below.
Verifying the difference between the 1st and 2nd waves/advertisement status
Reference source:
Survey of the impact of the second wave of the new coronavirus on marketing activities, conducted by 320 corporate advertising managers
In the second wave of advertising, the total number of companies that have “reduced” or “reduced by the same amount” compared to the first wave was approximately 48%. Other than that, it was found that advertising was not reduced or increased. Why did about half of the companies choose to continue advertising as planned and not stop advertising? We will analyze the reasons for this based on a survey of people in charge of advertising.
2nd wave “Not reducing advertising even in the face of coronavirus shock” revealed by the person in charge of the reality of companies
Reference source:
Survey of the impact of the second wave of the new coronavirus on marketing activities, conducted by 320 corporate advertising managers
According to the company’s advertising staff, the reason they did not suspend advertising during the second wave was because they judged that the stagnation in consumer purchasing behavior was “limited compared to the first wave.”
Many companies also cited a decline in their image due to restrictions on advertising, and an “impact on sales” due to the suspension of advertising during the first wave.
A notable number of companies answered that they had been affected in some way by the reduction in advertising during the first wave, or that they were concerned about a decline in their company’s favorability or recognition.
summary
Many companies initially reduced advertising to consumers due to the spread of the new coronavirus, but fewer companies responded that they had reduced advertising in the second wave than in the first wave. It can be said that the impact of the new coronavirus on the advertising industry is decreasing, albeit slowly, as more companies are choosing to publish ads as scheduled. Companies are concerned that by ceasing advertising to consumers, the goodwill and recognition they have built up over the years will decline, leading to a decline in sales.
In fact, it may be more a matter of not being able to reduce advertising, rather than not being able to reduce it.
Reference source:
Survey of the impact of the second wave of the new coronavirus on marketing activities, conducted by 320 corporate advertising managers