Because of the disruption to business caused by the COVID-19 pandemic, advertisers plan to put more money into digital ads and decrease spending on TV during the upcoming holiday season, according to Advertiser Perceptions.
Advertiser Perceptions has been doing bi-weekly surveys of advertisers and media buyers since the start of the coronavirus crisis and will sum up its findings at a webinar Thursday.
Reducing spending during the traditionally strong back-to-school, Thanksgiving and Christmas holidays will be tough on the TV industry.
During the crisis, advertisers have put a premium on flexibility in media, from canceling or pausing to reallocating buys and replacing creative. As a result, Advertiser Perceptions says the outlook is brightest for paid search, e-commerce, digital video and paid social media – channels that support real-time changes.
“The pressure on flexibility will only grow, so how quickly media can shift dollars to other parts of their portfolios is survival stakes,” said Lauren Fisher, VP, business intelligence at Advertiser Perceptions. “Salespeople have to become fully conversant across all areas of business, so they can educate buyers fully on adjusting the mix and facilitate the reallocation of impressions.”
Streaming will keep growing, according to the survey, which found that 43% of advertisers have beefed up their spending on connected TV and over-the-top ads during the crisis. Among those responding to the survey 80% have increased their personal use of streaming services.
Another story emerging from the crisis is the disruption of commercial production, which has made big-budget, high production value spots almost non-existent. At the same time, advertisers have had to be nimble in tuning their creative messages to fit what consumers want and what services marketers are able to provide, such as curb side pick up.
Only 22% of those surveyed expect to return to producing opulent commercials, while another 31% aren’t sure.
Starting in August, Advertiser Perceptions will be doing regular monthly surveys of advertisers and media buyers that will focus on spending plays by medium.
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