Analysts expect Google and Facebook to experience declining ad revenue in travel and other industries, mostly affected by global efforts to reduce the spread of coronavirus. On the ground, marketers and media shoppers are re-evaluating their near-term advertising strategies.
Loop Capital Markets analyst Rob Sanderson expects Google to see a 15 percent drop in travel ad revenue in the first quarter and a 20 percent drop in the second quarter due to the Corona virus outbreak.
Last week, Newham analysts Laura Martin and Dan Medina said there was evidence of lower spending on travel, retailers, consumer-goods, and leisure activities, which, by estimating, they were among Facebook’s total revenue. 30 to 45 represent.
Since Wednesday we have heard media buyers share many scenarios, some have not seen any change yet, others have made dramatic adjustments in the near term budget. Some are even raising digital budgets.
Supply chain and demand concerns
The impact of the supply chain on inventory is beginning to be felt in advertising costs. Scott Wright, a senior PPC consultant at London-based e-commerce consultancy and agency Veronte, said a client acquiring a product in China began to worry about inventory in February but is expected to buy existing stock Will run the ad for two more months. “Since the situation in their supply chain has not improved,” Wright said, “some important products are expected to be in stock this month, so [Google Search and Shopping budgets] The UK and Europe are expected to decline 40% this month.
Michelle Morgan, director of client services for digital agency Clix Marketing, based in Louisville, said that a luxury international travel business has reduced its budget by more than 50 percent over the past month across all digital channels. Morgan says the agency still has the flexibility to allocate for the rest of the budget channels and campaigns that are most effective, with little to do right now.
Some businesses have completely stopped their digital advertising budget. “We have two clients spending time intermittently because of the Corona virus,” said Tom Schorwell, managing director of the UK-based digital agency Distinctly. In the hospitality and events industries, clients expect to keep advertising until the corona virus gathering is affected.
There are all kinds of businesses in the uncertainty of it all.
Another Vermont client, a consignment retailer, did not see a demand drop, Riot said, but “trends coming from Italy have kept him cautious,” Wright said. The agency manages search, shopping, Amazon and social for clients. Last week, Amazon’s earnings were down, but Wright said it’s not yet clear if this is the trend. They expect most of the client’s expected campaigns to be rolled out this week, though the amount has not yet been confirmed. Budget management is done on an ad-hoc basis every day, depending on how things look.
Josh Yates, a paid search consultant in Alabama, said his client has not changed any way yet, but many people are nervous. Even in areas that appear to be unaffected. One, not an e-commerce brand in the United States and an anticipated inventory challenge, called for, “Be prepared to cut costs.”
Not everyone sees the budget as a response to the budget.
As the trade show circuit is diminishing, some exhibitors are looking for other ways to fill their sales pipelines. “[I] Tim Jensen, manager of the PPC campaign for Climax Marketing, said that there has been talk to just one client who sees a lot of trade shows being canceled, and he wants to get more lost in digital As events make their choice.
Amalia Fowler, director of marketing at Snapchat Marketing, based in Vancouver, said one of her clients, an excellent food tour business, is growing rather than pulling a digital budget. With aggressive aggressive growth targets for the year, including a new tour to promote, the company faces a downturn and increases its search budget. “This is giving them a huge advantage over large travel companies, so it can stop working,” Fowler said.
WARC also plans to increase global media spending this year by 7.1% this year. It is expected that marketers will shift budgets only in the second half of the year, which will increase competition and pricing for the media. This means that advertisers can continue to feel squeezed out shortly after the corona virus is gone.