BIA's forecast tracks spending across all media platforms. BIA's pre-COVID and post-COVID estimates indicate that advertisers are pulling back on spending (see chart above). Media is being impacted by different verticals, including the following:
- Local radio andtelevision, both effected by decreased ad spend by leisure and entertainment, restaurants, and retail companies, as well as sports cancellations.
- Direct mail, impacted by a considerable decrease in ad spend by retail and financial companies.
- Out-of-home outlets impacted by decreases in spend from leisure and entertainment companies.
- Online (desktop) ad spending is showing a significant decline because it's largely driven by SMBs.
- Local cable systems are seeing a decline as the lack of live sports has affected their viewing and selling advertising time.
One encouraging element is that political advertising will keep the decrease in both local cable and local OTA television smaller than other media. Other media, without that buffer, will see larger percentage decreases from what BIA originally projected for 2020. The health sector business vertical is also expected to see a slight increase in ad spending, as hospitals and health professionals will become highly sought after.
"As this situation unfolds, we are continually running our forecast models to make sure our estimates reflect economic conditions," said Thomas Buono, CEO and founder of BIA Advisory Services, in a statement. "This unprecedented moment is greatly affecting our clients' revenue opportunities, and we believe businesses can use solid data and insights to take steps to minimize their losses and take steps to plan for the recovery."
Buono has been advising clients to take several steps to keep their companies going and prepare for the economic rebound by preserving liquidity, emphasizing and managing relationships, and, thinking forward.