edeon.net Communication  Barcelona

Spectacular drop in media advertising as audiences keep growing


The media estimate that they will suffer from a 40 to 50% drop in advertising investment in Catalonia and Spain while the coronavirus-led confinement and crisis last.

The coronavirus pandemic crisis is putting the media in a very difficult situation. Advertising budgets are collapsing globally, with audiences and internet connections reaching record levels.

Audiences are larger than ever, but this does not translate into monetization for advertising companies. The latest eMarketer forecasts, for example, already target advertising investments, will continue to decline. The consulting firm has just updated its global advertising spending forecast for this year and believes that by the end of the year companies will have invested $ 691.7 billion in advertising. This is higher than what was invested in 2019, but lower than what the consulting firm was predicting for 2020. In their previous forecast, they indicated that 2020 would close with $ 712.020 billion in advertising revenue.

The drop is mainly driven by the Chinese advertising market, though things are global. Even the estimation is what eMarketer is starting with the idea that by the third quarter of the year normalcy will be restored and stores will be open (and the Christmas campaign already gaining momentum), but its forecast also does not take into account the change in date of the Olympic Games.

Add to that another, quite complicated issue. Programmatic advertising is failing on the digital media: Although they are gaining a lot of traffic and despite reaching a very large number of pageviews, they are not able to monetize it. Brands and companies have put the coronavirus in their keyword blacklists, not to end their ads with content that is negative or dramatic.

From Edeon , we are recommending clients with a budget that not only continue to invest in digital advertising for their current campaigns, but also adapt them to the new times we live in, and increase their investment if needed. this rebound in connectivity. "Now is the time to invest in social media advertising," says Doctor of Marketing and Director of edeon.net , Lluís Feliu, explaining that "with social media advertising, advertisers will probably not achieve sales. in the short term, they can still pass confinement on the consumer side, giving them a good brand image and more recognition. "

The media is calling for action

The American media love the local press as lost 30,000 million in advertising this year, Catalan and Spanish media also see the situation in a very critical. Media associations have already asked the government for measures to address this situation. Jointly, the Spanish Association of Periodicals Publishers (AEEPP), the Association of Information Magazines (ARI), the Association of Professional Press and Multimedia Content (Coneqtia) and the Association of Cultural Magazines of Spain (ARCE) earlier this week forwarded to the Spanish government a "proposal for a Shock Aid Plan to tackle and stop the economic and social upsets that the Coronavirus crisis is causing in the sector."

Take the opportunity to gain presence

The team of professionals at edeon.net recommends that all companies allow, do not rethink their advertising strategies but do not cancel them. Now that there is more to social media, entertainment platforms and the media than ever, advertising, pursuing new goals, and investing need to be adjusted.

Source: PuroMarketing