Survey of advertising clients: Advertising market suffers under Covid-19
For almost three quarters of all advertising companies in Switzerland, Covid-19 has had a negative impact on sales. As a result, almost half of those surveyed are putting the brakes on costs in the second half of the year. Print, OOH and sponsorship are particularly affected by this. Online channels will be more in demand and TV will be able to maintain its market share. These are the findings of a recent survey by the Swiss Advertising Client Association (SWA).
From the end of May to the beginning of June, the SWA asked its members and other advertising companies how they assessed the impact of Covid-19 after the lockdown. A total of 108 advertising clients from all sectors responded to the independent association's online survey.
Negative impact on sales
For 72% of advertisers, Covid-19 has had a strongly negative or negative impact on annual sales. This probably comes as no surprise, as advertising companies, like the economy as a whole, were affected by the lockdown. As a result, many companies must now also expect a decline in revenue for 2020. Only a few advertisers are reporting neutral or even positive effects from Covid-19.
90% of advertising clients were forced to postpone or cancel many or some advertising campaigns due to Covid-19. As reported to the SWA, many media marketers have reacted in an accommodating and flexible manner.
It is pleasing to note that almost half of the advertisers surveyed have responded to this crisis with special campaigns. These companies were able to present themselves in a compassionate way with thank-you, perseverance or, most recently, reopening campaigns.
Advertising industry hits the cost brakes
Around half of those surveyed plan to invest the same amount or less in marketing and advertising in the second half of the year. This means that numerous companies are putting the brakes on costs, which will be felt by agencies, media and the entire industry.
Performance targets more in demand than image targets
For example, 83% of respondents want to focus as much or more on performance targets and only 62% want to focus as much or more on image targets. 31 percent of respondents also say that they want to focus less on image targets, which only 11 percent of respondents intend to do with performance targets.
Major differences in the communication channels
In the second half of the year, respondents are particularly keen on online channels, which are in greater demand, and TV, which is able to maintain its market share. Companies want to invest significantly less than planned in print, OOH and sponsorship. At the same time, 70% of companies do not want to invest in cinema, 56% do not want to invest in radio and 35% do not want to invest in influencer marketing in the second half of the year. Although 54% of respondents are sticking to their spending on direct marketing, this channel is also under pressure.
