- The coronavirus pandemic is upending the advertising business, along with other swaths of the economy.
- Here is a breakdown of its impact on advertising, from layoffs and furloughs to events cancellations to sales slowdowns.
- Visit Business Insider’s homepage for more stories.
The advertising business has been upended by the coronavirus, along with other sectors of the global economy. Advertisers have hit the breaks in spending as sales plummet, audiences for live sports have fallen, and layoffs rip through media companies and advertising and PR agencies.
JPMorgan Chase analysts have said the largest and most heavily leveraged companies, like WPP and Publicis, and those most exposed in Asia, like Dentsu, are most at risk from advertisers cutting spending, while IPG could fare better because of its data and healthcare business.
Read more:
- Ad holding company giant Havas laid off about 200 people as clients slash spending
- 76% of companies plan to slash their advertising budgets this year – here’s why their ad agencies could bear the brunt of the cuts
- Edelman insiders describe layoffs at the PR giant after the CEO promised there wouldn’t be job cuts
- Layoffs and furloughs hit holding companies WPP, Omnicom, and MDC Partners as advertisers slash spending
- Analysts lay out the effects of the pandemic on the ad holding companies, with advertisers slashing TV and digital spending
The cancellation of live sports and events has been a headache for TV networks and media companies like The Atlantic and The Athletic, leading some to lay off staff while others have shifted to virtual events.
Read more:
- Inside sports media startup The Athletic, where writers describe mounting pressure as subscription growth slows, ad revenue dries up, and live sports come to a halt
- Leaked document: Top ad agency predicts that cancelled NBA and NCAA events will cost TV networks up to a 25% drop in viewership
- TV sports viewing will 'go from bad to abysmal' in the coming months, but analysts say NBCUniversal and Fox are best poised to weather the coronavirus
- This year was supposed to be a banner year for sports TV. Now advertisers are scrambling to figure out where to put their money as live events get scrapped or postponed.
Marketers have been scrambling to make sure all their messaging is right for the moment, even pulling entire campaigns in some cases, while some are taking advantage of low ad rates.
Read further:
- AT&T's chief brand officer shares why it brought back an old brand mascot, where it's advertising now that live sports are canceled, and why it's not blacklisting coronavirus news
- The coronavirus is upending advertising. Top marketers at Toyota, Burger King, and Hippo reveal how they're changing their ad strategies to keep up.
- Online education startup MasterClass just raised $100 million. Its CMO reveals how the company is taking advantage of low TV ad rates to advertise to people at home during the pandemic.
- Cancelled ad campaigns and 60% cuts in spending: Media buyers are scrambling to manage disruptions to their businesses amid the coronavirus crisis
- Top consultants issue coronavirus guidelines for ad agencies as they pivot to remote pitches
The pandemic has stirred up debate about advertisers' practice of avoiding hard news, which has made it hard for news publishers from BuzzFeed to TheSkimm to monetize big readership gains.
Go deeper:
- BuzzFeed CEO Jonah Peretti faces his toughest leadership test ever as the media company could lose millions this year
- Media companies have never had more readership, but a group of adtech companies are making it tough to monetize
- Ad agencies are calling on advertisers to get comfortable with coronavirus news
- Digital media companies are facing the worst downturn in a generation. Investors in Axios and The Athletic say what CEOs should do to survive.
Looking ahead, the coronavirus is expected to have a lasting impact on the advertising industry.
Read about the virus' long-term impact here:
- The CEOs of WPP, Publicis, Edelman and more explain how the pandemic will change advertising, from shrinking office space to improving creative output
- 'It will fundamentally reshape the advertising industry': Ad insiders from Burger King, Freshly, McCann, and Vita Coco say the coronavirus will radically change the business
- CEOs of PR firms like Edelman and BCW reveal why they're focused on winning business from advertising and consulting companies coming out of the pandemic
- 16 media buyers identified the media companies that are poised to gain and lose the most as the pandemic upends advertising spending
- Facebook and Google might get walloped by the thousands of small businesses impacted by the coronavirus, but their massive ad businesses will come out stronger in the end
- In leaked memos, Sir Martin Sorrell frames the pandemic as an opportunity to acquire 'distressed' ad agencies and reveals that his firm S4 Capital has applied for government subsidies