COVID-19 pandemic likely to impact budgets, talent, productivity and agency-brand relationships

New Ideas in MarketingEssential news for marketers, summarised by YouGov
June 01, 2020, 12:02 PM UTC

Rigor and quality will be an integral part of the advertiser-agency relationships.

With COVID-19 affecting budgets, talent, productivity, and advertiser-agency relationships, businesses must adapt and embrace structural and behavioural changes in these areas. Advertisers could decrease ordinary spending, become less flexible on payment terms risking cash flows of smaller agencies.

Additionally, advertisers are likely to bid for larger projects and look for efficient agencies to maximise their marketing budgets. Agencies are also likely to favour freelance resources to manage budget constraints, while the demand for new opportunities rises, it will create gaps in some areas.

However, new learning methods will be required, and more tasks will be automated, while decision-making is simplified as organisations become agile and opportunistic. The impact will cascade into shrinking relationships between advertisers, agencies, as advertisers revaluate needs, and conduct account reviews.

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