Return on marketing spends expected to fall by 30% without “rapid reoptimisation”, predicts Ebiquity, a marketing and media consultancy.
UK businesses that change their media mix, the timing of campaigns and adjust budgets could save as much as £550 million of lost profits in 2020. Ebiquity studied the effects of changing costs, reach and economic conditions and its potential impact on advertising profitability caused by the pandemic.
Without “rapid reoptimisation” like reallocating spend, return on marketing spends could drop by 30%. Businesses are advised to decrease overall ad spend and reduce the share of cinema, out of home and print.
The study suggests businesses maintain or reduce TV spend while commanding the same amount of advertising space. Nic Pietersma of Ebiquity says, “Allocated marketing spend has a direct and positive impact on the bottom line”.
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