11.3% of reduction in ad spend is anticipated in 2020, as per IPA’s Bellwether Report for Q2 2020.
The report states the net balance of companies decreasing marketing budgets fell to -50.7% in April-June, from -6.1% in Q1 2020. A drop in spend in Q2 as compared to Q1 is indicated by 64% of the companies, with only 13% reporting growth.
A net balance of -51.1% of marketers are seeing a fall in available spend with out-of-home (-61.2%), audio (-50.0%) and published brand (-49.2%) being some of the worst performers. Caused by social-distancing, net balance of -76.6% of companies have reported a decline in events budget.
Over 80% reported a decline and only 3.6% reported an increase. Direct marketing and public relations were the “least worst” with both at a net balance of -41.6%.
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