What's Happened to Marketers, Media and Brands During the Coronavirus
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What’s happened to marketers, media and brands during the coronavirus pandemic. What comes next MARKETING IN THE TIME OF COVID-19 Sponsored by P001_AA_20201019SUPP.indd 1 10/8/20 1:59 PM Understand People Inspire Growth Are you ready for a cookieless world? The demise of third-party cookies will upend digital ad measurement. Will you have the insights you need? Kantar is ready to support you with the industry’s most advanced advertising effectiveness platform, including partnerships with Google, Roku, Pandora, Pinterest, Dish and more. Learn more at kantar.com/cookielessmeasurement Untitled-35 1 10/8/20 12:46 PM Marketing in the time Overview 4 of COVID-19 was produced by Ad Age Datacenter and published Oct. 19, 2020. What comes next? Charts: Writer: Julie Liesse Digital first • Down for the count Editors: Kevin Brown, Bradley Johnson The pressure for accountability • Monthly media spending totals in Senior Art Director: Jennifer Chiu will accelerate advertisers’ shift to the first half of 2020 [email protected] digital media • What’s up (and down) with the top AdAge.com/datacenter 10 categories • What’s up (and down) with the top Julie Liesse is a longtime Ad Age 10 advertisers contributor with special expertise covering the marketing, media, food and automotive industries. Paid social media 9 Additional copies: Order print copies at [email protected] or Social studies 877-320-1721. For readers outside the Social media advertising was on U.S., 313-446-0450. a roller coaster in 2020 with the Digital edition pandemic and advertisers’ brief available free online at Facebook boycott AdAge.com/resources Ad Age Studio 30 Ad Age Studio 30 helps your brand Consumers 10 connect with an influential audience actively seeking new partners, solutions and products. Through Consumer responses to Charts: original custom articles, thought- COVID-19 • What consumers expect from brands leadership content, events, research, How consumers are feeling, reacting • How COVID has affected media habits webcasts, white papers, infographics and behaving during the pandemic and more, our end-to-end solutions help your content reach and resonate. [email protected] 13 Sports Contact: James Palma GM Revenue, Client Partnerships New rules of the game Charts: [email protected] Sports may have been affected • Field of dreams by the pandemic more than • Waiting game About Kantar any other industry Kantar is the world’s leading evidence- based insights and consulting company. We have a complete, unique and rounded understanding of how 16 Retail people think, feel and act; globally and locally in over 90 markets. By What’s in store Chart: combining the deep expertise of Kantar’s Retail division calls it • Shifting shopping habits our people, our data resources and “the most rapid and forced benchmarks, our innovative analytics transformation in history” and technology, we help our clients understand people and inspire growth. kantar.com Creative effectiveness 20 Contact: Libby MacDonald Senior VP, Growth and Strategy Be creative 4 tenets for effective Media Intelligence Team (and don’t hide) ad messages [email protected] The situation for advertising, for Be optimistic. Be familiar. Put action 404-683-7869 brands and for creative is fluid over rhetoric. Dare to be different © Copyright 2020 Crain Communications Inc. The data and information presented is the property of Crain and others and is protected by copyright and other intellectual property laws. For personal, non-commercial use only, which must be in accordance with Ad Age’s Terms and Conditions at AdAge.com/terms. Archiving, reproduction, re-distribution or other uses are prohibited. Important to Important People 3 P003_AA_20201019SUPP.indd 3 10/8/20 1:54 PM Marketing in the time of COVID-19 WHAT COMES NEXT? DIGITAL FIRST Last fall, when forecasters began looking at Ad and subtract expectations for ad spending in 2020, their The economic crisis played out in ad spending. crystal balls signaled a conservative, cautious There were significant ad spending declines for year for most marketers around the world. the first half of 2020 in every medium mea- But buoyed by the presidential election and sured by Kantar. Print media were the hardest the Summer Olympics, and factoring in media hit, with year-to-year ad spending declines of price increases and continued growth in digital 24.6% for magazines and 36.3% for newspa- channels, ad spending in the U.S. was projected pers. Television spending fell 16.5%. to grow by 4% to 5% this year. Even digital media fell 18% from the pre- And then the COVID-19 pandemic hit the vious year. Conventional wisdom held that U.S. And everything stopped. people increased screen time while sheltering Marketing began to reflect the impact of at home, but advertisers weren’t there. the pandemic in March, when U.S. ad spend- “Interestingly, there’s no media immune to ing across all media fell to $10.5 billion, 17.5% the current environment,” says Gregory Aston, below the spending total from March 2019, head of digital media research science, Kantar according to Kantar. Media Division. Then in April, spending plummeted to $8.0 That number should come as no surprise, billion, down 23% from the weak March num- Aston says. ber and nearly 35% less than April 2019’s total. “When we look at major contributors to The trend continued in May, with spending digital spending, for instance, we look at the down 32% year to year, and in June, down 30%. automotive, retail and travel categories—and Kantar pegs first-half U.S. spending at $59.3 those three categories alone contributed 42% billion, down 19.3% from 2019. Second quarter of the decline in digital spending,” he says. spending alone dropped 32.4% year to year, to Aston points out auto, retail and travel $25.5 billion. industries traditionally represent about a Looking at the country’s broader economic quarter of total U.S. ad spending. “The impact picture, the massive drop in ad spending was of those three categories going dark is so broad no surprise. and deep that it has an impact on any media The University of Michigan consumer confi- we’re looking at,” he says. dence index posted a record one-month decline Kantar’s numbers show overall ad spending in April; consumers continue to say they by retailers tumbled 22.6% in the first half of believe bad financial times and high unemploy- the year to $5.9 billion—still the largest adver- ment will continue into 2021. tiser category as defined by Ad Age. U.S. gross domestic product plunged at a There was a split in the category, howev- seasonally and inflation-adjusted annualized er. While department stores and specialty rate of 31.7% in the second quarter, the sharp- retailers were for the most part not open and est drop on record. Unemployment rocketed often not advertising, spending by food stores to 14.7% in April, the highest level since 1939. and supermarkets was up 43%, Aston says, as It fell below 8% in September, but still with households hunkered down and ate in. millions unemployed or underemployed and a “From a consumer behavior standpoint, wave of new unemployment claims every week. going to the grocery store to resupply the 4 Ad Age October 19, 2020 P004_P008_AA_20201019SUPP.indd 4 10/8/20 2:01 PM Down for the count U.S. measured-media spending in first half 2020 and first quarter 2020 vs. a year earlier. Dollars in billions. $80 TV Radio $73.5 Magazine Newspaper $34.6 Outdoor 70 Desktop search and desktop internet display $59.3 60 $28.9 50 40 $37.8 $3.6 $17.3 $6.1 30 $2.7 $3.7 $4.6 $25.5 $2.4 $12.2 $23.0 $2.4 20 $1.9 $1.9 $18.7 $3.3 $1.9 $1.3 $1.1 $12.0 $2.2 10 $1.0 $0.8 $8.3 0 First half First half Second quarter Second quarter 2019 2020 2019 2020 Source: Kantar. More info: Kantar.com. TV: Broadcast network TV, cable TV networks, spot, syndicated; includes Spanish-language networks. Magazine: Consumer, Sunday, business-to-business and local magazines; includes Spanish-language magazines. Newspaper: National and local newspapers; includes Spanish-language newspapers. Radio: Network, national spot and local. Important to Important People 5 P004_P008_AA_20201019SUPP.indd 5 10/8/20 2:02 PM Marketing in the time of COVID-19 pantry became the outing of the week for many declined more than any other large ad cate- households in the spring,” he says. gory. Spending by airlines, hotels, car rental The automotive industry also has seen companies and other travel marketers fell mixed results. In particular, new-car sales 53.3% to $1.8 billion in the first half of the year. suffered as manufacturers coped with sup- Travel ad spending in April alone plunged by a ply-chain issues and product shortages in staggering 84% compared to 2019. addition to mandated factory and showroom Other subcategories also saw big spending closures. Edmunds estimated a 52.5% decrease cuts that reflected lifestyle changes as con- in new-car sales in April, compared to the sumers sheltered at and worked from home. previous year, calling it the worst auto sales Spending in the men’s shaving products cat- month in more than 30 years. egory fell 75%, Aston says; men working from Not surprisingly, ad spending in the auto- home were not necessarily in the market to motive category fell 36.4% to $3.8 billion in the replenish shaving supplies. first half of the year. With most movie theaters closed across the But used-car sales have ticked upwards, country, ad spending for the movie catego- and many dealers whose showrooms were ry fell 57% in the first half of 2020 as most closed in March and April reported record sales planned new releases were sidelined.