SMI Ad Spend Report: U.S. Best Performing Global Anglo Market in First Half

Ad Spend Total Market All five Anglo markets reported percent doubledigit declines in ad spend when the first six months of 2020 is compared to the previous year In the US the yearoveryear ad spend declined by 163 the lowest of the five markets The ad marketplace in New Zealand dropped by 183 and the UK was off by 193 Ad spend suffered the biggest losses in Canada which was down by 284 more than any of the five markets while Australia declined by 240Ad Spend Television One reason for the declining ad marketplace was television Once again in all five markets SMI found the yearoveryear decline was in percent doubledigits The advertising losses in television were felt greater in Canada which was down by 268 followed by Australia which dropped by 226 While still significant the losses in television ad spend were lower in New Zealand 159 the UK 177 and the US 187While the US had such popular sporting events as basketball and baseball delayed There were also postponements or cancellations of popular sports in the other Anglo markets The National Hockey League season had been put on hold from midMarch until August 1 impacting the Canadian ad marketplace In the UK soccer39s English Premier League was suspended for three months before resuming in June Such popular team sports in the UK Australia and New Zealand as cricket and rugby also had their matches disrupted by the pandemic at a notable financial loss These postponements or cancellations of many other popular sporting events impacted the television ad spend across all five markets significantlyAd Spend Digital In all five markets the decline in digital advertising was lower than the drop in television ad spend The ad spend loss was the lowest in the US where SMI reports the yearoveryear decline was quotonlyquot 97 Once again the ad spend decline was greatest in Canada where digital media dropped by 224 The decline in the three other markets were all somewhat similar Australia was off by 151 New Zealand was down by 154 and the UK declined by 161Ad Spend Other Media The ad spend decline for other media types ie radio print outofhome etc was greater than either television or digital SMI found the decline was lowest in New Zealand which had a yearoveryear falloff of 238 followed by the UK at 279 In the US the ad spend for other media types fell by 317 while Australia decreased by 347 Meanwhile Canada39s ad spend for other media was nearly cut in half at 48Product Categories Needless to say a large majority of product categories cut back the ad spend across all five Anglo markets Many of these product categories were impacted by consumers under stayathome orders No surprise that the ad spend for travel services was the hardest hit Over the first six months of 2020 the product category had the biggest yearoveryear falloff in ad spend in three markets New Zealand 65 Canada 59 and the US 53 Travel ranked second in Australia with a dropoff of 51 and third in the UK with a decline of 46In Australia the falloff in associationspolitical was the highest of any product category with a yearoveryear decline of 82 In May 2019 Australia had held a federal election to elect members of Parliament In the UK the ad spend for gambling was down by 57 the most of any product category Members of Parliament in the UK had asked the betting and gambling companies to cease advertising their products on radio and television during the pandemic and many compliedThe decline in ad spend in other product categories varied by market as many of them were impacted by the stayathome orders and the economic slowdown There were a few common product categories that cutback their ad spend in multiple Anglo markets For example entertainment or moviescinema ranked in all five markets automotive ranked in four markets UK the exception and retail ranked in three markets New Zealand and Australia the exceptionsThere were a few bright spots in product category ad spending In the US pharmaceutical ad spend increased by 83 In the UK technology ad spend was up by 10 In Australia the ad spend for domestic banks was up 7 and inhome entertainment grew by 65 New Zealand saw government ad spend increase by 34 as several government departments bought ads from media providers to offset the loss in ad revenue from the pandemic Also in New Zealand the ad spend for household supplies was up by 28 Canada was the only market in which no product category had increased their yearoveryear ad spend for the first half of 2020 CPG led at 10US Ad Marketplace For 2020 Looking ahead SMI forecasts positive ad growth in third quarter with close to or even above pre pandemic ad spending levels expected by fourth quarter In calendar year 2020 SMI projects the national TV ad spend will have a yearoveryear decline of 91 with the total market ad spend dropping by 78 SMI expects a quicker recovery in the US ad marketplace because of the strength of digital media This is due in part to the expectation there will be a more permanent shift in ad spend from other media types into digital which also happened in the aftermath of the 2008 recessionWe look forward to seeing how the next 6 months plays out hope the return of live sports more original programming and pent up consumer demand will ensure the back half of 2020 is far better than what we have experienced in the past four monthsClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

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SMI Ad Spend Report: U.S. Best Performing Global Anglo Market in First Half

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James Fennessy

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SMI Ad Spend Report: U.S. Best Performing Global Anglo Market in First Half

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