The impact of the coronavirus crisis on the advertising industry has been remarkable. The media have been complaining since the start of the crisis of the pause or cancellation of advertising investment, something very serious for them since they live from advertising, but the data from analysts and market studies have been giving them the reason since then. Ad spend has fallen and been affected.The big question is how much and how it has been affected and which areas are hit the hardest. Thus, for example, a recent analysis has asked how the situation has affected the average price of CPM.The study was prepared by the IAB, based on a data sample of 173 publishers and specialists in programmatic advertising in the United States. His main conclusion is that determining how and by how much CPM prices are falling due to the crisis is somewhat complicated.
You could say that the situation goes by neighborhoods.As noted in AdExchanger , based on the Macedonia Email List conclusions of the study, although some advertisers have paused their advertising investment in general, it has not stopped completely. And, in addition, large companies have continued to take actions to try to reach consumers.As an average and as a general panorama, the industry indicates that they have seen a fall in the CPM: 62% of those surveyed recognize that the cost per thousand has been affected by the impact of the crisis. The data is readjusted when going to the specific vertical. 63% of the media recognize that the fall has been significant or somewhat more compared to what they expected to close in these months before the outbreak of the crisis.
The same is recognized by 57% of programmatic specialists (although here 8% say their prices have risen).The decline in the average prices of the media is marked, as their representatives acknowledge, by the cancellation of campaigns and by the reduction of the advertising budgets of the brands. In general, the media, the study concluded, have been the hardest hit.The hardest hit, for desktop advertisingThe data also varies according to the format with which the ads are associated. On average, the fall in the price of CPM has been 16%, as indicated in the study, but there were those who positioned themselves well above that figure.
The hardest hit was the display advertising and especially the one designed for the desktop. The latter fell 34% in prices. The IAB already predicts that this year will end with a 27% drop in prices for desktops and 28% for smartphone displays.Faced with this drop, the advertising designed for streaming content, both for VoD and for connected televisions, will be the one that best withstands the impact of circumstances. The IAB only expects it to decrease by 6%.It is not the only study that makes it clear that the coup has been different depending on the scenario being analyzed. Another already pointed out that investment in mobile advertising had not fallen and that, in fact, it had shown data of good health. It did so thanks to the pull of video and in-app advertising.