SMI Measures Mar–May Ad Spend in the US, UK, AU, NZ and CA Markets
SOPHISTICATED media advertising markets are averaging a 28.2% decline in advertising expenditure in the first wave of the COVID-19 pandemic, according to expert data analysis by the world’s leading advertising intelligence company.
Standard Media Index, which collects and publishes media Agency payment ad spend data, based the analysis on its collection of advertising payment data from its multinational and independent media Agency partners in the US, UK, Australian, NZ and Canadian markets from the start of the pandemic in March to the end of May.
The one common factor was that all markets reported record ad spend declines in the three-month period
SMI Global CEO James Fennessy said that while the actual levels of decline varied by 14.3 percentage points across the five markets, the one common factor was that all markets reported record ad spend declines in the three-month period.
“This global pandemic is having an impact on advertising markets which is far more severe than what we ever reported during the 2008/9 global financial crisis when the size of the year-on-year declines being reported each month never reached more than 16%,’’ he said.
“So this has been an unfortunately unique experience given the sheer size of the ad spend declines being reported. The fact the average decline is an extraordinary 28.2% really highlights the level of devastation wrought on some of the media markets where we track ad spend.’’
Canada hardest hit
Fennessy said the largest three-month decline has been in Canada where total national marketer ad spend fell 36.2% over the Mar-May 2019 period while the lowest decline has been in the UK where the total is back a lesser 21.9%.