When we also look at how many businesses are closing and cutting spending it would make sense that advertising is cut, I think that advertising when your product cannot be purchased online or via delivery is also cut off a lot of businesses since before they could advertise and take the knock of a low conversion as customers who eventually walked in the door spent big to cover the margins.
As someone in marketing, I can see the effects, but in some cases we also see advertising spike as there's a bigger concentration of ads lets say for food delivery or buying contact lenses online then there was before, not that it offsets the losses in the other industry
overall its a massive drop, marketers and businesses are going to have to become smarter and leaner with their marketing campaigns
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This is an interesting aspect. While I wouldn't call my experience in the advertising industry representative (too short, only at one agency albeit a major one, early in the switch to mobile first Era) many brands just don't offer any possibility for agility as digital and traditional are different budgets.
So this is mostly left to smaller and more nimble brands, and also brands which aren't on retainer since in the latter case the internal agency departments will fight to protect their own revenue.
In many countries the digital adspends are whole new budgets actually, not just taken from traditional adspend. Those budgets have grown so quickly that they became whole new wallets. Additional spending.
Here in the Philippines everything can be ordered. While essentials/groceries is rather recent - earlier attempts never worked because the monopolies of few local corporations - we can even order prescription glasses since several yeats, with an assortment of more than 500 frames and delivered within 5 days. What we don't really have are the larger items, like bigger furniture, which would be covered by mail order catalogue brands in first world (another dying dinosaur).
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I'd say you're right and I want to know how quickly this shifts, people may not buy as many magazines and newspapers, they may not watch as much TV as before or rather its not as impactful as it once was so the margins don't justify the spend.
Online magazines are also often heavily subsidizes as their income from ads isn't always enough so they also get hit and closed down, I've seen a few local news sites here close already the online ad network has overall also shrunk so there's less spend going around than before and sites had staff and expenses based on that, the knock-on effects are far too much for us to imagine
We're only really starting now with groceries and a few more artisanal items in South Africa, we do have some general retailers but their service isn't very good in terms of online.
Lol I used to work on an online furniture brand it was an absolute bloody nightmare, not even Ikea wants to do it, in fact in Dubai they rather pay you to come to the store and get your own stuff, that's how much they want to avoid doing furniture eCommerce sales.
ENGAGEtokens.