According to IAB’s Coronavirus Ad Spend Impact report, 70% of media buyers have changed their spending habits, with nearly a quarter pausing paid advertising altogether.
Buyers who have continued to spend and remain flexible are buying up high-quality audiences, creative capacity, and ad inventory. They’re navigating the circumstances their business faces because of the pandemic and making the most of it.
Currently, we are facing recessionary impacts with predications lasting through the majority of 2021. This means that ad inventory has gone up, while bidding and spending have gone down. Google and Facebook aren’t necessarily giving ad space away as supply and demand shifts, but CPMs have dropped as companies have paused or pulled back on spending.
Areas Most Affected
A lower demand shift creates an exciting dynamic where it becomes easier for your brand to stand out and take on new opportunities that weren’t previously there in a saturated market. The two channels most affected are social media and paid search because the ads are easiest to turn on and off or pause as needed. That’s where a lot of avenues for paid opportunity have opened. Other channels, such as podcasts, video and search have stayed linear through most of the pandemic and brands can expect to pay similar rates.
What Should Your Company Do?
So, when you think about reinvesting in paid media, there is a strong case for social media and display. Those are the channels that not only offer you the greatest deals right now but also offer you the most flexibility. And flexibility is crucial as we continue to navigate uncertainties within advertising.
TOTAL Advertising has the expertise you need to finesse your paid media strategy. Contact us today and put us to work for you!