How the coronavirus is impacting the advertising business as sports TV viewing evaporates and consumers stop spending
- The coronavirus pandemic is upending the advertising business, along with other swaths of the economy.
- Here is a breakdown of how the pandemic is impacting advertising, from events cancellations to buzzy startups whose sales are tanking.
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The advertising business has been upended by the coronavirus, along with other sectors of the global economy. Events and in-person pitch meetings have been cancelled, advertisers have hit the breaks in spending as sales plummet, audiences for live sports have fallen, and the threat of layoffs at impacted companies looms.
Amazon experts and sellers say that brands that sell essential goods are advertising more on the e-commerce platform while brands that sell discretionary items like clothing are struggling for sales.
Get the details here: 'It's a total bloodbath:' 5 Amazon sellers and experts share stories of turbulent sales amid the coronavirus outbreak
The number of major cancelled sporting events continues to grow, causing a headache for TV networks who are betting big on live sports for ad revenue and advertisers who have to find those audiences elsewhere. According to ad-buying agency Magna Global, the networks that were planned to air live sports can expect to take a drastic viewership hit.
JPMorgan Chase analysts said the largest and most heavily leveraged companies, like WPP and Publicis, and those most exposed in Asia, like Dentsu, are most at risk from advertisers cutting spending, while IPG could fare better because of its data and healthcare business.
See the breakdown on how holding companies could be impacted: Here's how analysts see the coronavirus impacting the ad holding company giants like WPP and Publicis
Live events have been particularly devastated by the coronavirus as in-person gatherings have been cancelled to prevent the spread of the pandemic, forcing related businesses to pivot.
Read how one is working through the crisis: How an events agency that has worked with Hilton and Barack Obama is safeguarding its business as the coronavirus wreaks havoc on live events
Advertising hasn't completely stopped, so some ad agency pitches are continuing, but the move to a virtual process takes an adjustment for agencies. Pitching remotely is particularly challenging since chemistry between agency and client is key to winning a pitch.
See what advice agencies are getting: Top consultants issue coronavirus guidelines for ad agencies as they pivot to remote pitches
Some buzzy Silicon Valley startups that were modeled on explosive growth are seen as particularly vulnerable as people hunker down and stop spending. Some from men's health startup Ro to new parent-aimed Frida are finding ways to try to stay foremost on consumers' minds.
