The latest Bellwether report from the Institute of Practitioners in Advertising (IPA) in the three months to October, UK ad budgets were reduced drastically, representing the second-biggest decline since records began.
The record-breaking erosion of UK marketing budgets slowed in Q3 of 2020, according to the latest figures from the IPA Bellwether Report, although a -23.3% fall in spend on advertising is still predicted for the year as a whole.
The Q3 2020 IPA Bellwether Report indicates that a net balance of -41% of panellists saw their marketing budgets cut in the third quarter (up from -50.7% in Q2). The result represents the second-quickest decline since the survey’s inception in 2000, only superseded by the reduction in the second quarter of this year.
Martin Vinter, Managing Director, Media at Ebiquity, said:
With the continued challenges presented by COVID-19 and the associated societal restrictions, it is no surprise that the advertising and media market continues to observe profoundly suppressed investment levels.
While the downward trend is being bucked, recovery is going to be even more prolonged than some expected. The uncertainty continues to weigh heavy on the industry, as it does on all industries. Advertisers will need to focus on a “recovery strategy” that considers the distinctiveness of each medium – even more so than before. Audiences and eyeballs are holding up generally for TV and digital – even increasing in some areas – but, naturally, it is a different story for areas like OOH and cinema.
Reaching relevant audiences is getting harder – especially the ever fickle 16-34’s. Hence, pathing a road to recovery should focus on short term as well as long term metrics. Impacting brand and direct metrics in the current environment requires the full media planning toolbox. The craft of media planning, as well as a focus on media analytics and effectiveness are the three key factors in the path to recovery for advertisers.”
To read the article in full in Digital Strategy Consulting, click here.
First featured 22/10/2020.