With news updates coming in daily and changes being ongoing, PerformanceIN will be bringing you a weekly roundup of the latest information on the Coronavirus pandemic and its impact on the wider digital marketing industry.
Here are just a handful of some of the top news stories this week:
Ads pulled, starving sites from revenue
Following reports of online traffic spikes on publisher websites and commerce content, BuzzFeed has found out this week that despite the unprecedented surge in news readership, activity hasn’t actually led to advertising revenue. Furthermore, advertisers are pulling back on running ads that would be placed next to content reporting on the Coronavirus pandemic.
In response, large news outlets are calling on advertisers to let their placements show up because that’s how they support their journalistic efforts.
More budget cuts
To no surprise, advertisers and brands continue to pull or cut back on marketing budgets in response to economic uncertainty. Airbnb is the latest of many to pause on their budgets due to the pandemic, in a move which will save $800m a year.
Meanwhile, retailers continue to suspend affiliate programs, impacting the income source of many content creators. Walmart this week announced it’s the suspension of its programs currently running.
Pressure on ad tech industry
The economic volatility caused by the coronavirus pandemic has stressed ad tech and accelerated consolidation. This week saw Cavai call out to the industry to do more to support suppliers and people during this time, while Digiday has reported of companies being in “freeze mode” as the current climate continues to strain the ad tech licensing model.
Revising approach to consumers
Software company eyeo reported that the advertising industry will need to adapt in order to recoup lost revenues, this included advertisers adapting their approach to consumers online with altered needs. Marketers will also need to address them with relevant ads in a calm and non-intrusive manner.
WPP launches pandemic savings plan
With its market performance impacted last month, global advertising agency WPP has unveiled a coronavirus savings plan to retain its market position while continuing to serve its clients during this crucial time.
Events and brands pulling out
It was just announced that Cannes Lions Festival has been cancelled for 2020, despite it being rescheduled for October this year. According to AdAge, The move comes after several agency companies pulled out.
Meanwhile, Amazon has dropped out of the Interactive Advertising Bureau’s Digital Content NewFronts, which on Tuesday was moved to the week of June 22 due to the coronavirus pandemic, according to Adweek. The e-commerce giant was set to make its debut as a presenter and said it plans to attend the NewFronts in the future.
Amazon joins others in pulling out of the annual pitch to advertisers and media buyers. Twitter withdrew last week, prior to the event’s rescheduling; Walmart’s streaming video-on-demand service Vudu dropped out three weeks ago and the agency Digitas told Adweek via a spokesperson that it is focusing on employees and clients for the time being.