Current effect on Ad spend and Post-Corona prediction by our Co-founder Peo Persson
It has hardly escaped anyone that the advertising market, along with most industries, is taking a massive hit by the COVID-19 pandemic. According to a new report by IAB US, nearly ¾ of media buyers, planners, and direct advertisers believe that the current crisis will have a more significant impact on advertising than the 2008 financial crisis. Seventy percent of buyers have already adjusted or paused their planned ad spend.
Furthermore, a study conducted by Econsultancy shows that even though the majority of marketers (77 percent in the UK and 64 percent in North America) predict consumer delays in significant spending decisions, most also predict a rise in other areas. Ninety-one percent of the UK and 87 percent of North American marketers predict an increase in the use of online services.
Given COVID-19 impact on the advertising industry, it is clear that self-service ad-buying platforms will play an essential role in the future of the industry. We predict that when the COVID-19 pandemic is over, the small, medium-sized businesses (SMBs) will sit on a large stock of inventory, and a significant need for building awareness.
It will become even more difficult for SMBs to get the awareness of their service or products because the market will face the most prominent competitiveness that we’ve seen in a long time. Media buyers, planners, and SMB advertisers will have a hard time getting their orders, paused campaigns, creatives, and change requests processed by the traditional media AdOps organizations. This due to the fact that they will be understaffed and overworked. AdOps’ focus will be serving the larger brands, media agencies, and planners, which in turn will drive the local and regional SMBs to increase their advertising on social networks.
The traditional media could quickly solve their internal issues by following the same steps of Hearst Magazine, TripAdvisor, eBay, and Bloomberg Media by evolving Ad Operations into a self-service model, offering self-service ad-buying features. By providing self-service tools, media owners can accept low-value deal and reduce Ad Sales and AdOps workload by 90%. Working with the right self-service infrastructure that syncs with all internal Ops and Management systems, all campaign information will be automatically passed into the operational system from the advertisers’ order check-out.
DanAds relevant expertise, passion for the Ad technology, market knowledge, and commitment to results make us the global leading provider of sophisticated self-service ad technology, and your best partner to start guiding you to evolving your Ad Operations into a self-service model.
Peo Persson, Co-founder and Executive Vice President Sales, DanAds