SYDNEY, Today: April adspend in Australia & NZ is on track to decline 25% to 30%, according to early figures from the Standard Media Index, reported in Mumbrella (scroll down for the link).
Despite the dramatic drop, SMI AUNZ managing director Jane Ractliffe said more dire predictions of a 50% to 60% plunge “will just not happen”.
She said the impacts of Covid-19 on the market may not be as bleak as has been predicted.
“Some media are tracking well from an agency perspective and many large product categories have continued to grow their media investment in April.
“The worst-case scenario of 54% for NZ just will not happen.”
“Even if another ad was not bought in the whole of April, the worst-case scenario for the AU market is a decline of 55% and 54% for NZ.”
She said that ad revenue being stripped from small businesses will be the reason if any mediums experience drops of more than 50%.
“If media are seeing declines of more than 50%, that will be more due to the devastating impact of evaporating advertising from the small business sector given much of that part of our economy has closed.
“Media agency demand is not falling anywhere near the same level.”
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