This week, Magna announced the global ad market would shrink by seven percent, or $42 billion. Despite this, a new study from Viamedia shows marketers are quickly adapting: in response to the pandemic, 83 percent of local US businesses have overhauled their marketing strategies.
The survey, “How Can We Help Through the Pandemic,” found that, despite the economic downturn, there remains a strong need for advertising—45 percent of business owners from various industries say they’re seeking creative incentives for advertising. Forty percent of respondents also reported an annual marketing budget of at least $75,000, 39 percent of which they allotted to advertising.
In an attempt to pivot, 46 percent of respondents say they’re offering incentives and promotions to drive sales and continue operating during the downturn while 10 percent have shifted to digital during store closures and nine percent plan to expand.
Still, 28 percent are looking for guidance on how to change their marketing strategy to weather the pandemic.
Many respondents expressed optimism over their post-pandemic futures, with 36 percent saying they felt their business would be the same as it was pre-pandemic.
Viamedia’s findings are based on a survey among business owners (59 percent) and advertising agencies on behalf of businesses (29 percent), conducted between May 15 and May 27.
The CMO Survey’s COVID edition survey echoed similar sentiments, namely marketers are doing more with fewer employees. For example, despite nine percent of marketing jobs being lost due to the pandemic, 30.3 percent of marketers have experienced no change in their overall marketing budgets and 62.3 percent report that the marketing function has grown more important amid the pandemic. In fact, 41.3 percent have reported gains, whereas 28.4 percent have reported losses.