In light of the ongoing COVID-19 crisis, the IAB engaged with advertisers and agencies over the past fortnight to understand their ad investment intentions for the coming months.
The survey provides a quick read of the digital ad market ahead of the forthcoming quarterly online advertising expenditure reports that will be prepared by IAB with PwC as per usual (due out May).
The headline result is, not surprisingly, that 85% of brands have changed their digital ad investment over the last month, with more than half of brands reporting they are reviewing their advertising plans at least daily.
21% of respondents indicated they have paused all their ad spend, 57% have decreased some of their spend and 15% have either increased or maintained their spend.
Of those who have decreased spend, 31% reported they are delaying their spend, reporting they are still reviewing whether they will be in a position to invest later. 44% of respondents who have decreased spend noted that this covered brand and performance equally, overall performance and tactical investments have been hit hardest compared to brand investment, with companies adjusting their products and messages in this challenging market.
Gai Le Roy, CEO of IAB Australia commented: “The Australian advertising market is in step with the global experience, with some brands simply not in a position to spend at the moment and the majority of other brands adjusting their spend, creative messaging and tactics to suit the current market.”