Back
Coronavirus: How the advertising industry is changing
May 28, 2020
The first rule of advertising is that your adverts have to be seen to have any effect.
This is why if you have managed to get out of the house recently in the UK you might have noticed that there are an awful lot of adverts supporting the National Health Service, and key workers on billboards and bus stops.
As Anja Lambrecht, professor of marketing at the London Business School, explains, it is one of the signs that the advertising industry is struggling.
"It is most obvious outdoors with billboards - no-one is driving past them, so no commercial firms are advertising," she says. "That is why they all have adverts for the NHS."
On TV an ever-growing number of us are increasingly watching streaming services such as Netflix and Amazon Prime, which don't have any adverts. Meanwhile on traditional commercial TV channels, there are lots of advertising breaks with very few adverts in them.
Image copyright Getty Images Image caption TV revenues are down on both sides of the Atlantic, with Fox one of those affected in the US
In the UK, ITV's advertising revenue was down 42% in April, while Fox in the US has seen revenues halve. It is a similar picture in other markets, because there are many products that are just not selling at the moment. So why advertise them?
Take the car industry - sales in the UK in April fell 97%, and are at the lowest level since 1946. They also fell by almost 50% in the same month in the US.
6Shares
0Comments
1Favorites
3Likes
Say something to impress...
Loading...
Comments
Hot

No content at this moment.

Relevant people
BBC News
134121 Followers
News and more.
Related