Adspend: The winnowing begins
As Covid-19 hits the economy, companies are already withdrawing planned spending on advertising and marketing campaigns, a signal that the ad industry will be hard hit
Covid-19 is starting to hit the local ad industry. Small or boutique agencies are concerned that the three-week lockdown will force them to shut up shop.The FM is aware of at least six small agencies that have already had discussions with staff and clients to that effect. Says one owner: "If our clients are not panicking, they are certainly worried and are asking us to put a hold on jobs."Another says: "There is no doubt that my business will be affected. While we still have a pipeline of work right now, I expect that to start slowing down in the next fortnight, particularly if the lockdown is extended."These concerns are reinforced by a new survey from the World Advertising Research Centre (WARC), which says that by the end of June the ad industry is likely to feel the full effects of the looming global recession.However, says the centre, brands in the fast-moving consumer goods (FMCG) sector are better positioned, so locally this would give some comfort to advertising and media ag...
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