We are sitting in a continuum. What happens to advertising during a recession On the left is a stopped marketer. Most advertisers were on the far left of this continuum in March and didn't know what to do, so they hit a big pause. Many stay here until April. According to the IAB report above, this is 16%. They still live there and may not move to the right due to need or fear. But the advertisers looking at the opportunity for adversity are on the right. They buy high-quality audiences, creative abilities, and inventory. They are looking at each part of the advertising process: audience. Message and creative. Offer or CTA. Their media purchase.
How they measure They are thinking about ghost mannequin effect ways to get the most out of what they have given to the situation their business is facing. This is why moving to the right is the right thing to do now. Now let's see what happens to the advertising market when a recession occurs. What happens to advertising during a recession 1 It's a classic story. Supply (advertising inventory in this case) will increase. Demand (in this case, bidding and spending) will decrease. Therefore, the price also goes down. Facebook and Google don't provide advertising space, but CPM has plummeted as businesses freeze, suspend, or withdraw spending. According to Gupta Media, Facebook's global average CPM for April fell to a record low of $ 1.95. Two-thirds of ad sellers, including publishers, platforms, and programmatic media sellers, have had their ad rates declining since the COVID-19 blockade began.
Therefore, another interesting thing happens in this dynamics. Not only will the price go down, but the noise will also go down. Be powerful, useful, creative and prominent. It creates new opportunities that weren't even a few weeks ago. The price is still optimal as we are in an ideal location in some respects where demand is still low. As demand increases, so does the price. What history tells us what to do Let's see what history teaches us. Great Depression (1930) Fast-moving consumer goods Kellogg won during the Great Depression, but their main competitor, Post, failed. In the late 19's and 20's, these two companies (Kellogg and Post) dominated the market for packaged cereals. It was still a relatively new market. Ready-to-eat cereals have been around for decades,