The ultimate concerns are declining ad spend and other fallout including job losses. (over 80%)
Discussion with the industry about the impact of the COVID-19 pandemic and what the future will hold once this is all over resulted the following:
- Over 80% of respondents were concerned about their jobs.
- Long-term impact on revenue … a big portion (90%) of their revenue have been lost.
- Newspapers and Out-of-home (OOH) players were feeling the hit the most, practically these media had become obsolete (less important).
- The majority agreed that the recovery period would be a year or a bit more before things are back to normal. However, a few optimists thought six months was about right (18%).
- There would be different positioning and groundbreaking shift across the industry which will determine who will still be surviving post-pandemic.
- Over 50% of respondents expressed concern for the devastating impact on small independent agencies, as well as the number of job losses that will occur.
- Clients will be even more cautious with spends, less risk will be taken on ideas, new platforms etc. Certain industries will be forever adjusted (travel, entertainment, hospitality, hotels, as an example).
- Since 2018, shrinking budgets have been a concern and due to pandemic would shrink further … clients would revert to safe ideas and move more in-house.
- More than 75% said that work had slowed for them already and their job had been impacted. Of those whose jobs have been impacted, some of the most common responses:
- salary cuts
- less hours
- forced annual leave
- unpaid leave
- Among the more positive, respondents viewed the pandemic:
- An opportunity for innovation
- A return to effectiveness
- Brand-building over cost-cutting
- A move to further flexible working arrangements.
- Despite unique environment of office life, majority of respondents believed that they were able to focus more without the distractions of meetings and the chatter among the office.
- Flexibility was also a highly cited benefit to working from home as people enjoyed working on their own terms.
Breakdown of Respondents:
- Senior management (22%)
- Executive (35%)
- Mid-level (43%) roles.
The survey was conducted 3rd – 24th May 2020 with 47 respondents.