The following chart was developed in accordance to data collected from a survey ‘Coronavirus Effect on Advertising Report’ by Advertiser Perceptions dated March 26, 2020. The respondents were ad agencies who decreased their spending due to the pandemic.
For the first quarter, 34% of the respondents believed that it had had a major effect on the economy whereas, 31% said the impact wasn’t that big but it was considerable. 22% said the impact was minor whereas, 13% said price cuts had made no positive impact.
The most prominent effect according to respondents is to be seen in the second quarter. 69% of the respondents said that the impact of price cuts and budget cuts would have greatest effect in the second quarter out of all the quarters. 26% believed the impact would be moderate and they’d be reversible. 3% and 2% believed the impact would be minor or null, respectively.
According to survey, it is likely the impact of the second quarter will continue on to the third quarter however the impact might not be as major as preceding quarter. 28% of the respondents said the impact would be major whereas 46% said the impact would be considerable but not as drastic. 23% believed that the impact would be while 3% said the impact would be zero.
Professional are hoping the situation will go back to normal by the fourth quarter and business can be resumed as before however, 11% of the respondents believe that the impact in the last quarter will drastic while 32% believe they’ll be moderate but not as great. 38% respondents agree with the professionals’ point of view and agree that by September the impact will completely minimize.
Whereas, 19% believe that by the end of the year there will be no impact.