The coronavirus is having a wide-spread affect on various industries and advertising is no exception.
Research firm eMarketer recently revised its forecast for China which suggest that ad spend in the country for 2020 was down 6.2% to $113.67 billion.
The company had previously predicted that advertising spending in the country would grow 10.5% to $121.13 billion. It would make the slowest growth in the country since tracking started in 2011.
The print market is among the worst hit.
“As people are forced to stay home during the outbreak, residents of China are buying fewer print newspapers and magazines,” said Brian Lau, eMarketer forecasting analyst. “Delivery services are also being interrupted. This means that the already struggling print ad market will see even lower demand.”
Print ad spend is forecast to drop 16% to $2.4 billion while magazine ad spend will decrease 12% to $450 million.
Meanwhile, out-of-home ad spend is stalling due to fewer people moving round growing just 0.7% in 2020 as opposed to 2.5% predicted before.
Within digital ad spending, growth is expected at 13% to $81.06 billion.
“Overall negativity and more cautious spending from advertisers mean that digital ad spending will not be immune to the coronavirus,” said Lau.
“But the impact is less severe than traditional media, mostly because mobile ad spending is still showing strong growth. This is in part because people are shopping online more during the outbreak. They are also turning to online news sources for information about the outbreak. These factors will buoy advertisers’ appetite for digital ads.”