Global media advertising spending is projected to grow 3% less in 2020 than previously predicted due to the coronavirus, according to eMarketer forecasts.
The company predicts that digital and mobile, but also out-of-home, TV and radio ad spend will increase by 7% to $692 billion, down from an estimated 7.4% to $712 billion.
These estimates are based on the hope that things will return to normal in the second half of the year following the containment of the virus.
It also assumes that the Olympics will take place during the summer 2020.
eMarketer has based much of its downward forecast on China, where media ad spending is estimated at $114 billion, down from $121 billion for 2020. China is the second largest advertising market after the US.
The research analysts also downgraded China’s 2020 ad spend growth rate from 10.5% to 8.4% because of declining expenditure across digital formats.
Overall, digital ad spend is still expected to grow 13% in 2020. However, that’s 2.2% less than previously predicted.
And as some global companies depend on Chinese stock, their ad spend is likely to dip as consumer demand for certain products wanes.
Yet, eMarketer admits that it’s too early to tell if corona will have a long-lasting effect on travel and tourism industries. China is already showing signs of an economic turnaround after fewer new cases have been reported in recent weeks.