Advertising is a victim of the Covid-19


The controversy over share in the pie of advertising between online and traditional media seems to have a predetermined winner.

Prior to the coroner’s outbreak, global investment in advertising was estimated to increase by 7.1% in 2020 compared to the previous year.

It is now estimated that there will be a violent downturn of 8.1%, which is equivalent to nearly $ 50 billion as a result of changing consumer behavior. The total loss is even more pronounced at $ 96.4 billion, given the growth forecasts before the pandemic.

The chart below was created by the VisualCapitalist online team, which used data from the World Advertising Research Center (WARC) to illustrate the estimated decline in advertising spending by sector and category of advertising medium.

As advertisers adapt to increase the means of promoting home advertising, the controversy over the share of advertising on the pie between online and traditional media seems to have a predetermined winner.

The crisis of traditional media

After decades in which experts predict the end of traditional forms of advertising, the corona pandemic could be the last nail in the coffin.

In fact, spending on all types of traditional advertising will decline in 2020, while most forms of online advertising are expected to increase.

In the medium term, this era will be identified with the acceleration of growing trends towards more digital consumption, consequent trade and digital advertising, “notes Dr. Daniel Knapp of the European Interactive Advertising Office.

With consumers spending much more time at home, companies have more dollars in certain forms of advertising. However, when it comes to traditional forms of advertising at home, such as television, consumers choose online media instead, such as news streaming services. In fact, online viewing services such as Netflix have doubled their performance compared to last year.

Estimates of advertising costs by industry

Almost all industries will have a reduction in advertising spending. The only category that will outperform the negative trends is “Telecommunications and Public Utilities”, which will face a 4.3% increase in advertising spending throughout the year. Interestingly, home stay restrictions have increased consumer confidence in these services to stay connected to their loved ones and work from home.

In addition, the pandemic has proven to be a turning point for the telecommunications industry, as the importance of faster internet speeds is emphasized as the 5G dynamic is exploited worldwide.

The road to recovery?

 When inflation and exchange rates are taken into account, the reduction in advertising spending is expected to be worse than what was observed during the global financial crisis. Although 2021 shows signs of recovery, the WARC notes that this reflects how sharp the decline will be in 2020.


The data show that restoring global advertising spending to pre-financial levels has lasted about 8 years, so a quick recovery from the current crisis seems almost impossible and a return to pre-pandemic growth rates may not be possible for several years.

The changing advertising landscape

Advertisers are experiencing a new reality, facing the uncertainty of changing consumer behavior and the possibility of a second wave of virus outbreaks.

In terms of advertising media, could the coronae accelerate the inevitable transition to digital media or is the crisis for traditional media temporary?

By Xenios Mesaritis