Hopes for a quick, V-shaped recovery are all but gone. Respondents were notably more likely to anticipate a major effect on their ad spending extending into Q3, at 43% in April vs. 28% two weeks earlier. Only about one in 10 respondents expected little or no effect in Q3, compared with about one in four in the first wave. And respondents were more pessimistic about Q4 as well.
US advertisers also reported having taken more steps to pull back on their spending. The share that said they had stopped a campaign due to launch later in the year rose by 15 percentage points between the two waves, and the share reporting they had canceled a campaign completely was up by 10 points.
The Interactive Advertising Bureau (IAB) also surveyed media buyers in mid-March. In early April, the IAB conducted a second survey among publishers, media companies and programmatic partners, including supply-side platforms. The initial research had found that 70% of ad buyers were changing their spending plans. According to the sell-side survey, about the same share of ad sellers were re-forecasting their own ad revenues for March through June.
But it seems sellers may not have fully caught up to buyers in downgrading their view of ad spending during H1 2020. Sellers expected digital media budgets to be 21% below plan, while buyers pegged this figure at 33%, for example. Across digital formats, sellers expected significant, double-digit cuts to budgets, but not as great as what buyers had said they expected in mid-March.