Coronavirus concerns causes China's ad spend forecasts to drop
As the spread of coronavirus makes an impact on investment and economic success around the world, statistics from Emarketer have shown that ad spend growth in China is set to slow.
Where before, forecasts for 2020 stated that the ad market would grow 10.5% year-on-year to $121.13 billion, the growth is now expected to be 8.4% YoY to $113.7 billion, a rate not seen since Emarketer began recording ad spend in 2011.
Newspaper spend is expected to be down 16% and magazines by 12%, demonstrating incredibly tough times for the medium - original forecasts had already predicted an 8.6% drop for newspapers, and a 5% drop for magazines. OOH growth rate will weaken to 0.7%, from 2.5% previously.
Emarketer expects a return to business as usual in China by the second half of 2020.
Jasmine Enberg, Principal Analyst at Emarketer, said: “We’re monitoring the situation. We’re cautiously optimistic there will be a turnaround. We’re seeing signs of that starting in China, where it seems like the worst of the outbreak is almost over.
“We’ve seen in other times of economic uncertainty that advertisers turn to platforms that have proven ROI... These are the big walled gardens like Google and Facebook.”