PMAR Mid-Year Review 2020 lists 5 reasons to cheer

While COVID-19 did affect market sentiments in a major way, a comeback now seems quite possible, dispelling the pall of gloom to a great extent.

The Pitch Madison Advertising Outlook H1 2020 reveals that AdEx contracted in Q1 by as much as 8%, and that the drop for traditional media was much higher. The H1 Outlook also indicates that AdEx may well recede to 2017 or 2018 levels.

However, it has also enumerated some positives that can help us look at some reasons to cheer.

Revival of AdEx
June has brought in cheer for TV AdEx, signifying that some categories cannot afford to stay away from TV advertising for too long to sustain their shares and for fear of losing share to competition. This is also an indication that advertisers have confidence that demand will revive and advertising can play a big role in fuelling it. This revival has sustained in July and indications are that it will do so also in August.

Increased Spends by FMCG
FMCG increased its dominance in TV AdEx with a share of 56%, higher than the 2019 figure of 49%. his is primarily due to increase in advertising by newer COVID categories in personal hygiene, such as sanitiser, hand wash liquids, disinfectant sprays and multiple products related to immunity building.
Spike in Social Advertising

e-comm rules big
In Q2 2020 more brands used social platforms to maintain saliency in the absence of other traditional media. Interestingly, Display advertising took a sharp hit whereas Search maintained itself in third position. E-commerce advertising platforms have made their presence felt, maintaining a 10% share.

Increase in OTT User Base
Due to lockdown and fresh content on OTT platforms, it has seen a surge in user base and time spent, not only through mobile phones but also through connected TV. Interestingly, channels have started offering advertisers a combined deal for Video, covering both TV & OTT, as TV-plus, especially for their impact properties.

Rise of New Partnerships
In order to minimise the losses, most of the radio stations got into partnering with OTT music streaming apps and made their content available on these platforms. Many stations also promoted heavily their digital assets and extensively used social media to entertain people through digital concerts and live chats with celebrities.