Marketing 2 min read

eMarketer Report Predicts a Decline in Social Ad Spending This Quarter

weedezign / Shutterstock.com

weedezign / Shutterstock.com

A recent eMarketer report revealed how the COVID-19 pandemic would affect social media advertising in the second quarter of the year.

For the past months, the coronavirus pandemic has forced governments across the globe to impose country-wide quarantine and lockdowns. Businesses were shut down, and people were asked to work from their homes or were laid off.

As with other industries, advertising, mainly social media ads, is also suffering from the economic impact of COVID-19. The following are some of the valuable insights shared by eMarketer‘s Principal Analyst, Debra Aho Williamson, in her report.

eMarketer Report: Social Media Advertising in Q2 and Beyond

According to Williamson, Facebook‘s CPM ad pricing fell by around 50 percent last month. Meanwhile, Snapchat reported more substantial revenues in Q1 of 2020, but its year-over-year growth in March declined by less than half of its rate in January and February.

Meaning, despite the high engagement social media are experiencing these days, marketers are still pulling back on their ad spendings.

However, some marketers are continuing to advertise despite the health crisis. Williamson explained that the lower ad prices are still attracting some companies.

She said:

“Businesses in industries such as technology, telecom, and consumer packaged goods (CPG) continued to spend to reach consumers whose daily activities shifted once they started spending more time at home.”

In Williamson’s eMarketer report, she projected that social media CPMs (cost per mile) would still suffer this quarter. What’s worst is that it might continue in the following months, depending on how fast the U.S. economy would recover.

The eMarketer analyst also noted that advertisers are now focusing more on brand messaging than performance-oriented advertising. Also, Williamson expects a decline in social ad spendings in April. But, the situation could improve in May and June.

In general, eMarketer predicts that social ad budgets would decline by up to 28 percent between March and June.

For more details, you may get a copy of the full report here.

Read More: Coronavirus To Impact Advertising More Than The 2008 Recession

First AI Web Content Optimization Platform Just for Writers

Found this article interesting?

Let Chelle Fuertes know how much you appreciate this article by clicking the heart icon and by sharing this article on social media.


Profile Image

Chelle Fuertes

Chelle is the Product Management Lead at INK. She's an experienced SEO professional as well as UX researcher and designer. She enjoys traveling and spending time anywhere near the sea with her family and friends.

Comment (1)
Most Recent most recent
You
  1. Profile Image
    Jared Leto May 28 at 10:38 am GMT

    Hello guys I wan to say this to whom it may concern. Investing in crypto was my husband ideal. I trade with sim ceypto platform not knowing they where sc!m and this made me lose almost all I had. Am only happy because I found help after reporting to Mrs Lisa Eric and she helped me recover all I lost to these fake crypto platform. My advice is that everyone need to be careful of the platform you deal with. If you have falling victim of these fake platform do not hesitate to file a complaint to Lisa via he mail ( Lisa.Eric @ proton.me ) she helped me and I believe she can help you too. Stay safe guys. You can visit WhatsApp +84 94 767 1524.

share Scroll to top

Link Copied Successfully

Sign in

Sign in to access your personalized homepage, follow authors and topics you love, and clap for stories that matter to you.

Sign in with Google Sign in with Facebook

By using our site you agree to our privacy policy.