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14 Statistics on Covid Impact on Advertising Industry in 2021

6 Mins read

Covid 19 has impacted much on the advertising industry just like the other sectors across the world’s economy. Advertisers have slowed down in spending since the sales declined. The live sports audiences have also dropped. 

Moreover, the PR agencies, advertising, and media firms have laid off some of their workers. The pandemic has disrupted the works for lots of projections about the future of the industry. The reason being the funds got slashed and the campaigns pulled.

During early March last year, it was predicted that the ads industry in America will encounter losses in revenue. A decline of more than 10 percent. However, reports indicate several advertising channels are anticipated to bounce back this year. 

Others have demonstrated resilience despite the prolonged pandemic. The advertisers have also seen new paths opening up. This has been caused by the shifts in patterns evoked by the coronavirus. 

There are tons of facts and figures related to covid 19 impacts in regards to the advertising industry. Let’s take a look at the statistics in detail. The information will give you an overview of how the Ads Industry is fairing amid the crisis.

Advertising Industry Statistics & Facts: The Highlights 

  • There was a double Ad spend on E-Commerce in the U.S. between February & early March in 2020
  • 34 percent of the advertisers canceled Ads campaigns.
  • The travel sector Ads spends decreased by less than 70 percent.
  • Amid the pandemic, the Telcom Industry continued advertising.
  • Forecast search Ads spend is predicted to be above the pre-covid predictions by 2022.
  • The radio advertising spend is anticipated to rebound this year.
  • There has been a drop in Ads at sports events.
  • The U.S advertising sector set to recover whatever it lost in 2020

1. Ad spend on E-Commerce in the U.S. increased with the onset of covid-It was double between February & early March in 2020

As the pandemic led to a substantial change in American’s shopping patterns, E-commerce firms increased their spending on advertising. Advertising spends from the companies made twice as much. From 4.8 million dollars in mid-February to 9.6million dollars in March.

(MarketingDive; Influencer MarketingHub)

2. 34 percent of the advertisers canceled Ads campaigns.

Most of the online publishers in the United States reported they had advertisers wait or cancel Ad campaigns they were to have. This happened even as the covid pandemic and the restrictions continued to hit hard on the advertisers. This has in turn led to cutting on expenses and also rampant layoffs as the consumption by the media continues rising. 

The consequences are getting noticeable across the ads-aided websites plus the firms providing technical infrastructure to help in selling ads. The advertisers have withdrawn considerably due to the fund uncertainty in the following months. 

And also because some, such as businesses in the travel space, had insignificant intentions to do sales. Those steered campaigns even as more of the world under stay-at-home regulations.


3. The travel sector Ad spends decreased by approximately 70 percent.

Recent reports indicate The American Travel Association announced that travel spending dropped to over 600 billion dollars in last year. This indicated a drop of over 60 percent in business travel spending. The most notable decline in advertising spending is for politics, government, and law.   

This is probably due to governments having refocused their actions and thus shuttering the state departments in several regions. The unfortunate group in the private sector is the travel industry. It nearly came to a halt in multiple locations. 

It shouldn’t be a shock watching the advertising spending decrease since there were no bookings for the vacations. 


4. Amid the pandemic, the Telcom Industry continued advertising.

How fortunate were the telecom operators? The industry has been extra relevant than before. This has been through engaging communities and households as they keep educational institutions and industries logged on. 

Amid this phenomenal time, communication service providers have exhibited a solidity and readiness to act. This is as they give a glance into the current market facts. They are driving the effort for social distancing, online learning, and remote working. 

The telecom industry is one of the biggest advertisers in America. Even with the prolonged pandemic, it was predicted the telecoms would spend over 13 billion dollars last year. They are anticipated to increase their advertising more in 2021. 

(Forbes; InfluencerMarketing Hub)

5. Forecast search Ads spend, predicted to be above the pre-covid predictions by 2022.

The upheaval in the general economic level has led to several predictions. The current forecast affirms that ad spends will surpass the pre- covid anticipations for next year. It is perceived the advertisers will spend over $90 billion on search in three years to come. 

Before the coronavirus pandemic, reports insinuated the spending on search ads would increase. Certainly, it was indicated there will be a constant growth in search ad spending to least past 2023. However, in the initial days of the crisis plus the lockdowns around the globe and online shopping not yet commonplace, there was a decline. 

This is in the online shopping questions, especially the travel sector. Even with the pandemics’ continuation, the online search has recuperated. Online shopping is continuing to be the norm.


6. The radio Ads spend anticipated to rebound this year.

Reports exhibited a cumulative amount paid on the radio advertising market would fall in 2020 because of the impacts of the pandemic. This is before an expected bounce back this year. However, the void in spending between Television and online advertising goes on to expand. 

The aggregate radio ad spend in America was forecasted to fall from 17%  in 2020. Still, the market is foreseen to make a fast come back. This is in 2021 with more than $16 billion before growing larger to slightly above $18 billion in three years. 

(InsideRadio; Influencer MarketingHub;GroupM)

7. There has been a drop in Ads at sports events.

There has been a big number of the suspended advertising which pertains to live sports tournaments. Several sports discontinued their activities, this signifying sports-linked advertising was also at a standstill. There were more than 50% of companies who announced they had no motive to advertise in any way during soccer.

(InfluencerMarketing Hub)

8. United States advertising sector set to recover whatever they lost in 2020

This year the advertising businesses are steadied to retrieve everything they missed last year. This omits the effect of political advertising. It is believed the business will thrive by more than 10 percent in 2021.   


To Wrap Up

Multiple advertising units will make a stand soon. This is as they think through innovative marketing policies and practices that will steer the industry through the new normal. Furthermore, for brands, this symbolizes handling demand changes due to the economic influence on every sector of the industry

The sectors are encountering competition due to social distancing and consumer changes. They are assessing the operational possibilities and challenges.  Also, they are Identifying possible new commodities and services required to satisfy clients’ necessities and goals. 

Frequently Asked Questions

What are advertising trends during covid?

There is an introduction to modern configurations and platforms. Video marketing is also increasing. As the spending on conventional TV advertising is dropping, the digital video market payout is growing. 

According to recent reports, digital marketing spending is getting spread across extra channels this year. With a fast transforming landscape, more than 80 percent of the marketers have plans of paying an equal or additional amount In 2021. This is for a verified performance driver, retargeting, or paid show on publisher sites and the apps.  

Additionally, numerous marketers plan to modify their funds across the  Internet. Over forty percent intend to pay much more on retail media this year compared to 2020.  Last year the desire to connect every point of contact where clients buy, discover and evaluate was apparent. 

Moreover, it is notable that the enterprises are reacting. 

How has Covid Impacted brand advertising?

The Industries are responding to the coronavirus pandemic through digital advertising. As the clients exercise social distancing, there is powerful limelight on the brands’ reactions to the pandemic. This comprises the content they convey. 

The brands ought to emphasize the way their commodities can serve customers. Whether for their entertainment value, safety, or utility. Also, contemplating If a brand can invest in the rise in awareness by revealing the transitions consumers are creating for themselves.

For instance, advertisements may incorporate an unannounced, though apparent, dispersing out of players. This is to signify the current need for individuals distancing from each other. Buyers glance at brands’ corporate civic obligation. 

Social media portals are employing their wide range to share authentic, crucial messages. Like in the case of  Facebook allotting open advertising slot to the World Health Organization. Furthermore, Google inaugurated a highly perceived resource webpage. 

Confronted with the pervasive spreading of misinformation amid the shock. Facebook is scrutinizing the accuracy of information disseminated on the platform. All these practices 

back the international health community’s actions to keep the people acquainted and healthy.

Even with slight treads in the battle against the pandemic, customers will probably recall how digital platforms reacted. This will be to the civic when normality returns.



Influencer MarketingHub









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