Carnavirus continues to wreak havoc on the ad market in May, new data shows.
A new report from StandardMediaTracker, which tracks media spending, says U.S. advertising revenue fell 31 percent last month before ESPN’s owner pulled out big media companies like Disney.
According to the data, media giants Disney and WarnerMedia logged a number of steep ads last month due to delays in NBA playoffs, which usually occur in May and are broadcast by Disney’s ABC and ESPN and WarnerMedia’s TNT. In the absence of playoffs, WarnerMedia’s ad revenue fell 45.5 percent a month, and Disney saw its ad sales fall 39.6 percent.
The coronavirus-tempted travel industry has slashed its advertising spending by as much as 87 percent, the highest in any category, the report said. Automotive advertising spending is down 60 percent, followed by clothing and accessories advertising spending, which is down 5 percent.
Restaurants have fallen behind by 52 percent and retailers have slashed their budgets by 45 percent. Tech advertising spending was 25 percent off and financial-services advertisers were 13 percent off advertising. The only sector to spend more in May than the girl a year ago was the pharmaceutical industry, which increased its advertising spending by 4 percent.
Google, Facebook and Microsoft saw a small drop in advertising revenue because they relied less on sports. Digital media firms had a 50 percent share of all advertising dollars, StandardMedia reported, up 47 percent in April and 43 percent in the first quarter.
Most companies have asked to cut their advertising spending by 10 percent or more, the report said, although the number of girls was a better number than the 35 percent drop in April’s advertising spending – providing some signs of hope, said James Fenesi, chief executive of the Standard Media Index.
“Market conditions are expected to improve as Live Sports slowly returns to June,” Fenesi said. “Although annual growth is not expected year after year, small reductions will be the new rule.”