Skip to main content
  • login
  • contact
  • language
    • English
    • Français
    • Español
    • Português
    • Deutsch
    • Italia
    • 简体中文
    • 日本語
  • search
X
GEP Logo GEP Logo
  • Company
    • About Us
    • Leadership
    • Customers
    • Partners
    • AI-First at GEP
    • Sustainability at GEP
    • News
    • Events
    • Culture
    • Mission & Vision
    • Awards & Recognition
  • Solutions
    • Software
      • GEP SMART  
        • AI-First Source-to-Pay
        • Procurement Software
        • Product Accessibility
        • Direct Procurement Software
        • Indirect Procurement Software
        • Intelligent Category Management
        • Digital Procurement Transformation
        • Master Data Management
        • AP Automation
        • Spend Management
        • GEP COSTDRIVERS
      • Midsize & High Growth Enterprises  
      • GEP NEXXE  
        • AI-First Supply Chain Management
        • Supply Chain Visibility and Execution
        • Supply Chain Planning
        • Supply Chain Collaboration
        • Supply Chain Control Tower
        • Should-Cost Modeling
        • Inventory and Warehouse Management
        • Direct Material Sourcing
        • GEP Multienterprise Collaboration Network
      • GEP QUANTUM  
      • GEP GREEN  
      Strategy
      • Procurement Consulting  
        • Procurement Transformation
        • Digital Procurement Transformation
        • Opportunity Assessment
        • M & A Services
        • Strategic Cost Management
        • Supply Risk Management
      • Supply Chain Consulting  
        • Environmental, Social and Governance
        • Socially Responsible Sourcing
        • Supply Chain Strategy
        • Supply Chain Diagnostics
        • Inventory Optimization
        • Network Optimization
        • GEP Total Inventory Management Solution
      Managed Services
      • Procurement Outsourcing  
        • Source-to-Contract
          • Spend Analysis
          • Strategic Sourcing
          • Category Management
          • Supply Market Intelligence
          • Tail-Spend Management
          • Procurement Support Services
        • Procure-to-Pay
          • Cost Recovery & Invoice Auditing
          • Accounts Payable
      • Supply Chain Outsourcing  
        • Planning & Forecasting
        • Inventory Management
        • Logistics Management
        • Supply Chain Data Management
        • Supply Chain Risk Management
  • Industries
    • Automotive
    • Chemicals
    • Consumer Packaged Goods
    • Energy & Utilities
    • Financial Services
    • Government & Nonprofit
    • Industrial Manufacturing
    • Life Sciences
    • Oil & Gas
    • Private Equity
    • Retail
    • Telecommunications, Media & Technology
    • High-Tech
    • Media & Entertainment
    • Software, Social & Platforms
    • Telecom
    • Travel & Hospitality
  • Knowledge Bank
    • Explore by Topic
      • Artificial Intelligence  
      • Digital Transformation  
      • Software & Technology  
      • Strategy & Planning  
      • Operations  
      • Procurement  
      • Sustainability  
      • Inflation Strategies  
      Explore by Type
      • White Papers  
      • Research Reports  
      • Bulletin  
      • Case Studies  
      • Webcasts  
      • Blogs  
      • Podcasts  
      • Insights From the Top  
      • Glossary  
      Global Supply Chain Volatility Index

      Latest Insight

      Navigating shifts Read More  

      Rethinking Supply Chains for Greater Efficiency, Resiliency, and Sustainability Read More  

  • Careers
    • Join Us
    • GEP Per Se
    • Campus Connect
  • Partners
   
  • GEP Software ›
    • GEP Software
    • ‹ Back
      • GEP SMART ›
        • GEP SMART
        • ‹ Back
          • AI-First Source-to-Pay
          • Procurement Software
          • Direct Procurement Software ›
            • Direct Procurement Software
            • ‹ Back
              • Bill of Materials Management
              • Data Analytics & Reporting
              • Inventory Management
              • Master Data Management
              • Quality Management
              • Supplier Collaboration Portal
              • Supply Chain Operations
          • Indirect Procurement Software ›
            • Indirect Procurement Software
            • ‹ Back
              • Source-to-Contract
              • Spend Analysis
              • Savings Project Management
              • Category Management
              • Contract Management
              • Savings Tracking
              • Sourcing
              • Supplier Management
              • Procure-to-Pay
              • Guided Buying
              • Procurement Portal
              • Catalog Management
              • Order Processing
              • Invoice Management
          • Intelligent Category Management
          • Digital Procurement Transformation
          • Payments
          • Spend Management
          • Master Data Management
          • AP Automation
          • Product Accessibility
          • GEP COSTDRIVERS
          • Midsize & High Growth Enterprises
      • GEP NEXXE ›
        • GEP NEXXE
        • ‹ Back
          • AI-First Supply Chain Management
          • Supply Chain Visibility and Execution ›
            • Supply Chain Visibility and Execution
            • ‹ Back
              • Inventory and Warehouse Management
              • Logistics Visibility
              • Control Tower
          • Supply Chain Planning ›
            • Supply Chain Planning
            • ‹ Back
              • Supply Chain Control Tower
              • Should-Cost Modeling
              • Demand Planning
              • Supply Chain Bill of Materials
              • Supply Chain Direct Sourcing
              • Supply Planning
          • Supply Chain Collaboration ›
            • Supply Chain Collaboration
            • ‹ Back
              • Forecast Collaboration
              • Purchase Order Collaboration
              • Quality Collaboration
              • Capacity Collaboration
              • Quality Management Software
          • Supply Chain Control Tower
          • Should-Cost Modeling
          • Inventory and Warehouse Management
          • GEP Multienterprise Collaboration Network
      • GEP QUANTUM ›
        • GEP QUANTUM
        • ‹ Back
          • AI, ML & Automated Technology
          • AI-Powered Data Analytics
          • Cloud Integration
          • Low-Code Application Development
      • GEP GREEN
      • Innovation ›
        • Innovation
        • ‹ Back
          • Emerging Technologies
          • Native to Cloud
          • Native to Mobile
          • One Unified Platform
          • Security
          • User-Centric Design
  • GEP Strategy ›
    • GEP Strategy
    • ‹ Back
      • Procurement Consulting ›
        • Procurement Consulting
        • ‹ Back
          • Procurement Transformation ›
            • Procurement Transformation
            • ‹ Back
              • Procurement Strategy
              • Org. Design & Implementation
              • Capability Building
              • Change Management
              • Governance & Performance
              • Processes & Policies
              • S2P Operations
              • Sourcing & Category Management
              • Technology
          • Digital Procurement Transformation
          • Opportunity Assessment
          • M&A Services ›
            • M&A Services
            • ‹ Back
              • M&A Clean Room
          • Strategic Cost Management ›
            • Strategic Cost Management
            • ‹ Back
              • Zero-Based Budgeting
          • Supply Chain Risk Management
      • Supply Chain Consulting ›
        • Supply Chain Consulting
        • ‹ Back
          • SUSTAINABILITY AND RESILIENCE
          • Environmental, Social and Governance
          • Socially Responsible Sourcing
          • Scope 3
          • PLAN
          • Digital Planning, S&OP, S&OE
          • Collaborative Planning
          • PROCURE
          • Source To Contract
          • Procure To Pay
          • MAKE
          • Inventory Strategy & Management
          • Operations & Manufacturing Excellence
          • GEP Total Inventory Management Solution
          • DELIVER
          • Network Strategy & Optimization
          • Warehousing & Transportation Management
  • GEP Managed Services ›
    • GEP Managed Services
    • ‹ Back
      • Procurement Outsourcing ›
        • Procurement Outsourcing
        • ‹ Back
          • Source-to-Contract
          • Spend Analysis
          • Strategic Sourcing ›
            • Strategic Sourcing
            • ‹ Back
              • MRO
              • CAPEX
              • Logistics
              • Packaging
              • IT & Telecom
              • Energy
              • Direct Materials
          • Category Management ›
            • Category Management
            • ‹ Back
              • Contract Management
              • Supplier Performance Management
              • Savings & Compliance Tracking
          • Supply Market Intelligence
          • Tail-Spend Management
          • Procurement Support Services ›
            • Procurement Support Services
            • ‹ Back
              • eSourcing
              • Supplier Performance Management
              • Savings & Compliance Tracking
              • Sourcing Support
          • Procure-to-Pay
          • Cost Recovery & Invoice Auditing
          • Accounts Payable
      • Supply Chain Outsourcing ›
        • Supply Chain Outsourcing
        • ‹ Back
          • Planning & Forecasting
          • Inventory Management
          • Logistics Management
          • Supply Chain Data Management
          • Supply Risk Management
  • Industries ›
    • Industries
    • ‹ Back
      • Automotive
      • Chemicals
      • Consumer Packaged Goods
      • Energy & Utilities
      • Financial Services
      • Government & Nonprofit
      • Industrial Manufacturing
      • Life Sciences
      • Oil & Gas
      • Private Equity
      • Retail
      • Telecommunications, Media & Technology
      • High-Tech
      • Media & Entertainment
      • Software, Social & Platforms
      • Telecom
      • Travel & Hospitality
  • Knowledge Bank ›
    • Knowledge Bank
    • ‹ Back
      • Explore by Topic ›
        • Explore by Topic
        • ‹ Back
          • Artificial Intelligence
          • Digital Transformation
          • Operations
          • Procurement
          • Software & Technology
          • Strategy & Planning
          • Sustainability
          • Inflation Strategies
      • Explore by Type ›
        • Explore by Type
        • ‹ Back
          • Insights From the Top
          • White Papers
          • Research Reports
          • Bulletins
          • Case Studies
          • Webcasts
          • Blogs
          • Podcasts
          • Glossary
      • Global Supply Chain Volatility Index
  • Company ›
    • Company
    • ‹ Back
      • About Us
      • Leadership
      • Customers
      • Partners
      • AI-First at GEP
      • Sustainability at GEP
      • News
      • Events
      • Culture ›
        • Culture
        • ‹ Back
          • GEP Core Values
          • Women@GEP
          • Diversity
          • GEP Cares
      • Mission & Vision
      • Awards & Recognition
      • Contact Us
  • Global Presence ›
    • Global Presence
    • ‹ Back
      • Americas ›
        • Americas
        • ‹ Back
          • English
          • Español
          • Portugués
      • Europe ›
        • Europe
        • ‹ Back
          • English
          • Deutsch
      • Asia-Pacific ›
        • Asia-Pacific
        • ‹ Back
          • English
          • 中文
      • Middle East ›
        • Middle East
        • ‹ Back
          • English
          • العربية
  • Contact Us
  • Careers ›
    • Careers
    • ‹ Back
      • GEP Per Se
      • Campus Connect
  • Language ›
    • Language
    • ‹ Back
      • English
      • Français
      • Español
      • Deutsch
      • Italia
      • Português
      • 简体中文
      • 日本語
  • BLOGS
  • Strategy
  • Technology
  • MIND
Contact Us
  •  
  •  
  •  
  •  
  •  
  •  

Breadcrumb

  1. HOME
  2. BLOG
  3. MIND
  4. THE IMPACT OF COVID 19 ON AD PRODUCTION
Blog Image

The Impact of COVID-19 on Ad Production

September 11, 2020 | Marketing

2020 will be synonymous with COVID-19, at least for the generations that witnessed the pandemic. Every sphere of human activity, from business to sports to entertainment, has been affected and nothing will perhaps be the same again. After public health, the economy is the second most important factor that has been affected adversely. Almost every nation is seeing a reversal in GDP growth this year, with the advanced economies shrinking by 6.1%, resulting in a cascading effect on the global economy. The advertising spend of any nation is a barometer that depicts its financial health and prospects. 

Impact On Media Consumption

There is a renewed interest in linear television, although the clear winner is connected television with more reach, interactivity and earned time over standard expenses. Online media and streaming sites have seen a tremendous rise in viewership as work-from-home has led to a lack of outdoor pursuits, enabling people across income levels to spend more time on viewing OTT content. Even radio has seen a spike in listening time (by 20% to 30%) despite confinements and reductions in car journeys. In the press, digital subscriptions have increased, but there has been a fall in print newspapers. The other two big losers are out-of-home media and cinemas, as a direct impact of the pandemic.

Advertising agencies earlier enjoyed a consolidated market environment. Now, with a significant rise in the number of production houses, competition has intensified across the board, primarily in terms of the cost of services. Many smaller production houses are now offering competitive rates to acquire more clients, which is impacting the market share of large production houses.

The Increasing Trend of Inhouse Production

Spikes in production cost, compounded by a creative talent crunch and existing inefficiencies in bidding process, has led to many leading advertisers such as P&G, PepsiCo, Unilever and Johnson & Johnson, opting to take production inhouse. The move is in line with a wider shift in strategy towards simplicity and cost savings — utilizing their inhouse creative team for ad  production — which is turning into a threat for independent production houses.

While the de-coupling of commercial production functions and creative advertising services has been a major trend in the last decade, there have been instances when advertisers directly reached out to production houses with project-based work — reducing costs on creative services. This motivated several production companies to provide expanded services. Now, advertisers are hiring creative personnel from agencies for their in-house teams, facilitating creative planning in conjunction with production. Thus, we may see the last decade's trend undone as both functions are recoupled in leading creative agencies.

The Future: Shrinking Ad Investments and Shifting Towards Digital 

Advertisers have in general become cautious spenders. While advertisement spend has been increasing, spend per project has declined, causing a gradual shrinkage in the margins of advertising agencies. PepsiCo, for example, reduced non-essential advertising and marketing spend during Q2 in 2020 to optimize revenue management capabilities amid uncertain market conditions. However, the total advertising investment remained higher than last year with a focus on key brands and bigger activities.

Global lockdowns forced consumers to spend more time on digital platforms, compelling advertisers to shift their traditional advertising spend to digital channels. Pfizer leveraged animation to create a campaign that highlighted best practices and adapted it globally using VidMob. Mondelez doubled up on advertising on e-commerce and digital platforms to efficiently push its offerings near digital purchase points, as consumers are buying more online. In addition, marketers are creating online communities to help consumers allay stress and fear, while fostering an authentic bond with the brands. COVID-19 has acted as a catalyst for advertisement production to evolve as a fine balancing act between advertisers, agencies, production houses, vendors and procurement.

Sources

  • https://www.imf.org/external/datamapper/profile/ADVEC
  • https://www.worldbank.org/en/news/feature/2020/06/08/the-global-economic-outlook-during-the-covid-19-pandemic-a-changed-world
  • https://www.ana.net/miccontent/show/id/rr-2020-ana-innovid-connected-tv
  • https://www.adexchanger.com/advertiser/brands-get-creative-with-production-during-covid-19/
  • https://www.adexchanger.com/online-advertising/how-to-avoid-a-coronavirus-marketing-fail/
  • https://www.adexchanger.com/advertiser/brands-get-creative-with-production-during-covid-19/

Turn ideas into action. Talk to GEP.

GEP helps enterprise procurement and supply chain teams at hundreds of Fortune 500 and Global 2000 companies rapidly achieve more efficient, more effective operations, with greater reach, improved performance, and increased impact. To learn more about how we can help you, contact us today.

David Doran
Vice President, Consulting

David has over 20 years of experience in leading several large-scale consulting and sourcing engagements for transport and logistics at Fortune 500 companies.
A recognized leader in supply chain management and logistics, David plays a critical role in the design, sourcing and implementation of supply chain improvements to GEP’s global clients.

LET'S TALK

 

Tags: media , risk management

Add Comment +

FEATURED POST

...
Inventory Management Software

Achieving Supply Chain Resilience With Total Inventory Management Solution

...
Supply Chain Strategy

Sodium-ion vs. Lithium-ion Battery: Which is a Better Alternative?

...
Supply Chain Strategy

3 Best Practices to Tackle Inflation in Supply Chain Network Design

    BLOG CATEGORIES

  • Marketing
  • Pharma and Life Sciences
  • Professional Services
  • IT & Telecom
  • Logistics
  • Chemicals
  • Energy & Utilities
  • Market Intelligence
  • Oil and Gas
  • Supply Chain
  • MRO
  • Facilities Management
  • Human Resource
  • Agro
  • Procurement Process and Excellence
  • Automotives
  • CAPEX
  • Packaging
  • Direct Materials
  • Healthcare
  • Metals & Minerals
  • Corporate Travel
  • Technology
  • Awards and Events
  • Category Management

TAGS

sustainability
Procurement Software
supply chain strategy
Inflation
Russia-Ukraine War

By checking the box below, you consent to GEP using your personal information to send you thought leadership content – such as white papers, research reports, case studies – and other communications. GEP representatives may contact you to provide additional information or answer questions.

If at any point in time you decide to withdraw your consent, you may unsubscribe by emailing your request to us at privacy@gep.com.

Please refer to the GEP Privacy Statement to understand how we manage and protect your personal information.

Terms of Use | Privacy Statement

Contact Us

Ask Us

Send us your question(s)

RFP

Request for a business proposal

Feedback

Share your thoughts, comments and suggestions

Demo

Schedule a live demo of our software

Discover
STRATEGY
Strategy
  •   Procurement Consulting
  •   Digital Procurement Transformation
  •   Strategic Cost Management
  •   Opportunity Assessment
  •   Supply Chain Risk Management
  •   Supply Chain Consulting
  •   Supply Chain Strategy
  •   Supply Chain Diagnostics
  •   Inventory Optimization
  •   Procurement Transformation
  •   Sustainability and ESG Consulting
SOFTWARE
Software
  •   Procurement Software
  •   Supply Chain Software
  •   Source-to-Contract
  •   Procure-to-Pay
  •   Supply Chain Planning
  •   Supply Chain Collaboration
  •   Supply Chain Visibility & Execution
  •   Supply Chain Control Tower
  •   Should-Cost Modeling
  •   Inventory & Warehouse Management Software
  •   Source-To-Pay Software
  •   Midsize & High Growth Enterprises
MANAGED SERVICES
Managed Services
  •   Procurement Outsourcing
  •   Strategic Sourcing
  •   Tail-Spend Management
  •   Category Management
  •   Procurement Support Services
  •   Supply Chain Outsourcing
  •   Supply Chain Planning & Forecasting
  •   Inventory Management
  •   Logistics Management
COMPANY
Company
  •   About Us
  •   Leadership
  •   Customers
  •   Sustainability at GEP
  •   Careers
  •   News
  •   Awards
  •   Partners
  •   Contact Us

Fresh Insights, Now on Your Phone

  • GoGEP app on Apple App Store
  • GoGEP app on Google Play Store
Stay Connected
  •  
  •  
  •  

Latest Tweets

© Copyright GEP 2023. All rights reserved. Terms of Use | Privacy Statement | Cookie Policy |   | Quality Policy | GEP Logo