April 13, 2020
Agencies and Clients say Covid-19 will Accelerate shift to Performance Media
The IAB surveyed nearly 30 Leaders of Agencies and Clients marketing teams between April 6 and April 12.
The findings suggest an immediate downturn with 48% saying they have already seen up to 30% budget cuts in April and 20% saying they have paused all Ads until further notice.
With Ramadan expected to start within weeks, there are still 38% saying they had yet to make decisions on Ramadan budgets while 51% are unsure about the direction of second half budgets, suggesting a high proportion of marketers are in ‘wait-and-see’ mode.
Winners in the 2nd half are expected to be Performance media with 59% of respondents suggesting they would increase Performance media budgets.
Overall, 77% of respondents report that Covid-19 will have a more significant impact on MENA marketing budgets than the 2008/9 Financial Crisis.