Yet another factor that will cause media ad spending to contract are the production delays in scripted television. TV networks have, in turn, delayed the ad campaigns that surround their fall TV lineups. As traditional media conglomerates lose more ad revenues because of the pandemic, they will be less likely to spend ad dollars of their own. We expect significant declines in ad spending across traditional media in the US this year, including TV (-15.0%), print (-24.7%), and radio (-23.0%).
In the entertainment category, it’s the cancellation of live events that has caused advertisers to pull back. While there have been signs of recovery—including limited attendance at certain NFL games and the reopening of some movie theaters—there is still no timetable for the return of live events at full capacity.
One bright spot for entertainment, however, has been the increase in time spent with streaming services and gaming while consumers stay at home amid the pandemic. According to a May 2020 survey by GlobalWebIndex, 44% of US internet users said they were watching more shows and films on streaming services because of the pandemic, while more than one-quarter (26%) reported spending more time on computer and video games.