US spending on search advertising will decline by between 8.7% and 14.8% in H1 2020, which is about $6 billion to $8 billion less than we expected, according to our latest estimates.<\/p>\n
![\"\"](\"https:\/\/www.ceo-na.com\/wp-content\/uploads\/2020\/04\/ad-300x298.png\")
<\/p>\n
Our previous forecast of US digital ad spending, completed on March 6, 2020, called for a 14.4% increase in search ad spending for all of 2020.<\/p>\n
- \n
- Search ad spending was flat in Q1, thanks to continuing solid performance at the beginning of 2020.\u00a0We think Q1 ad investments came in somewhere between a year-over-year spending increase of 2.8% and a decline of 0.2%. Our model assumes that major decreases in spending began in March and will continue through Q2.<\/li>\n
- Search ad spending in Q2 will experience a steeper decline of between 20.2% and 29.4%\u00a0on a year-over-year basis.<\/li>\n
- We believe travel advertisers will decrease search spending most sharply, and media and entertainment industry search budgets will be severely trimmed as well.\u00a0Advertisers in other industries will also pull back spending on average\u2014but keyword bidding means there likely won\u2019t be as large a drop in pricing for search ads as there will be for display.<\/li>\n<\/ul>\n
\u00a0Why search ad spending will fall<\/h1>\n
As a performance marketing channel that is relied on to drive return on investment, search is often viewed as relatively safe in a recession,\u00a0when marketers are forced to justify budgets. But there are at least two major downward pressures on search ad spending during the current crisis:<\/p>\n
- \n
- Search is a lower-funnel ad channel that\u2019s typically geared toward driving conversions\u2014including in-store\u2014and many of those conversions can\u2019t happen right now because of quarantines, inventory shortfalls and related problems.<\/li>\n
- Search budgets aren\u2019t committed in advance and can be paused or pulled at any time.<\/li>\n<\/ul>\n
Ecommerce activity typically drives a significant share of search ad spending. But for now, tight supply chains and logistical restrictions\u2014like those announced by Amazon to limit warehouse operations\u2014mean it\u2019s hard for consumers to buy a lot of items online. Amazon has reportedly pulled back significantly from spending on Google search ads, likely because it doesn\u2019t want to drive additional demand when it\u2019s already running close to capacity.<\/p>\n
Our current guidance assumes that advertisers in different industries will make different decisions about budget allocations, and not all sectors of the search ad market will experience the same degree of decline during H1.<\/p>\n","protected":false},"excerpt":{"rendered":"
This is how the Coronavirus changed eMarketers’ US search ad […]<\/p>\n","protected":false},"author":8,"featured_media":26017,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45,53],"tags":[3597,99,1385,1780,3596],"class_list":["post-26015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry","category-opinion","tag-ad-spendind","tag-ceo","tag-ceo-northam","tag-emarketer","tag-emarketer-editors"],"_links":{"self":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/26015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/comments?post=26015"}],"version-history":[{"count":2,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/26015\/revisions"}],"predecessor-version":[{"id":26020,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/26015\/revisions\/26020"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media\/26017"}],"wp:attachment":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media?parent=26015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/categories?post=26015"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/tags?post=26015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}