OTT Question Time #3: The Pandemic & The Advertising Paradox

At OTT Question Time #3 we examined a paradox. Whilst TV and OTT viewing is soaring, broadcaster advertising revenues have plummeted. Is this simply a result of the pandemic – and the associated hits to our national economies – or is there a more nuanced picture? Are there regional differences between the UK, Europe and the US? Which industry sectors are still advertising? And what are the prospects for an advertising bounce-back later this year and in 2021?

Joining us on the panel for OTTQT #3 were Simon Thomas, Global Director – Audiences Research and Media Investment Management at GroupM, Leon Siotis, President Europe at SpotX and Alan Wolk, co-founder and Lead Analyst at TVREV. 

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Reading List

During this session we referred to:

• Some research I’d done last year for a client project on broadcaster linear advertising and digital-only revenues. This is presented as an 8-slide PowerPoint deck OTTQT3 – The Pandemic & The Advertising Paradox.
• A forecast from the Advertising Association and Warc that the UK ad market may contract by up to £4.2bn this year. Specifically, TV advertising could fall by up to 19.8% compared to 2019. 
• ITV’s Q1 2020 trading statement in which the broadcaster said “there was a significant impact on the demand for advertising across most advertising categories, particularly from April which was down 42%”
• A chart from the the CEBR (Centre for Economic & Business Research) estimating the daily economic impact of the UK’s lockdown. The “Arts, Entertainment and Recreation” sector may lose up to 81% of its output in 2020