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The Coronavirus’ Effect on the Advertising & Branding Industry, Business and Industry Trends Analysis

During any significant market downturn such as a recession, the advertising and branding industry suffers from reduced advertising budgets.  This was certainly the case during the Coronavirus pandemic.  Particularly hard hit were ads relating to airlines, hotels, cruise lines, restaurants, movies, retail stores and automobiles.  These industries generate a good portion of the overall advertising industry’s revenues during better times.  On a global basis, ad spending reached $552.0 billion in 2020, down from $618.9 billion in 2019, according to the World Advertising and Research Center.
Conversely, ecommerce activity of all types soared during the pandemic, including a significant rise in online advertising spending.  According to a report by the Interactive Advertising Bureau conducted by PwC, digital ad spending in the U.S. rose 12.2% in 2020 over 2019, reaching $139.8 billion.

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