What Happens With Digital Ads In Q2 2020 — eMarketer

06 May 2020

Experts say the industry has a long way to go until it completely recovers from the pandemic

In Q2 2020, low ad prices on social media will stay at the same level, and a slow economic reopening will make marketers think twice how to manage budgets, reports eMarketer.

The Quarantine Influence

Although more people use social media in times of social distancing, advertisers have cut their budgets for social media ads. That’s why Facebook CPM prices dropped by 50%, and Google reports an “abrupt” decline in its search ad business.

On the other hand, low prices attract some other advertisers, says eMarketer principal analyst Debra Aho Williamson. Technology, telecom, and consumer packaged goods industries keep spending money on sharing their messages with the public. 

eMarketer research shows that in times of pandemic brands move on to brand advertising, leaving performance marketing behind. With their social media, brands try to communicate empathy. 

Q1 2020 Predictions

CRM prices will not increase in Q2. Possibly, they will be the same even later, eMarketer says. May and June numbers might be better than April’s; however, they won’t reach a regular, “pre-pandemic” level. 

eMarketer senior analyst, Nicole Perrin, says although Google’s revenue hasn’t grown that fast during the pandemic year-to-year, it was in line with the upper end of experts’ expectations for the digital ad market. In Q1 2020, Google’s revenue has increased by 9%. That’s why “cautious optimism may be in order for Q2”, says Nicole Perrin.

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