FMCG & COVID-19

WARC Data: Global Ad Trends (March, 2020)

Want a way to stay up to speed on what is happening in the dynamic media marketplace? WARC Data brings you monthly reports with media analysis, media intelligence and the latest facts and figures on the global ad market. 

In this edition, we share the effect of COVID-19 on the FMCG industry. This sample report includes insights such as:

  • An economic recession is now highly probable; this is likely to lead to an advertising recession.
  • During the last recession, ad money moved into paid search, but online pure players such as Facebook and Google are now vulnerable.
  • The food and drink sectors reduced spend at a far softer rate than the wider market.
  • Major FMCG advertisers lowered advertising and marketing investment in the last recession in 2008/09, but it held as a share of sales revenue
  • FMCG advertising money is moving online, but brand building is still important while selling via third-party retailers and not directly to customers.
  • FMCG sales on Tmall and Amazon have boomed. Online players may become more significant to FMCG shoppers, increasing the importance of DTC or subscription offers.
  • Consumers are adjusting to ‘living a new normal’, and new buying habits may prompt permanent shifts in behaviour.

 

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