Coronavirus hits China ad spend
Ad spend growth is expected to slow in China this year as the coronavirus outbreak hits investment.
The ad market is now expected to see growth of 8.4% year on year to $113.7bn in 2020, down from a previous forecast of 10.5% growth to $121.13bn. That is the slowest growth rate since 2011.
‘Traditional’ ad spend is expected to take the biggest hit. Spend on newspapers is forecast to be down 16% and magazines by 14%.
Outdoor’s growth rate will weaken to 0.7%, from 2.5% previously. Digital is a bit more insulated, with the growth rate down from 15.2% to 13%.
This slowdown will also drag down the global ad market, which is now forecast to see growth of 7% compared to 7.4% previously. However, this could be brought down again if the outbreak impacts other countries’ ad spend, as it appears likely to do.
Consumers want stricter rules around online reviews
Almost three-quarters (72%) of consumers from the US, UK, France, Germany and Australia believe that stricter procedures should be put in place to tackle fake reviews posted on retail websites.
Some 43% of consumers say only verified customers should be permitted to post reviews. Requiring shoppers to try and test products before launch, as well as daily assessment of the reviews posted to a brands’ website, came in second and third place with 38% and 34% approval respectively.
The penalties for fake reviews can be harsh. Almost half (48%) of UK consumers would not buy a product online if they suspected foul play, and 43% said their trust in the brand would be lost. A significant 78% claimed that they would stop purchasing from a brand after they were deemed untrustworthy.
TV audiences favour traditional channels
More than half (56%) of UK households say they mainly watch programmes on the five traditional channels – BBC One, BBC Two, ITV, Channel 4 and 5 – up from 46% two years ago.
Furthermore, 74% of UK household say they tune into to broadcast TV often or nearly every day. Some 49% of household watch streaming services nearly every day, up from 46% two years ago.
Consumers slow to shift to more environmentally friendly options
Almost half (45.9%) of consumers who are aware of issues such as plastic pollution say they have made no real changes in how they buy or which companies they buy from to reduce their carbon footprint.
Cost is the biggest reason, cited by 43% of consumers. Some 30% cite not knowing where to start and 24.6% inconvenience.
Almost two-thirds (65%) admit low prices are very hard to resist.
Internet users shift time spent to the open web
More than half (54%) of internet users say they spend more than one hour per day on the open web, compared to 28% who spend an hour-plus a day on Facebook.
Furthermore, 38% say they use the open web more today than they did a year ago, while 27% of people expect to increase their open web usage next year. That compares to 12% who plan to increase their Facebook usage and 14% who plan to increase their usage of Instagram data.