THE rAVE Agency and Zoom partnered for the inaugural LAVNCH Week and Mark Boidman of PJ Solomon provided the Keynote address.
Here are highlights from Boidman’s talk:
Covid-Specific Media Impact
- There will be a slowdown in advertising spend as firms cut back on marketing budgets
- Though Media relating to digital signage typically weathers recessions well, it will be more adversely impacted by social distancing and other measures decreasing time spent out of home.
- Local advertising has been particularly hit due to the closure of most small businesses and will take longer to ramp back up versus national ad spend
- Expects OOH-specific negative effects will last until the virus is under control, and remains positive on OOH media in the long-term
Forecasts in AV, Digital Signage and Advertising
Looking at market performance of professional AV as compared to the general index, we’re seeing more of an impact on DS and AV than we are compared to the S&P 500.
- OOH networks will likely be less impacted as compared to other forms of media. OOH media still offers an advantage. Reaching a mass audience in the physical world will continue to be the benefit of out-of-home (as opposed to other media channels that are fragmented, like TV and internet). Uniquely, digital signage can measure who was there (who saw the media) and inform how we adjust. We’ve already seen increased traffic in places like healthcare facilities; this will continue to increase in grocery stores, drugs stores and more.
- In recessions, ad spend decreases but will slowly ramp back up. We saw in the 2001-2002 and 2008-2009 recessions a drop in OOH media spend, Boidman shared. But spend came back up after each with consistent year-over-year growth. The difference with COVID is the uncertainty of how long this will last. Boidman thinks ad spend will slowly ramp back up, though we are seeing it harder hit now.
At the same time, as things slowly ramp back up in 2021 and beyond, the hope is the sector recovers, just like every other. But again, we are going to have to adapt. This is the opportunity for professional AV and digital signage. It’s the opportunity, as the digital and physical blur, to bring more people into the former (the digital vs. the physical). There’s a lot of growth that can come from that.
“Short-term, it’s defense. Long-term, it’s offense,” Boidman concluded.
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