PETALING JAYA: Mediums that cannot be accessed from home are already feeling the impact of the coronavirus (Covid-19), according to Magna Malaysia chief investment officer Audrey Chong (pic).
She said the impact in Malaysia was no different from current global trends.
“Digital is clearly the least impacted casualty as we see clients racing to enhance their e-commerce capabilities and traffic across these platforms to mitigate the overall impact to business.
“With the Movement Control Order (MCO) in Malaysia, we see a surge in business (for companies) that offer services that serve people’s immediate needs. Food and beverages with delivery and pick-up options and (with) financial services pushing online banking, personal and business loans have been amongst the quickest to respond, ” she told StarBiz.
Magna Malaysia is the centralised IPG Mediabrands resource for intelligence, investment and innovation strategies.
IPG Mediabrands is a marketing communications specialist network operating globally in more than 130 countries, managing over US$39bil in marketing investment on behalf of clients.
She said that digital platforms are the preferred choice for marketers to focus upon, given the reach of the audience and the relatively quick turnaround in terms of creative messaging.
TV broadcasters, Chong added, are also offering special packages to clients to get their messages to the audience.
“TV viewing has increased significantly with some key news programmes increasing viewers by a whopping 47% compared to the period prior to MCO.
“With a lot of fake news circulating in the social media space, it is not surprising that audiences still refer to these credible sources when it comes to news and updates, “ she said.
Meanwhile, Magna in its latest global report on the impact of Covid-19 on the global economy and the global advertising market, among others, noted that although digital media ad formats would be the least impacted, global digital advertising would likely to slow down to single-digit growth this year compared to a growth of 20% per year in recent years.
Many industry sectors, it said may decrease marketing and advertising spending this year as a result of slower sales and profits.
Television, Magna said, may remain relatively resilient due to pre-existing spending commitments, viewing increases and the fact that core client verticals (e.g. consumer packaged goods) would be relatively unscathed.
TV viewing, especially news grows everywhere during the isolation weeks, the report said but added the shortage of fresh programming and cancellation of sports events may ultimately limit overall growth.
Radio ad sales may suffer more, as automotive commuting stops for weeks, and out-of-home (OOH) ad sales would be severely hurt by the quarantines but may recover faster too than others, the report noted.
“The Covid-19 epidemic is now slowing down in China, which shows that extreme isolation works and curbs the contagion within four to six weeks.
“That means Europe and North America are now facing at least five weeks of quarantines and business closures that will hit the economy, before business gradually comes back to normal, ” it added.
Magna also highlighted that the quarantine and social distancing policies are generating deep changes in attitudes, social norms (remote work, remote education), consumption (acceleration of e-commerce and online services), and media consumption (surge in TV viewing, OTT usage, and digital media).
These shifts are likely to (at least partially) outlast the outbreak and change our society forever, it added.
On the economic front, it revealed that the current consensus among macro-economists is that a global recession in the first half would be followed by a recovery in the second half.
If so, Magna reckons that the global economy may stagnate in 2020 instead of growing by 3% as previously expected.
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