Ad spend is closely tied to economic activity (i.e., GDP). At this point it is a given that the Asia-Pacific, Latin American and Middle East & African economies are all pointed towards a recession and one of the first things to be cut in an economic downturns is advertising budgets. In Strategy Analytics most recent ROW Advertising Forecast (i.e., baseline forecast) we projected total ad spend to grow, this is no longer the case given the COVID-19 pandemic. While significant uncertainty exists as to how much damage COVID-19 will ultimately inflict on global economies we have run several scenarios based upon different economic conditions.
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