The WIFO advertising climate index shows a further slump in the first quarter of 2021 compared to the previous year’s values.
The advertising industry is suffering from the Corona crisis, “said Michael Mrazek, chairman of the Advertising and Market Communication Association in the Austrian Chamber of Commerce, commenting on the current survey results.
The first gentle opening steps in compliance with strict safety rules are all the more important.
60 percent mekden deterioration
The advertising economy showed a clear downward trend. Almost 60 percent of companies report a deterioration in their current business situation. After an upward trend since April 2020, after the first lockdown, the balance of positive and negative assessments of the current business situation has fallen significantly again, reports Mrazek: “
The demand curve is also clearly pointing downwards for this period. Almost half of the companies report that the insufficient demand hinders their business activity, 57 percent of the respondents report insufficient order backlogs.
The effects on the industry since the November lockdown 2020 cannot be overlooked. “
43 percent of companies report a deterioration in demand in the past 3 months. Only 25 percent report an improvement in the demand situation. On balance, the demand estimates fall to minus 17 points.
High savings rate, little investment
The corona crisis is also noticeably affecting market services – and thus the advertising industry. “In addition, there is the insecurity in the population, which is contributing to an increase in the savings rate, as well as an insecurity among companies, which has a negative effect on investment behavior.” Negative effects on the labor market are also noticeable in the advertising industry.
The high level of uncertainty in the pandemic means that entrepreneurs are cautious about hiring new employees. In the last few months, the number of those who were forced to downsize outnumbered the number of companies hiring new staff.