COVID-19 Impact on Strategy and Digital Investment Follow-Up Survey

The IAB New Zealand: COVID-19 Impact on Strategy and Digital Investment Follow-Up Survey (June 2020) follow-up has been completed. Key variances between the two surveys (April 2020) can be summarised as follows:

In April 63% of respondents described their business in its current state as ‘Pivoting: Changing the business or media strategy based on the market and consumer insights’, and 26% described their business in its current state as ‘Surviving: Focus on cash and jobs. Running no media’.

In June however, a reduced number of respondents (45%) described their business as Pivoting, however, an increased number of respondents (30%) are ‘Investing: Eager to find new customers and audiences and wanting to maximise this situation for future growth’, compared to 11% in April.

The frequency of reviewing Business Strategy has changed between surveys: In April 46% of respondents were reviewing weekly and 27% daily,  whereas in June the result has shifted to 35% reviewing weekly and 35% as major announcements are made.

The frequency of reviewing Media Strategy has also changed between surveys: In April 40% of respondents were reviewing weekly and 27% as major announcements were made, whereas in June the result has shifted largely to reviewing as major announcements are made (60%).

For those respondents thinking about changing their Business Strategy post COVID-19, in April, a combined 77% were increasing their reliance on data-led strategies and anticipating leaning further into e-commerce. Whereas in June, this increased to a combined total of 83%, emphasising an increased reliance on data and e-commerce.

In the latest survey however, it appears that the impact on total annual media budgets to 31 December 2020 has been relieved, with 60% stating that it has been reduced, compared to 77% in April. For  any decreases there appears to be more uncertainty (59%) versus (47%) in April. In June we surveyed a new question regarding confidence in the stability of your total annual digital budget to 31 December 2020. There were equal measures of confidence (40%) and uncertainty (40%).  It is encouraging that in June there was an increase in the percentage of respondents increasing their spend in the short term (25%) versus (9%) in April.

If you’re an IAB New Zealand Member, you can download the full report here.