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| ‘A Seismic Shock’: Jittery Companies Pull Back on Ads During Pandemic | ‘A Seismic Shock’: Jittery Companies Pull Back on Ads During Pandemic |
| (about 1 hour later) | |
| The billboard was blank. | The billboard was blank. |
| In all the times Takeshi Sato had walked through Shibuya Crossing, Tokyo’s answer to Times Square, he had been more or less surrounded by ads. But on March 23, he noticed something strange looming over the pedestrians: an empty sign. | In all the times Takeshi Sato had walked through Shibuya Crossing, Tokyo’s answer to Times Square, he had been more or less surrounded by ads. But on March 23, he noticed something strange looming over the pedestrians: an empty sign. |
| “I thought, ‘Oh, this is not normal,’ and I remember feeling depressed,” Mr. Sato said. “But it’s understandable that advertisers want to stop running ads on billboards, because fewer people are going out.” | “I thought, ‘Oh, this is not normal,’ and I remember feeling depressed,” Mr. Sato said. “But it’s understandable that advertisers want to stop running ads on billboards, because fewer people are going out.” |
| Even in 2011, after a devastating earthquake and tsunami, the billboards in that part of town were full, he said. The blank spot in Shibuya, facing one of the world’s busiest intersections, suggested the far-reaching effects of the coronavirus. | Even in 2011, after a devastating earthquake and tsunami, the billboards in that part of town were full, he said. The blank spot in Shibuya, facing one of the world’s busiest intersections, suggested the far-reaching effects of the coronavirus. |
| Companies that spent big to get the word out about their products before the pandemic have hit the brakes. Facebook has described its advertising business as “weakening.” Amazon has reduced its Google Shopping ads. Coca-Cola, Kohl’s and Zillow Group have stopped or limited their marketing. Marriott’s advertising, in the words of the company’s chief executive, has “gone dark.” | Companies that spent big to get the word out about their products before the pandemic have hit the brakes. Facebook has described its advertising business as “weakening.” Amazon has reduced its Google Shopping ads. Coca-Cola, Kohl’s and Zillow Group have stopped or limited their marketing. Marriott’s advertising, in the words of the company’s chief executive, has “gone dark.” |
| “A lot of advertisers are just pulling back — the tide’s going out,” said Garrett Johnson, an assistant marketing professor at Boston University’s Questrom School of Business. “If the economy is not doing well, if firms are bleeding cash as a result of Covid, we’re not going to be seeing too much advertising.” | “A lot of advertisers are just pulling back — the tide’s going out,” said Garrett Johnson, an assistant marketing professor at Boston University’s Questrom School of Business. “If the economy is not doing well, if firms are bleeding cash as a result of Covid, we’re not going to be seeing too much advertising.” |
| Ads became an unavoidable part of modern life for a simple reason: They work. Each dollar that companies spent on advertising in the United States last year led to $9 in sales, the research firm IHS Markit estimated. And while the barrage of marketing messages can seem like background noise, their absence would be conspicuous. | Ads became an unavoidable part of modern life for a simple reason: They work. Each dollar that companies spent on advertising in the United States last year led to $9 in sales, the research firm IHS Markit estimated. And while the barrage of marketing messages can seem like background noise, their absence would be conspicuous. |
| The ad industry employs about 500,000 people in the United States. Their work blankets movie screens, smartphones, buildings, stadiums and inbox-clogging promotional emails. Companies that regularly buy ads are the lifeblood of TV networks, podcast companies, news outlets, lifestyle publications and pretty much all of the internet — and when they spend less on marketing, there is a ripple effect. | The ad industry employs about 500,000 people in the United States. Their work blankets movie screens, smartphones, buildings, stadiums and inbox-clogging promotional emails. Companies that regularly buy ads are the lifeblood of TV networks, podcast companies, news outlets, lifestyle publications and pretty much all of the internet — and when they spend less on marketing, there is a ripple effect. |
| During the Great Recession, more than $60.5 billion in global ad spending evaporated, according to the WARC research group. It took eight years for the industry to fully recover. | During the Great Recession, more than $60.5 billion in global ad spending evaporated, according to the WARC research group. It took eight years for the industry to fully recover. |
| Close observers of how the advertising business has fared in recent weeks say the new crisis may be worse. | Close observers of how the advertising business has fared in recent weeks say the new crisis may be worse. |
| “It was a seismic shock, possibly the biggest we have faced, ever,” said Harris Diamond, the chief executive of the advertising company McCann Worldgroup. “It all took place in a very short period of time, and is having an impact everywhere we communicate.” | “It was a seismic shock, possibly the biggest we have faced, ever,” said Harris Diamond, the chief executive of the advertising company McCann Worldgroup. “It all took place in a very short period of time, and is having an impact everywhere we communicate.” |
| Overall spending on digital ads for March and April is down 38 percent from what companies had expected to lay out, and ad spending has fallen 41 percent on TV, 45 percent on radio, 43 percent in print publications, and 51 percent on billboards and other outdoor platforms, according to the trade group IAB. | Overall spending on digital ads for March and April is down 38 percent from what companies had expected to lay out, and ad spending has fallen 41 percent on TV, 45 percent on radio, 43 percent in print publications, and 51 percent on billboards and other outdoor platforms, according to the trade group IAB. |
| Advertising giants like Interpublic Group and Publicis have suspended their financial forecasts, saying they were uncertain about the future. The Cannes Lions conference, one of the biggest events on the ad-industry calendar, was postponed last month, then canceled early on Friday. | Advertising giants like Interpublic Group and Publicis have suspended their financial forecasts, saying they were uncertain about the future. The Cannes Lions conference, one of the biggest events on the ad-industry calendar, was postponed last month, then canceled early on Friday. |
| The major TV networks will not be hosting their annual New York gathering, known as the upfronts, to hype their fall shows before an audience of corporate sponsors and ad executives. Similar events for digital platforms like YouTube and Hulu were also postponed. | The major TV networks will not be hosting their annual New York gathering, known as the upfronts, to hype their fall shows before an audience of corporate sponsors and ad executives. Similar events for digital platforms like YouTube and Hulu were also postponed. |
| “We’re working through this as it’s unfolding, just like everyone else,” said Patty Morris, an assistant vice president of marketing for the insurance company State Farm. “There are things happening that we’ve never seen before.” | “We’re working through this as it’s unfolding, just like everyone else,” said Patty Morris, an assistant vice president of marketing for the insurance company State Farm. “There are things happening that we’ve never seen before.” |
| State Farm had planned to advertise during National Basketball Association games and the N.C.A.A.’s annual men’s basketball tournament. It had also expected to run ads during coverage of the Summer Olympics on Peacock, the streaming service that NBCUniversal is scheduled to start nationwide on July 15. And now? | State Farm had planned to advertise during National Basketball Association games and the N.C.A.A.’s annual men’s basketball tournament. It had also expected to run ads during coverage of the Summer Olympics on Peacock, the streaming service that NBCUniversal is scheduled to start nationwide on July 15. And now? |
| “We’re trying to deal with all of the cancellations, trying to understand what’s happening here,” Ms. Morris said. | “We’re trying to deal with all of the cancellations, trying to understand what’s happening here,” Ms. Morris said. |
| With production studios shut down, and filming of commercials at a standstill, a bare-bones style of advertising has emerged. On a recent night, the NBC late-night host Jimmy Fallon read out a State Farm ad in the manner of a podcaster at the start of his shot-from-home episode of “The Tonight Show.” After plugging the insurance giant, Mr. Fallon held up a scrap of paper on which one of his daughters had scrawled the company’s website address. | With production studios shut down, and filming of commercials at a standstill, a bare-bones style of advertising has emerged. On a recent night, the NBC late-night host Jimmy Fallon read out a State Farm ad in the manner of a podcaster at the start of his shot-from-home episode of “The Tonight Show.” After plugging the insurance giant, Mr. Fallon held up a scrap of paper on which one of his daughters had scrawled the company’s website address. |
| On YouTube, the “Tonight Show” episode was preceded in some cases by a State Farm commercial called “New Normal,” a mash-up of old footage and videos made by nonprofessionals. | On YouTube, the “Tonight Show” episode was preceded in some cases by a State Farm commercial called “New Normal,” a mash-up of old footage and videos made by nonprofessionals. |
| Many companies are trying to protect their brand names by keeping their ads away from media reports about overrun hospitals, joblessness and death. | Many companies are trying to protect their brand names by keeping their ads away from media reports about overrun hospitals, joblessness and death. |
| Updated June 12, 2020 | Updated June 12, 2020 |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| As news organizations ramp up their coronavirus coverage, they are losing out on the revenue that would have come their way in more pleasant times, because many companies have stipulated that their ads must not appear near articles that include outbreak-related keywords. | As news organizations ramp up their coronavirus coverage, they are losing out on the revenue that would have come their way in more pleasant times, because many companies have stipulated that their ads must not appear near articles that include outbreak-related keywords. |
| British news organizations, including The Guardian and Daily Mail, wrote in an open letter this week that so-called blacklisting will cost news outlets more than $60 million if the pandemic lasts another three months. “Readers are relying on us right now, and we are relying on advertising,” the publishers noted. | British news organizations, including The Guardian and Daily Mail, wrote in an open letter this week that so-called blacklisting will cost news outlets more than $60 million if the pandemic lasts another three months. “Readers are relying on us right now, and we are relying on advertising,” the publishers noted. |
| The companies that have continued to advertise are treading lightly as they try to find a way to keep customers aware of their products while acknowledging the pandemic. Kentucky Fried Chicken reacted to the changed atmosphere last month by canceling a British commercial, set to a Chopin nocturne, that showed dozens of people eating chicken and licking their fingers. | The companies that have continued to advertise are treading lightly as they try to find a way to keep customers aware of their products while acknowledging the pandemic. Kentucky Fried Chicken reacted to the changed atmosphere last month by canceling a British commercial, set to a Chopin nocturne, that showed dozens of people eating chicken and licking their fingers. |
| In online ads, Audi and Volkswagen have spread out the letters and symbols in their logos to encourage social distancing. A Times Square billboard made for Coca-Cola by a McCann agency also presented the company logo with the letters spaced apart. | In online ads, Audi and Volkswagen have spread out the letters and symbols in their logos to encourage social distancing. A Times Square billboard made for Coca-Cola by a McCann agency also presented the company logo with the letters spaced apart. |
| A recent commercial from Lincoln, part of Ford Motor, underscored the theme of isolation. Created by the Hudson Rouge agency, the ad repurposed footage of a woman and a child in a sparsely decorated house in the middle of nowhere. A voice-over seems to address life during quarantine: “More than ever, your home is your sanctuary.” The commercial then shows Lincoln picking up a car that needs servicing and leaving a loaner vehicle in its place. | A recent commercial from Lincoln, part of Ford Motor, underscored the theme of isolation. Created by the Hudson Rouge agency, the ad repurposed footage of a woman and a child in a sparsely decorated house in the middle of nowhere. A voice-over seems to address life during quarantine: “More than ever, your home is your sanctuary.” The commercial then shows Lincoln picking up a car that needs servicing and leaving a loaner vehicle in its place. |
| “A lot of clients are shifting their messaging to what they think is going to be most useful to customers, to how they can help,” said Michael Epstein, a media-planning executive at the marketing company Dentsu Aegis Network. | “A lot of clients are shifting their messaging to what they think is going to be most useful to customers, to how they can help,” said Michael Epstein, a media-planning executive at the marketing company Dentsu Aegis Network. |
| Many ads now feel like public service announcements. The flu medicine company Mucinex introduced an educational campaign called “Spread Facts, Not Fear.” Images related to washing increased 600 percent in ads on social media last month, according to an analysis by the Pattern89 artificial intelligence platform, and depictions of crowds fell 54 percent. | Many ads now feel like public service announcements. The flu medicine company Mucinex introduced an educational campaign called “Spread Facts, Not Fear.” Images related to washing increased 600 percent in ads on social media last month, according to an analysis by the Pattern89 artificial intelligence platform, and depictions of crowds fell 54 percent. |
| “Today, if you get the tone wrong, it’s an unforgivable sin,” said Mr. Diamond of McCann. “The ability to reach audiences is unparalleled right now, but their willingness to accept marketing messages is limited to the right messages.” | “Today, if you get the tone wrong, it’s an unforgivable sin,” said Mr. Diamond of McCann. “The ability to reach audiences is unparalleled right now, but their willingness to accept marketing messages is limited to the right messages.” |