Advertising companies brace for downturn as coronavirus rattles ad spending

  • 📰 CNBC
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 72%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

As the impact of the pandemic hits businesses and their ad spend, advertising holding companies are preparing for lessened demand and some are telling their employees to expect more staff cuts and furloughs.

CEO John Wren wrote that the pandemic has had an impact on the economy, clients' businesses, "and in turn, on ours." He wrote that the company has solidified internal measures to meet the changing needs of its clients. The holding company operates agencies across the advertising world, including BBDO, DDB and TBWA.

"Regrettably, this will include furloughs and staff reductions across many of our agencies," Wren wrote. "We are doing everything we can to limit staff reductions, and to take care of those who are affected."Wren said agencies will use furloughs rather than permanent reduction "so we can bring people back if, and when, conditions improve and client demand recovers.

Wren also wrote that the company will move people into areas of business that are growing, like Omnicom Health Group. He said the company's executive leadership team are reducing salaries by a third, while Wren is waiving 100% of his salary through the end of September. The company "with few exceptions" has stopped new hires, frozen salaries and has reduced freelancers. It also suspended its share repurchase program.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Yeah.. no more harassing or neverending pubs? Enough of creating fake needs.

Including FB and Google?

FYI $GOOG & $FB are advertising companies

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

This Orange County company has gone from making hair look cool to fighting coronavirusBased in Santa Ana, this company now makes hand sanitizer to help Latinos fight coronavirus Awesome company with an awesome product. Great job Suavecitopomade
Source: latimes - 🏆 11. / 82 Read more »

The 10 US cities least at risk of a housing downturn in a coronavirus-led recession - Business InsiderRedfin projected a milder fallout than after 2008 based on 13 factors, including leisure and hospitality employees and debt-to-income ratios.
Source: BusinessInsider - 🏆 729. / 51 Read more »