Coronavirus could cost U.S. advertising industry billions

SHEILA DANG | March 12, 2020

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The U.S. advertising industry could face steep losses as sports leagues cancel or postpone live events and consumers spend less while many stay at home during the coronavirus outbreak, experts said on Thursday. With companies widely expected to slash marketing budgets, the ad industry could see nearly $26 billion in lost revenue, or a 10.6% decline, Michael Nathanson, an analyst at MoffettNathanson, estimated in a research note on Thursday. The coronavirus effect on live sports, one of the last remaining categories that continues to attract large audiences and therefore advertisers to traditional television, could “accelerate a meltdown” for TV advertising, said Richard Greenfield, a media analyst at Lightshed Partners.

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