Below is a Summary of the responses that shows a fairly even split between those that will see a negative impact of this new lockdown and those that see it not having any real impact. Sadly there is no good news as things picking up.
This may not have been the case a few weeks ago as the response we were hearing from members was that there were signs of recovery and with the financial actions taken over the last 3 months it would improve profitability – although no one was suggesting a return to performance levels before Covid.
I would add that in the call amongst members of the Advertising Association last week, the Ad Association/WARC (World Advertising Research Center) figures for Q2 2020 included a further downgrade of the ad spend in 2021 over that which was reported in July 2020 and is forecasting that the UK’s ad market is not expected to recover until 2022.
I hope that some of this helps inform you as to how the rest of the industry is performing. Over the last 8 months we have heard from CEOs and leadership teams that this information gives some comfort in knowing that they are ‘not alone’ and have been grateful to the openness of their peers to share information and collaborate when necessary.
The Alliance has collaboration at the heart of both its values and agenda so please feel free at any time to give feedback to the work we are doing or where you think we could be focussing more.
Independent Agency Survey: Impact of Lockdown 2
1. How do you imagine this second lockdown will impact your business?
On a scale of 1 – 10 with 1 being not at all and 10 being severely.
Average Score 5.69
2. Do you anticipate your clients spend to change in Q4 as a result of a new lockdown?
Reduce spend – stay the same – Increase spend
Reduce Spend 53%
Stay the Same 47%
Increase Spend 0%
3. Do you anticipate that your full time staff count will change as a result of a new lockdown?
Reduce staff count – stay the same – increase staff count
Reduce Staff 15%
Stay the same 76%
4. Will salary sacrifices be reintroduced as a result of a second lockdown?
Yes – no
5. Are you likely to take advantage of any business support that is available in Q4 (inc furlough scheme)
Yes – No
6. Will a new lockdown further impact your agency’s profitability in Q4?
Reduce profits – stay the same – increase profits
Reduce Profitability 54%
Stay the same 46%
Increase Profits 0%
What other actions are you taking as a result of a second Lockdown?
Open text answer (Max 50 words)
- a) Increase support for staff around wellbeing
- b) Pay out unused holiday to improve personal cashflow
- c) Review staffing costs as part of 2021 planning
- d) Delay recruitment plan