Despite TV, streaming and social media use hitting record levels, the Coronavirus has sickened the advertising industry. That shouldn’t come as a surprise as ad budgets are often one of the first expenses cut economic downturns hit. Some of the world’s largest ad agencies have issued dire warning about earnings. WPP, the world’s largest ad agency, pulled its dividend and share buyback and withdrew 2020 guidance. Publicis said it would need to “rigorously manage its expenses” and IPG withdrew financial performance targets for all of 2020. Even goliaths like Facebook and Google have adjusted guidance downward despite record audiences, users. And at Davis Ad Agency, we’ve felt the effects too. But the effects have been cushioned by one advertising segment that, for the most part, has continued to advertise, personal injury law firms.
Other ad agencies and media vendors are experiencing the same boon. We’ve been hearing it from our media vendors coast to coast, Pennsylvania to Washington State, Colorado to Indiana. Just last Friday we spent over six hours in Zoom meetings with stations around the country. And in every market, we’re hearing the same thing. PI Law Firms have continued advertising while other advertisers like car dealers and major retailers have cancelled. Certainly, a couple of law firms have cancelled and many have pulled back but 90% of all PI law firms have remained on air throughout the Coronavirus crisis. They’ve taken advantage of record TV audiences and unprecedented brand building opportunities despite accident cases being cut by 50%.
On behalf of the ad industry, thanks to America’s personal injury law firms. You’re good medicine for all of us.