Companies in China are cutting back on digital-ad spending as the economy slows and recurring Covid-19 outbreaks weigh on consumption, another sign of waning business confidence in the world’s most populous nation, reports The Wall Street Journal.
Chinese internet giants that operate several of the country’s biggest online-advertising platforms recently warned of weak ad spending by their customers in the second quarter. Some also suggested it could be a while before a recovery takes hold, signaling pessimism about the broader economic outlook.
Businesses in China spent about 20% less on all forms of advertising in April versus the same month a year ago, according to CTR Market Research, a joint venture between China International Television and Kantar Group. That followed a 13% drop in March, which marked the beginning of a two-month Covid-related lockdown in Shanghai. CTR has yet to release data for May.