“The shelf was empty, let’s try advertising”… Advertisement industry emerges from supply chain disruption

[이데일리 김보겸 기자] The ad industry has also taken an emergency due to the prolonged global supply chain crisis. Companies began to question this as it became difficult to supply easily in everything from raw materials to manpower to cargo containers. ‘I can’t stack enough products, is it correct to promote?’

The Wall Street Journal (WSJ) reported on the 30th (local time) that “the supply chain crisis is making companies question whether they still need advertising.” Demand is increasing as the global economy recovers from COVID-19, but production is not keeping up with demand as supply chain and logistics bottlenecks overlap with job shortages.

“It’s not wise to drive demand when the shelves are empty,” said Susan Canter, CEO of Sterling Brands.

Companies are also reducing their advertising spending. Chocolate maker Hershey said it cut advertising and marketing expenses in the third quarter. Michelle Buck, CEO of Hershey, said after the earnings release, “If additional demand is created from Hershey’s highly influential advertising, it will not be able to handle it because of supply chain issues.”

Kimberly Clark, famous for toilet paper, and Church and Dwight, famous for detergent arms and hammers, also cut down on ads one after another. Maria Henry Kimberly, Clark’s chief financial officer, said: “If advertising had continued to the previous level, the supply shortage of Kleenex toilet paper and Haggis diapers would have been exacerbated.” Now, supplying products to customers itself is a challenge.

As supply continues, the advertising industry is expected to take a bigger hit in the fourth quarter. This is because the fourth quarter, when the year-end holiday season is in place, is considered a key point in the advertising industry. Jason Weiganheim, president of the media company Bustle Digital Group (BDG), said, “There is a serious product shortage in various fields such as automobiles and diapers, toys and food, and home appliances.