A Big Correction’: Pandemic Brings Change to ‘Bloated’ Ad Industry

A Big Correction’: Pandemic Brings Change to ‘Bloated’ Ad Industry

The marketing business is going through a period of innovation as it sheds workers and tries to hold on to clients.

A Chipotle ad was shot in Idaho at "a fraction of what a full-blown production would have cost,“ according to its chief marketing officer.Credit...ChipotleJuly 28, 2020, 9:22 a.m. ET

The advertising industry's tendency toward excess “” catered parties in Las Vegas headlined by pop stars; unwieldy internal hierarchies stuffed with countless director roles; throw-it-at-the-wall ad placement “” has persisted for years despite concerns about wastefulness.

The pandemic may force all of that to change.

Some people in the industry say a correction was necessary. Marketing budgets have dwindled as the coronavirus led to nationwide lockdowns and canceled events, and customers are no longer in the mood for flashy TV commercials or bright, cheerful billboards.

The research firm Forrester predicted last week that advertising spending in the United States would decline by 25 percent this year and would not recover until 2023. For Twitter, advertising revenue fell 23 percent in the most recent quarter. Now the platform has said it is looking into subscriptions and other ways to make money that do not depend on ads.

The ad giant Omnicom Group said on Tuesday that revenue