The worst-hit sectors were real estate and travel and tourism, which plunged 68% each to $34.3m and $10.5m respectively, according to figures supplied by research house, Admango. Others included the automobile, banking and restaurant sectors, all of which saw spend tumble more than 40%.
While the Severe Acute Respiratory Syndrome, or SARS virus is also disrupting other markets such as Singapore, Taiwan and China, the perception remains that Hong Kong is the worst hit.
The WPP chief executive, speaking as the group revealed a 4% fall in revenues this morning, said that while the war in Iraq had not impacted as much as some had expected, SARs was of concern.
"I think the impact of the [Iraq] war was probably a little less than anticipated. I think the networks really weren't affected much in terms of advertising revenues.
"Obviously SARS was not in the numbers for the first quarter so we don't really know what the impact of that will be and that's obviously a concern, particularly in Asia," Sir Martin said.
At press-time, sources said Cathay Pacific was considering grounding its entire fleet, a move that reflected the sharp decline in incoming and outgoing travel. The carrier has also stopped all its advertising and promotional activities.
At the same time, the reluctance by local residents to go out is hitting sectors such as retail, restaurants and entertainment venues.
MindShare Hong Kong managing director, KK Tsang, said that 30% of the agency's clients have postponed their campaigns and warned that the situation could worsen.
"Right now we are only talking about postponements. But many campaigns are time-sensitive; if the virus is still with us by mid-May, clients will start to cancel, leading to a bad second quarter," he said.
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