40 advertising execs who manage $90 billion in spending describe how they're shifting their 2020 budgets in a new report. Here are 4 key takeaways for the TV industry.

• Analysts at the Wall Street research firm UBS surveyed 40 ad executives about how they're shifting the more than $90 billion they collectively manage in ad spending, in light of the coronavirus pandemic.
• We break down the four key takeaways for the TV industry from UBS' 37-page report that was published on April 6.
• Most advertisers say the pandemic has already impacted ad spending, and the majority expect to shrink their budgets for the rest of the year because of it.
• While TV advertising is still declining, it's expected to steal some dollars away from digital in the coming months, because of the current political cycle and the uptick in TV viewership as more people stay at home.
• Connected-TV platforms like Roku and Hulu are expected to see the biggest gains in TV advertising and Disney is the best-positioned cable-network group.
• Click here for more BI Prime stories.

The coronavirus pandemic and uncertainty around how long it will last is forcing many advertisers to rethink their media strategies and budgets for the year.

Analysts at Wall Street research firm UBS surveyed, over the past two weeks, 40 advertising-industry executives, who are collectively responsible for more than $90 billion in ad spending, to gain more insight into how the pandemic is impacting ad markets.

The findings were published in a 37-page report on April 6.

The report revealed that 71% of 2020 ad budgets have already been impacted by the pandemic, and the majority of those affected budgets shrank, as travel, quick-service restaurant, and other marketers adjusted to widespread disruptions to their operations and changes in consumer behavior.

Below, we break down the four key takeaways for the TV industry, including a growing shift in ad spending on connected-TV platforms like Roku and Hulu and a relative advantage for Disney's cable networks heading into the 2020-2021 TV upfront season.

1. The pandemic is already weighing on ad spending and that's expected to continue

Most advertisers (67%) expect the novel coronavirus outbreak to impact their ad budgets for the remainder of the year, according to the UBS report.

Most of those advertisers plan on shrinking their budgets: 74% of those respondents said they expected to decrease their budgets for the remainder of 2020 by a little as 5% or as much as 20% or more compared with their prior plans for the year.

Not all advertisers are pulling back on spending. A small share of those respondents, about 14%, said they planned to boost their ad budgets for the remainder of the year.

But so far this year, nearly every advertising vertical has pulled back on spending across digital and national local TV, the report said.

Digital advertising is bearing the brunt of that pullback because of the growing tendency to buy programmatically, or in real-time.

In TV, financial service and quick-service restaurant marketers are decreasing ad spending the most.

2. TV ad spending is declining, but it's also stealing some dollars from digital

Early data suggests that TV viewership is on the rise as more people "shelter in place" or stay home, and it may be encouraging more advertisers to shift ad dollars to the medium.

UBS asked ad execs about their clients' plans to shift ad spending between TV and digital platforms over the next 24 months. Around 12% of the advertisers expect to shift spending toward TV, compared with 9% during the prior 24-month period.

While some of that could be cyclical, as the 2020 US presidential election could pull in more TV ads, some respondents also called out the recent rise in TV viewership as the motivation for moving ad spending to TV.

Nonetheless, demand for TV advertising is still on a long-term, secular decline, the report said.

About 58% of advertisers expected to shift spending from TV to digital in the coming 24 months, and 30% expect to maintain their current balance.

"Ratings delivery has dramatically improved in recent weeks with the 'stay at home' dynamic but our channel checks continue to point to weakening demand for TV advertising," the report said.

3. Connected-TV platforms like Roku and Hulu will benefit most from any ad dollars that shift to TV

In terms of how advertisers are spending their TV budgets, connected-TV advertising platforms such as Roku and Hulu are expected to see the biggest gains in spending over the next 12 months, according to the UBS report.

It could come at the expense of sports channels. Sports and news typically draw the biggest audiences in live TV. But with most major sporting events on hiatus or in limbo, a growing share of advertisers expect to reduce their spending on sports.

Sports ranked fifth among six TV-advertising categories that advertisers planned to buy from in the coming 12 months, down from second place during the previous 12 months.

"Respondents now rank sports behind kids networks, the most secularly challenged of TV networks," the report said.

4. Disney is in the strongest position heading into the 2020-2021 TV upfronts

TV networks are in for a rough upfront season.

The majority of respondents to the UBS survey expect their clients to spend the same or less on TV ads during the coming 2020-2021 upfront season. Nearly half of respondents also expect CPMs, or the "cost per thousand impressions," to hold steady or decline from last year, which suggests that declining demand could damage pricing.

But Disney, which has taken hits to nearly every aspect of its business in the last month, might be in the best position heading into upfront season.

The UBS analysts asked the ad execs to describe the positioning of each of the major cable-network groups heading into upfront season, and the respondents were most bullish on Disney, followed by Discovery, NBC, CBS, and ABC.

Disney is in the lead despite the absence of live sports on ESPN, its biggest cable network. The company could be faring better than others because of the cable channels it acquired from Fox last year, including FX and National Geographic.

Most TV networks have already moved their glitzy upfront events to virtual sessions due to coronavirus concerns.

For more about how the coronavirus pandemic is impacting media, see our coverage on BI Prime:

• The key factors analysts are watching at 5 major media companies including Disney and Fox to help determine whether their stock will keep falling or rebound: Combined, Disney, Fox, ViacomCBS, Discovery, and AMC Networks lost $92 billion in market value since the last market high on Feb. 19, largely thanks to Disney.
• Disney has closed its US parks 'until further notice' and risks losing $1.5 billion in revenue per month they are shut, analysts say: Disney is extending "until further notice" its closures of its US theme parks, Disney World and Disneyland, due to the coronavirus pandemic, the company announced on March 27.
• Analysts lay out the financial damage each of Disney's businesses could face, as it closes parks 'until further notice' and delays films: Disney is one of the media companies most exposed the impact of the coronavirus because of its large theme park and theatrical businesses.
• Why analysts say Disney and Discovery are the media giants most threatened by the coronavirus, but Comcast could fare better: Companies that generate significant shares of their revenue from theme parks, films, and advertising are most sensitive to the pandemic, and a potential economic downturn it could ignite.
• Why Netflix's business could take a hit from the coronavirus, despite reports that 'stay at home' stocks could benefit: Much of Netflix's revenue growth is international, including markets like Europe and Asia, which are especially vulnerable to the virus.
• Disney's surprise CEO change makes sense because of the coronavirus' growing impact on its business, according to a Wall Street analyst: The day-to-day pressures of the Disney CEO may mount if the coronavirus continues to spread outside of China, drawing former chief Bob Iger's focus at a crucial creative moment.