The claim that 2020 is a special moment for global digital marketers is an understatement. A health crisis such as the COVID-19 pandemic doesn’t have a blueprint.
COVID-19’s long-term effects on consumer purchasing patterns is still unknown. Many factors influence short-term decision-making. There is still a lot of uncertainty about how the next few months will impact the global community, both personally and professionally. It’s thus essential to look at both spectrums to make educated marketing investment decisions.
The two key areas to consider when making decisions about advertising campaigns are changing customer habits and impacts on industries. It’s crucial to think strategically through to make the right decision for your brand or customers. Marketing during COVID-19 is challenging, but it can be fruitful.
Read on as Law Firm SEO explores COVID19’s impact on digital marketing.
CONSUMER BEHAVIOR SHIFTS AND IMPACT:
People now work from home. This contributes to a rise in personal time online. Eventually, this leads to a rise in ad inventory across several channels, with all else being equal. As a result, cost per thousand impressions (CPM) decreased across auction-based platforms, particularly as some companies scale back on their marketing during this time. When ad inventory increases and ad purchasing remains the same or decreases, the cost of buying the inventory automatically decreases.
As more consumers stay home, delivery companies like Amazon and DoorDash thrive. Their ability to deliver goods and services directly to the consumer’s door is in high-demand now.
Consumer behavior is likely to change dramatically with the economic downturn. For those with no substantial disposable income, those who intend for or are in retirement, and for small business owners, an economic downturn may lead to a rapid decline in their propensity to spend.
While consumers may take a “wait and see” approach, marketers should understand their target market and how the current economic environment can change purchasing habits. Marketers should look at performance data and quickly change strategies when appropriate. It’s also a great time to explore reputation management and guerrilla marketing.
How businesses are impacted:
As activities are canceled, services like Uber, public transportation, air travel, and businesses that bring people close to others face difficulties. Consumers avoid close interaction in return for staying at home. It affects not just the bottom lines of those businesses, but also the job arrangements and employment status of their workers.
Industries or supply chain companies reliant on Asia, Europe, or other highly affected areas experience slowdowns in shipments. It’s critical to know existing inventory, and potential ramifications of production, to prepare marketing strategies over the next few months.
Real Impacts on Marketing Efforts:
Evolving consumer behavior inevitably leads to changes in media consumption. This in turn causes marketers and advertisers to rethink their current marketing efforts. Marketers must find the best compromise between defending their brand and keeping their business profitable.
63% of advertisers expect to adjust their marketing approach as a result of COVID-19, according to the Interactive Advertising Bureau. That said, another 17% still haven’t decided. Projections from eMarketer indicate COVID-19 may result in global media consumption taking a hit. It is, however, too early to predict the full extent in countries where the effects continue to evolve.
While the duration of this crisis still uncertain, further evaluation of the impacts on the marketing and advertising environment would beis critical as the situation progresses. Here are just a few of the latest implications:
- Marketers rely on marketing automation and UX to make every touchpoint matter. Some speed-up operations in certain regions.
- Marketers increase expenditure on channels that align with shifts in customer behavior and cut costs where they are no longer relevant or appropriate.
- E-commerce advertising is predicted to increase by 17.7%, and social media spending is expected to rise by 22.2% as people seek responses through e-commerce platforms to social media and their home goods needs.
- Many brands move from “come visit / shop /purchase / dine/join” marketing to a more appropriate and timelier human and health-oriented message, with some specifically focusing on an evergreen branding strategy.
- Traditional TV ad investment is affected by the suspension of most live sporting events because of viewing losses.
- Spending on out-of-home ads is already decreasing due to social distancing and self-isolation, as people spend more time online.
- For minimizing event cancellations, marketers focus on digital alternatives. Companies support video conferencing, interactive events and raise technology requirements and improve mobile network experiences
- Marketers focus more on high-traffic channels such as Amazon DSP, paid search, and social channels to track news and shopping trends.
- We should start to see an increase in contextual advertising techniques, being mindful of where ads are running, and against keywords that may have a negative impact.
Author Bio: Dan Toombs is the Founder and Owner of Fast Firms. It is the leading law firm marketing company in Australia. And globally offers a cost-effective marketing program that involves well-planned campaigns and industry-specific tactics. The expert team at Fast Firms is dedicated to assisting and providing assured results for any requirement.