How the Corona Virus has affected Advertising & Marketing, and how you can grow your company during these unprecedented times.
• 69% of brands expect to decrease ad spend in 2020.
• 74% of brands surveyed are posting less on their company social accounts at present.
• 34% of respondents have shifted social time from Instagram to Twitter – Instagram has experienced a 14% drop in engagement, Facebook a 13.5% drop.
• 34% have cancelled an advertising campaign completely, 45% have stopped or pulled a campaign mid-flight, 38% have paused all new advertising efforts until later in the year, and overall 89% have taken some action with their advertising budgets.
STAY THE COURSE!
NOW is the perfect opportunity to get in front of your audience and ahead of your competition who are holding back or being conservative because the marketplace is less crowded and there is a more involved online audience.
- 1 out of 4 companies intend to make use of the momentum to maintain or increase their presence in the media.
- Retail email open rates rise 25% week-on-week as compared to a general 5-10% open rate, plus desktop interactions versus mobile have increased because more people are working from home on their laptops.
- Cost per 1000 impressions are down and cost per click is flat or down.
The changes in advertising spend differ significantly by media type:
- The biggest loser is Google display advertising, with a 47% reduction in budget spend;
- Paid search continues more normally, however, with a comparatively smaller 24% drop in budget;
- Paid social media has also suffered a 45% drop;
- Linear TV sees 42% pause, cancel, or pull budget.
Online shopping seems to be particularly popular with Millenials and GenZ. 30% of people aged 18-39 say they have increased their online purchases. 65% agree that advertisers are focusing spend on media that can show direct sales outcomes, for example:
- online sales;
- form submissions;
- use of hastags (most popular: #stayhome);
- and instant messaging/messenger (over 50% increase).
Instagram and Facebook Live views have doubled, seeing 70% more time spent across their apps. Just 8% think brands should stop advertising:
- 78% of consumers think brands should help them in their daily lives;
- 75% say that brands should inform people of what they’re doing to stay safe;
- BUT, 74% think companies should not exploit the situation.
It’s all about how you word your messaging as well as the images chosen in your display advertising. 27.4% fewer images and videos depicting models displaying human interaction, such as hugging or shaking hands.
DO NOT GET LEFT BEHIND
I have a fortune cookie fortune taped to my computer that reads:
“If you can’t decide up or down, try moving from side to side.”
The successful will figure out a way to continue staying relevant and in the forefront of their customers’ minds, even if they don’t respond until confidence in the marketplace improves. Also, dont forget to keep your relationships strong with your current customers. Keep communicating with them about your company protocols to keep them and your employees safe while continuing your business.
As a fellow business owner with employees, I know first-hand that budgets are being evaluated and re-prioritized. Advertising budgets are always the first thing to be cut. However, I encourage you to adjust that “cut” but do not cut it out!