We are in the middle of a global crisis. The Covid-19 pandemic has confined us to our homes. It has also confined our budgets when it comes to digital marketing. The end consumer is home-bound, and is saving up for the times that lie ahead. So, expenses have gone down. And, even so, the buying power of the people has been compromised.
It is not just the individuals, several businesses too have been badly hit by the pandemic and the state of lockdown that half the world is in, right now. But, should we lose all hope just yet? No, not necessarily! Contrary to what you have been led to believe, this is not the time to cut down your digital marketing budget radically. It is the time to re-invent, and innovate your digital marketing strategies, and play smart. It is the time to re-think digital ad spends in a whole new light.
During these tough times, we are with you. Allow us to throw some light on the impact of Covid-19 on Ad spends, and here it from our experts how to do things differently in times like these!
50% Declines in Ad Spends To Be Expected Across All Channels
The Covid-19 pandemic has staked huge claims on the lives and livelihoods of people around the world. During the lockdown, the global economy is estimated to take a major hit. If you go by statistics, the number can come up to 2.7 Trillion USD. The un-employment rate too is on the rise. Under such circumstances, it is of little surprise that marketing and sales are in significant decline. Let’s take a quick look at the figures:
- $2.6 Billion loss in revenue, as of March 2020
- 10% decline in revenue, and a huge impact on U.S.
- 40% decline in ad spends in digital marketing
- 30% decline in social media spends
- 30% decline in paid ads
Some Industries Will Thrive, and Some Will Not, During the Covid-19 Pandemic
We understand that the statics can be scary. But before you enter the panic mode, and slay your digital marketing budget ruthlessly, consider this: not all industries are impacted the same way. Take the QSR industry for example. With the lockdown in place, and new norms of social distancing on the rise, the QSR industry has been badly hit across the world. But, even in times like these, some industries will thrive. Take the medicine industry for example. The education industry too is likely to do as usual, without any major decline. Tech buyers are expected to spend more to facilitate smooth work from home measures. So, B2B software sales are expected to rise.
The bottom line: Instead of randomly cutting down on ad spends, brands and businesses should focus their efforts, time and money on creating a better user experience for people visiting their website. Alongside, brands and businesses should focus on longer term digital activities like search engine optimization, social media marketing, email marketing, video advertising and more. Stay connected with your customers! Earn customer loyalty during these times!!
What Are Consumers Doing With Their Time, And How to Get Their Attention
Once again, the consumer behavior patterns have shifted. And, that’s why, digital targeting strategies should too! The pandemic has left us glued to the news channels. The media consumption has gone up. 36% users watch more news these days, 27% of them watch more shows, 21% are more active (or spend longer time) on social media, and 18% consumers play more video games.
To sum it up:
- Media consumption across the globe has gone up
- Streaming is flourishing. There has been a 26% increase in video streaming during Covid-19
- Gaming and Online food delivery are on the rise
- People spend way more time on social media platforms
Businesses should focus their efforts on popular channels where the consumer is spending more time to get their attention. This is how you should segregate your ad budget, and hey, we can help you maximize ROI.
The Conclusion
We are living in difficult times. No one knows what lies ahead or how long the pandemic is about to last. But, what we do know is, having a trustworthy friend or a partner can make it easy to survive. We have been a trusted digital marketing partner to several brands and businesses over the last 10 years. And, if you place your trust in us now, we will not let you down. We can support each other, strengthen our bonds, and get through the times together. Contact our digital marketing experts to avail our services. Call us at + 91 22 23682245/8998, or write to us at info@imzmediasolutions.com
