Just within a few weeks of its onset, the Covid 19 pandemic has wreaked havoc and changed our lives in an unprecedented way.
To halt its spread, travelling is minimised, schools and offices are closed and most of us are stuck in our homes. The global stock market has crashed. Therefore if you are a business or a marketer, you can get affected in a considerable way because of this.
In fact, data are already showing how it is impacting the economy. Here are some insights –
1. Consumer Behaviour Shifts
The Corona virus spread has compelled most of us to resort to working from home. This has led to more time for personal use spent online. If everything remains equal, this is going to enhance the ad inventory across platforms.
As a result the cost per thousand impressions (CPM) can reduce across the auction-based platforms especially if some businesses scale back on the marketing expenditure during this time.
If the ad inventory increases and ad purchasing power remains the same, then the cost for purchasing the inventory is naturally going to fall.
2. It Is Imperative for Businesses to Struggle for a While
Even if the numbers drop and the virus slows down businesses are going to suffer relatively for the massive losses incurred.
For example, in China the virus has caused a significant depth of over 20% in retail sales. While 6.2% is the rate of unemployment there.
As big houses like Apple shut down for minimising the spread, it implies less profit and income. Although they are paying their employees, not all can do that.
The travel industry is one of the worst hit sectors today. The brands like Indigo Airlines initially decided on employee pay cuts but now has declared to not go forth with it. Virgin Atlantic has asked employees to take a 2 months unpaid leave.
These are just the first phase of layoff. It is estimated that this pandemic will cost the global economy approximately $2.7 trillion.
It is not people losing money but also traffics and conversions.
3. How Various Industries Are Getting Affected
As more and more events are getting cancelled, it is going to have a heavy impact on the participating businesses and those growing around it.
The local based and travel industries are failing to generate the demand that was anticipated because of cancelled events, conferences, sports etc. and global travel restriction.
Again as consumers are not going to movie theatres, malls etc. the ability of the brick and mortar shops for generating profits is becoming a challenge.
As many people stay put in their homes the delivery services like UberEats, Amazon, Big Basket etc. are going to see a rise in demand as they provide services to the doorstep.
Again, as travelling is being restricted massively, the public transits including Uber, Ola, air travel, hotel businesses, Airbnb are also taking the hit.
Supply chain related companies and industries reliant on Europe and Asia or other affected areas can encounter slowdowns of shipments.
Understanding the product inventory and future product changes are important factors to consider at the time of planning the marketing for the next few months.
4. Conversions Are Also Less
The conversion rates have also diminished significantly for most industries. Even the financial sectors have witnessed a fall in conversion rates despite the big traffic boom.
Only the media houses that charge are showing a rise in conversions as people do not want to miss on the updated news about the present predicament.
The travel sectors are offering discount now to counteract the massive losses. But they still have a massive hit on the revenues.
5. No Present Shift in Pay Per Click Cost But Potential Cost Reduction is Expected
Although there are not sufficient data, still the current trend suggests that even though people are not looking for travel or hotel booking, there is not drop of CPC drastically. The cost per acquisition still has a big increase.
Apparently you can still pay the same amount per click but the conversions cost is increasing for most industries except for that of the essentials like toilet paper in some countries.
6. How Marketers and Businesses Should React?
Experts are suggesting a global recession awaiting us in future. So marketers should do what they do best – adapt. Keep an eye on the data for knowledge, stay on top of the current trends and learn the new consumer behaviour. These will help in driving future marketing strategies.
As more people are staying home, the in-store traffic and demands are decreasing. So television and in-home online activities are bound to go up. So marketers should invest in digital, television and direct mail advertisements.
Compassion in advertising is critical for ensuring the brands that remain in the positive light as the world pushes through this phase. This is going to help you achieve long term consumer trust, loyalty and satisfaction.
With the inevitable recession in mind, it is expected that sell-offs will continue. But crisis also ensures opportunity for some. The economic downturn can bring some positives like less competition making it easier to achieve results and also some good deals like reduction in Pay-Per-Click campaigns.
The experts of reputed digital marketing company suggest that the marketers and entrepreneurs should assess changing consumer behaviours and influence on the industries and find new opportunities to deal with the current crisis.