Corona Virus [Covid-19] impact on Digital Marketing

While the full marketing impact of COVID-19 (Coronavirus) on consumer buying habits, brands and agencies is largely unknown, there are many factors that will guide short-term decision making. There are still many uncertainties as to how the next few months will impact the global community, both professionally and personally, so it is essential to look at both spectrums to make educated decisions regarding marketing investments.
When making decisions on advertising campaigns, the two primary areas to consider are
changing consumer behaviors and impacts on individual industries (from supply chains to
point of sales). Strategically thinking through the below thought-starters will be crucial in
making the right decision for your brand or clients.

• CONSUMER BEHAVIOR SHIFTS AND IMPACT Increased “work from home” periods will naturally lead to an increase in the time spent online for personal use. With all else equal, this will potentially lead to an increase in ad inventory across several platforms. As a result, it is possible to see the cost per thousand impressions (CPM) decrease across auction-based platforms, especially as some businesses scale back on their marketing spend during this time. If ad inventory increases and ad purchasing stays the same or declines, then the cost to buy that inventory will naturally fall.

2.As many people opt to remain in their homes, delivery services like Amazon, UberEats, and
DoorDash are likely to see increases in demand due to their ability to provide products and
services directly to the consumer’s door. As many people opt to remain in their homes, delivery services like Amazon, UberEats, and DoorDash are likely to see increases in demand due to their ability to provide products and services directly to the consumer’s door.

With the economic downturn, consumer behavior is likely to change drastically. For those
without significant disposable income, those planning for or are in retirement, and for small
business owners, an economic downturn might result in a sharp decline in their propensity to spend. While consumers could take a “wait and see” approach, advertisers should consider their target audience and how their buying habits may change as a result of the current economic climate. Marketers should continue to look at their performance data and quickly adjust campaigns as needed.

•HOW INDUSTRIES ARE AFFECTED

While the full marketing impact of COVID-19 (Coronavirus) on consumer buying habits, brands and agencies is largely unknown, there are many factors that will guide short-term decision making. There are still many uncertainties as to how the next few months will impact the global community, both professionally and personally, so it is essential to look at both spectrums to make educated decisions regarding marketing investments. When making decisions on advertising campaigns, the two primary areas to consider are changing consumer behaviours and impacts on individual industries (from supply chains to point of sales). Strategically thinking through the below thought-starters will be crucial in making the right decision for your brand or clients.

• CONSUMER BEHAVIOR SHIFTS AND IMPACT

Increased “work from home” periods will naturally lead to an increase in the time spent online for personal use. With all else equal, this will potentially lead to an increase in ad inventory across several platforms. As a result, it is possible to see the cost per thousand impressions (CPM) decrease across auction-based platforms, especially as some businesses scale back on their marketing spend during this time. If ad inventory increases and ad purchasing stays the same or declines, then the cost to buy that inventory will naturally fall.

As many people opt to remain in their homes, delivery services like Amazon, UberEats, and DoorDash are likely to see increases in demand due to their ability to provide products and services directly to the consumer’s door.

With the economic downturn, consumer behavior is likely to change drastically. For those without significant disposable income, those planning for or are in retirement, and for small business owners, an economic downturn might result in a sharp decline in their propensity to spend. While consumers could take a “wait and see” approach, advertisers should consider their target audience and how their buying habits may change as a result of the current economic climate. Marketers should continue to look at their performance data and quickly adjust campaigns as needed.

• HOW INDUSTRIES ARE AFFECTED

As events or, as Twitter would say “Everything”, is cancelled, a trickle-down effect on the businesses participating in or located around those events is likely to occur. After major conferences, sporting events, and other large gathering events have been called “off” and travel restrictions are placed globally, travel and local based businesses are struggling to generate previously anticipated demand. Additionally, as consumers are less likely to go into malls, movie theatres, and other public entertainment venues, the ability for brick and mortar businesses to generate profits becomes more challenging.

While there is a potential benefit for delivery companies previously mentioned, other services such as Uber, Airbnb, public transit, air travel, and companies that put people in close proximity to others will potentially face challenges, as users are choosing to avoid close contact in exchange for staying home. This will not only impact those company’s bottom lines but also their employees’ work schedules and employment status.

Industries or companies that are supply-chain reliant on Asia, Europe, or other highly affected areas might encounter shipment slowdowns. Understanding current product inventory and future production ramifications will be important in planning marketing campaigns throughout the next few months.

Businesses need to produce clear direction on how they will proceed in light of the Coronavirus. As the overall concern for personal health continues to grow, brands will be forced to communicate how they are not only taking precautions with their own employees but also how quality control mechanisms are increasing to ensure no contamination or spread of the virus to their consumers.

➢ HOW MARKETING WILL NEED TO SHIFT

Overarchingly, marketers will have to do what they have always done best – adapt. Staying on top of the latest trends, watching the data for insight, and understanding new consumer behaviours will be key in driving successful marketing strategies moving forward.

As mentioned, in-store traffic and demand are falling daily as users stay home in the US and abroad. As this trend grows, in-home online and TV activity will increase and advertisers can reach their target users during this time by investing more heavily in television (traditional or Connected TV), digital, and direct mail advertising over in-store, out-of-home, and physical advertising due to decreases in public foot-traffic.

As the world pushes through this challenging time, compassion in advertising will be critical to ensure that brands remain in positive light. Businesses should be a resource for their employees, consumers, and other key stakeholders. Ensuring that brands take a compassionate approach to advertising will ultimately lead to long-term consumer trust, satisfaction, and loyalty.

➢Brands Marketing

Consumers are now sitting at home, consuming online content at a rate that has never been envisaged before. The current conversation brands are taking advantage of is to engage the audience in a manner that’s community-driven. It is the right time to take up influencer-activations seriously because influencers too are facing the brunt of the quarantine situation. In this unprecedented time, consumers expect brands to remain sensitive while giving them options of entertainment to choose from. They have given consumers exactly that, on a silver platter, with the help of influencers. As mentioned in the example above, brands have slowly started to move towards influencer marketing to create awareness by finding unique ways to provide value to their consumers. Since influencers have the capability to make their homes into their workspaces, they can definitely act as spearheads in generating awareness to millions of their followers. We are currently witnessing a slow rise in many brands banking on influencer marketing to spread their word and awareness via influencers.
Let’s face it; now it is not the right time for brands to explicitly sell their offerings to their audience without taking the unprecedented situation into consideration. That’s exactly why we brands have started to use influencer marketing to creatively and subtly integrate their products while taking a strong stand against COVID-19. After all, influencers help give any campaign momentum; that’s the beauty of it. COVID-19 is a gentle reminder for brands to find innovative ways to engage with their audience virtually. We are already seeing brand collaborations with influencers across all categories such as food, fitness, beauty, etc. that are trying to disrupt digital content innovatively. Brands have started to take advantage of virtual communication via influencer-integrated campaigns to make the best out of the bad situation.
Brands are now thinking in terms of how they can help their consumers rather than capitalizing on the situation, making their partnerships with influencers more purposeful. Cashing in on an influencer’s creativity to show initiative is the need of the hour. Even though a few brands are taking the onus of spreading the right kind of message, we are yet to see many other brands take the influencer marketing route as the solution to remain relevant. The trickle-down effect has started, and it will boom in a while.

• COVID-19 has really shaken up the marketing world, and with big events being cancelled, marketers are experiencing high volumes of stress due to the fact that they won’t be able to advertise products and services the way they are used to. Instead of being concerned about how things are changing, it is vital for marketers to keep their heads high and start looking at alternative ways to advertise their brands. Change is scary, but it is also full of opportunities.
With COVID-19 in mind, it is important to understand how the marketing industry will be affected and what you need to do to stay on top of your game.

• Radio ads oust people will listen to the radio while they are in the car on their way to work. But now, because people will no longer be sitting in traffic, advertisers will need to find the times that consumers are actually tuning into stations and go from there.

• Television ads The same will apply to television, because instead of watching TV when people get home after work, the TV will always be on, which means lots of opportunities for ads. People will be staying tuned to news channels to find out what’s happening with COVID-19, so marketers will need to place their ads wisely.

• Print ads Since many people are in self-isolation and not getting in their cars to go to the shops, print ads will definitely be impacted, albeit more negatively. People want to receive their news online in order to read up on what’s happening in the world to find out any updates regarding the pandemic; this means that print ads for newspapers will need to consider moving online, if they haven’t already. Flyers will also not be beneficial during the COVID-19 pandemic because there will be less people on the road and people might be concerned about taking a flyer from a person standing next to the road due to germs that can spread easily.

• Out-of-home advertising Billboards will need to be placed at more convenient spots. For example, when people run to the shops, advertisers will need to ensure that they see their billboard on the way, as opposed to placing them on busy roads or the highway, because people might not drive these roads anymore.

• So, what does the future hold for marketers? Marketers need to understand that they have to find ways to adjust to the current situation. No one can be sure how long it will be before there is a cure for the coronavirus. On the plus side, people have always been able to adjust to change, and your consumers will thank you for the new, high-quality content!
Another thing to consider is that, after the pandemic, consumers might not even want to go
back to old ways of doing things. Online shopping is a lot easier and working remotely
means people get to be more productive. When consumers start requesting different ways of consuming advertisements, marketers will have to listen and adjust to the changes that are being requested. Marketers will have to start making use of new and innovative ways to reach their audiences.

While the full marketing impact of COVID-19 (Coronavirus) on consumer buying habits,
brands and agencies is largely unknown, there are many factors that will guide short-term
decision making. There are still many uncertainties as to how the next few months will
impact the global community, both professionally and personally, so it is essential to look at
both spectrums to make educated decisions regarding marketing investments.
When making decisions on advertising campaigns, the two primary areas to consider are
changing consumer behaviors and impacts on individual industries (from supply chains
to point of sales). Strategically thinking through the below thought-starters will be crucial in
making the right decision for your brand or clients.
Consumer behavior impact

1. Increased “work from home” periods will naturally lead to an increase in the time
   spent online for personal use. With all else equal, this will potentially lead to an
   increase in ad inventory across several platforms. As a result, it is possible to see the
   cost per thousand impressions (CPM) decrease across auction-based platforms,
   especially as some businesses scale back on their marketing spend during this time. If
   ad inventory increases and ad purchasing stays the same or declines, then the cost to
   buy that inventory will naturally fall.
2. As many people opt to remain in their homes, delivery services like Amazon, Uber
   Eats, and Door Dash are likely to see increases in demand due to their ability to
   provide products and services directly to the consumer’s door.
3. With the economic downturn, consumer behavior is likely to change drastically. For
   those without significant disposable income, those planning for or are in retirement,
   and for small business owners, an economic downturn might result in a sharp decline
   in their propensity to spend. While consumers could take a “wait and see” approach,
   advertisers should consider their target audience and how their buying habits may
   change as a result of the current economic climate. Marketers should continue to look
   at their performance data and quickly adjust campaigns as needed.

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