Since the start of Covid-19 in the US, things are changing on an hourly basis. Not only there have been so many precautionary measures taken but also many businesses are getting affected by social distancing. U.S. private payroll has dropped by 20.2 million according to an ADP report.
The pandemic has caused global markets to crash. The Dow Jones Industrial Average declined by more than 622 points and S&P by more than 81 points according to marketplace.org. Which means all businesses are getting hit by this pandemic. Not only will it change consumer behavior but it will also shift their buying habits. Businesses will have to change their strategies regarding how to operate as well as how to market their products and services.
What does this mean for businesses?
While the full impact of Covid-19 on all businesses is showing up by the increased number of jobless claims, some factors will determine the state of digital marketing strategies during this epidemic.
As Neil Patel said in his recent blog “Even if the virus slows down fast as the numbers have dropped in China, businesses are going to struggle for well over a year because they will have to make up for their losses.”
Corona virus has dropped 90% of store traffic in the last month. It’s time to adjust with challenges that Covid-19 has brought for all of us. Here are some tips for businesses to make a change in marketing strategies these days.
- The worldwide pandemic has affected the social media strategy for all businesses. Facebook and Google, who together account for 70% of the U.S. market for digital advertising are even tightening their budgets without massive layoffs. Facebook is reporting lower demand for paid ads which represents 30% to 45% of their total revenue. This includes lower spending in travel, retail, consumer packaged goods, and entertainment ads. Despite an increase in engagement on social media because people have more time on hand to be active on their social channels. There is less demand for paid ads. Facebook is blocking ads from anyone who is exploiting the situation. Review your campaign settings to ensure the existing campaigns are still performing optimally for clicks, impressions, and costs.
- 63% of marketers plan to change their messaging strategy. Advertisers should communicate with their customers effectively through clear, concise, and accurate emails or social media posts to build and maintain a relationship with them. It will help with any changes in the marketing strategy for the business.
- With more people staying indoors, fewer mobile searches have been reported which will have significant change for PPC strategy in the next few weeks. The U.S. has seen an increase in search volume by 16% as compared to the pre-COVID-19 forecast. The number of hours spent online has increased by 20% on Apps during this pandemic.
As more and more people are spending time online, a rise in the ad inventory has been reported on auction-based platforms. It shows the lower numbers for CPM(cost per thousand impressions). When ad inventory is increasing but the purchasing power is decreasing, ad auction is less competitive and CPC declines. The reason behind this shift is because many businesses are feeling a squeeze in their marketing budgets. This gives marketers an insight to shift their marketing strategies. Increase brand awareness ads and make the most out of your email campaigns. This will encourage customers to stay connected with their desired products/services.
- If you are still running ads, make sure to pause the non-essential campaigns. Stay consistent and extend high performing ads. Focus on helping people to know how they can get their desired product on time through re-marketing campaigns.
- If your business sells essential items, make sure to not advertise out of stock items. It can save customers and businesses a lot of time in maintaining the inventory. Focus on customer experience more than ever so they will not abandon your products/services.
- Google recommends changing your business hours at Google My Business profile if it is impacted by Covid-19. This temporary update will not affect your SEO ranking.
- Change your marketing strategy. From just running ads to creating more interactive content. It will ensure that you care for your customer’s needs by educating them more about your brand.
No one knows yet what type of economic fall this pandemic will bring for marketing. People are not only losing their loved ones but many of them are getting hit by monetary losses as well. Now is the time for businesses to revise their marketing strategies if they want to survive in this situation. Just keep this in mind that we are all in it together and hopefully things will get better in the future.