With events, trade shows, and concerts being canceled and most countries announcing lockdowns, traditional advertising will be one of the most affected sectors during the current pandemic. According to Influencer Marketing Hub, 69% of brands are expected to decrease their ad spend this year. Statista states that the advertising industry might stare at a potential revenue loss of $26 billion this year. While a report by IAB US reveals that 74% of media buyers, planners, and brands predict the current crisis to have a more significant impact on advertising than the 2008 recession.
We know for sure that companies will tighten their advertising budget due to the economic downturn.
But does it mean that they would stop advertising altogether till they return to normalcy?
Well, if we go by the survey done by GlobalWebIndex, the answer is ‘NO’.
According to the survey, consumers have said that they would not want advertising to stop advertising during the pandemic. A report by Kantar Group reveals that a whopping 77% of consumers expect brands to talk about how they can be helpful to consumers in everyday life.
So, what can companies do to continue advertising at a shoestring budget? How can they cater to consumers adapting to the new normal?
The answer lies in digital advertising!
How Can Digital Advertising Help Companies During The Pandemic?
Let’s look at a few reasons why digital advertising could be beneficial for companies in these trying times.
Change in consumer behavior
Like companies, consumer behavior, too, is undergoing rapid digital transformation. As more countries predict social distancing to continue for a longer time, consumers might switch to digital platforms for everything right from work to shopping to entertainment. In fact, the ad spends for e-commerce sites had already doubled by the first week of March as consumers started buying online due to lockdown. This is the right opportunity for advertisers to make a foray into digital advertising. They can leverage PPC ads and social media advertising to ramp up their marketing efforts. This is not limited to e-commerce websites alone. B2B companies can also advertise digitally to educate or inform users about new business trends and their products and services in the context of the value they can deliver in these changing times as a way of getting new customers.
Increase in media consumption
With people staying at home, digital media is the go-to place for entertainment and information. Conviva reports that there has been a 26% increase in streaming during the pandemic. While Statista reported that 36% of people are watching more news, and 21% of people are spending more time on social media. It’s a trend in almost all countries that are under lockdown. This provides a perfect reason for advertisers to spend on digital advertising. We would recommend focusing all the efforts on advertising in the most popular streaming and social media platforms to grab more attention.
Paid advertising is cost-effective
If the above reasons are not compelling enough to invest in digital advertising, here’s one more – paid advertising has become cheaper! Yes, that’s true. Considering that many companies are not bidding for ad space, companies can bid low to buy ad space. The current pandemic has also resulted in a drop in cost per click. This makes paid advertising a more viable and cost-effective option for companies. Of course, the ads have to be complemented with a strong content strategy. So, companies must focus on planning their strategy well to get more impressions and conversions.
How To Create A Successful Digital Advertising Strategy
Companies should not stay silent during the pandemic if they want to grow. They have to drive sales to get more customers, and for that, they must become visible to new customers and stay in the eye line of their current customers. Here are a few things that companies can do to create a successful digital advertising strategy.
- Don’t replicate, go new: Converting a TV ad into a digital ad during the pandemic is a strict no-no. Consumers want the messaging to be contextual and relevant to the current times. So, do not replicate the same old ad that worked successfully on TV and radio. Create a new one according to the current state of affairs.
- Choose the right digital platform for advertising: There are various digital channels available to the customer, and each of them serves a different purpose. An ad on LinkedIn will be more apt for B2B customers, while an Instagram ad may serve well for young customers. So, choose the digital platform wisely before investing in ads.
- Be smart with bidding for paid advertising: This is the time to advertise as cost-effectively as possible. Tools such as a Real-time Bidding Platform can help advertisers to automate the advertising bidding process, personalize it for each buyer, and optimize it to improve the ad performance. This is the time to be smart about spending money on advertising.
It will take time for the world to return to normalcy. Some even predict that the post-COVID era will be completely different. Either way, companies must adapt to the new normal world and find unique ways to advertise and grow their business. We believe digital advertising could be a good kickstart for the modern transformation.