It is clear that the coronavirus crisis will impact the advertising and digital marketing market . In fact, it is already changing things. Ad spend has been reduced, paused, or completely eliminated. Marketing strategies have been realigned and changed, and marketers are assuming that the cuts in ad spend will be quite noticeable. COVID-19 has had a considerable impact on advertising and marketing companies. Digital marketing agencies know first-hand the crisis in this sector, but you will surely ask yourself, what awaits us?
How is COVID-19 impacting marketing?
The year 2021 has been… different. As you know, the confinement generated by the new Coronavirus (Covid-19) is something new for everyone and nobody was, nor is, really prepared to face an event of such magnitude. In addition to the obvious health crisis, the economic ravages that social distancing and quarantine measures have had are beginning to be more notable. These measures have been adopted with the purpose of spreading the contagions and, with this, resuming routine activities.
Cancellations of advertising projects happen every day because advertising is the first thing that companies cut in the presence of uncertainty in economic issues, estimates that given the current situation, the turnover of the marketing and advertising sector will drop from 10% to 15% in this year 2020.
Despite the foregoing, digital and mainstream media audiences are on the rise.
Increase in consumption
Among the recommendations issued by the authorities is self-isolation in homes. This has led companies to seek alternatives to remain in force and provide quality service to customers, as a compensation for the absence of physical transactions.
However, this does not mean an increase in online advertising investment . In fact, the effect is the opposite. This is due to the fear of making advertising investments that do not have a positive return on investment. Financial resources in times of uncertainty (such as today) are very valuable, so investments must be taken seriously.
It is a good time to invest in advertising
For most companies, this is a good time to improve their positioning in Google , optimizing loading time, content and creating an online store, to name a few, anticipating that, once the contingency is over, things will soon return. gradually back to normal. In this way, your company will be ready for the challenges in the world after the Coronavirus.
To convince you of this, it is important to mention that the demand for web applications, e-commerce, digital strategy and website creation has increased considerably. This increase could be linked to the current restrictions that countries have imposed: since they cannot make purchases physically, as is customary, they look for alternatives of home delivery, “filling” virtual carts or ordering food at home through applications of mobile.
Although there is a decrease in advertising investment, the adaptation, flexibility and adaptability of companies in the advertising and marketing sector will be the key to overcoming the consequences that the current contingency will bring.