Coronavirus Impact on Digital Marketing, eCommerce & Advertising
The global pandemic we all find ourselves in is spreading at a very fast rate. Such a global event will always disrupt the stock market and cause disruption to all industries globally. There were changes in advertising, marketing, promotional endeavours, and companies had to adapt their business operations. Analysts remain cautious in predicting future forecasts. What we have all witnessed is an unprecedented uprise in digital connection methods. One thing is for sure, people are staying at home much more than before. This is something that needs to be taken into account. Consumers are researching and purchasing from the comforts of their homes more than ever before. The focus has shifted heavily towards direct-to-consumer models and towards ordering and shipping. The economy did not necessarily contract, it just turned to the online sphere. It is up to the industries affected to pivot towards this world along with it.
1. Events
Many high-profile events have been cancelled during this difficult period. Coronavirus concerns will surely make other future events follow suit. This is a problem for a multitude of reasons. It results in a sunk cost for attendees. Organizers are losing deal-forming opportunities. Products are not getting announced, etc. Usually, the organizers do not get their money back. Many of these events have pivoted towards the online sphere. These have begun to unfold behind closed doors and without live audiences all in favour of the virus not spreading. The audience is still going to be interested and watch the events, even over a live stream. This is a great contingency plan for any event to have in their back pocket. We never know when the next surge in contagion will arise. That is why events are pivoting their media strategies towards more indirect channels.
2. Advertising trends
At the beginning of 2019, studies found that online expenditure has exceeded the offline method for the first time in history. It accounted for more than half of all global advertising spending. By 2023 digital advertising will account for two-thirds of the total global media expenditure. Other studies show this has been an ongoing trend for a while now. The COVID-19 pandemic has only expedited the process. The pandemic has proven to be the catalyst for a fast digital transformation at a great scale. Such a global event has changed the way people consume and behave. Television, radio, newspapers, etc. represent the more traditional forms of consuming multimedia content. These are giving way to social media platforms, online videos, etc. As we can see, these forms of media consumption are not directly influenced by a global pandemic. This goes to show that the market was transitioning online long before the COVID hit.
3. Audience behaviour
To satisfy this sharp increase in online content demand, we have witnessed many platforms evolve over this period. Everyone is trying to keep up with the competition and consumer demand, which is only natural. The pandemic of 2020 has made it much more complicated and no one was able to predict the direction in which everything will pivot to. Along with consumer demand, their profile has changed, on average. We always had early adopters who are willing to quickly embrace the new and throw away with the old. The pandemic of 2020 has forced many traditionalists to embrace digital alternatives. Everyone needed a safe way to remain connected with the outside world. Everything from satisfying basic needs such as ordering food to all sorts of niche services and products, there is something for everybody online. This increase in supply has changed the behaviour, expectations and mode of consumption for the audience.
4. The impact on online sales
It is only natural to assume that everyone being inside for this long would drive up online sales. And we would be right to make that assumption. Most notable is the sharp rise in online sales around March 2020. The market share that online sales gained almost doubled. Logistic companies have pivoted their business practices towards online purchases. Also, many have announced that they are recruiting many more employees in order to keep up with the demand. They are anticipating this trend to not be a fluke but a steady rise over the coming periods. Traditional products and services need not suffer. As long as there is an efficient way to bridge the gap between a brand and its locked-up customers, the business world can keep on spinning. Online shopping has also negated the need for most of the expensive brick and mortar stores in favour of drop shipping.
5. Brands
Each company has their own way to react to a crisis. As we can see, there has been a huge advancement in the ways companies are responding to this shifting, globalized market. Brands have had to adapt fairly quickly since March 2020. These shifts came in many different forms. The way brands communicate with their audience needed a serious overhaul. The way a company gets through to its intended audience proves time and time again to be the differentiating factor for a business. All successful marketing does not stop at the concluded sale. Customers need to be engaged before, during, and after a purchase was made. Satisfied customers are recurring customers. They are also the ones that will recommend the product or service to other potential clients. Now, more than ever, it is important to keep that notion going. To make this work will be different for each company, industry, and brand.
6. Social media tools
Brands have also pivoted towards more clear language that caters to the shifting marketplace. Deceptive paid endorsements and advertisements are heavily sanctioned in the online world. In some places, these are outright illegal. Brands need to tighten up their approval process by disclosing their paid endorsements and advertisements. It is of utmost importance for brands to express clear and accurate content. Especially from influencers and endorsers. Representatives that market their products and services must disclose any compensation received by the brand in question. That being said, there is a large growing focus on influencers and paid endorsements. As more and more people are cutting the television cord, they are transitioning to online video platforms. An online video editor can be of great help in this case. Advertising takes on a new shape where online stars promote certain brands. Contests and giveaways are also a very efficient way to get your message across and promote your brand.
7. E-commerce
Brands have been working for years to make a customer comfortable with buying something they have not experienced in person. As mentioned before, many consumers did not have a choice when the lockdowns hit. The amount of money spent on e-commerce sites has increased several times when comparing 2019 to 2020. Sure, shopping in actual physical stores will increase as things eventually return back to normal. But the fact of the matter is, the retail industry is forever changed by this global event. The average consumer has enough trust build in the online method that most of them will forget about the conventional way of doing their shopping. A new baseline has been set for when the world returns back to normal. Online marketing is more important than ever which Hopping Mad can attest to. Businesses are seeing the increasing demand and are scrambling to fill in the gap.
8. Growing in lockdown
The global pandemic has only accelerated what was already coming for years now. Those that were postponing the change in their business practices are in a hurry to pivot as fast as possible. There is a huge amount of data from various sources which can help anyone willing to sift through it. Marketers can reassess and reshape their activities and budget allocations. One of the big shifts in what people are prioritising during these hard times. People value different things during difficult times. Try and position your brand in such a way as to offer the solution to their problems. In times of crisis, there is always the opportunity to take a portion of the market share from the competition. Brands tend to react slowly, which can be made advantage of. Be flexible and fast in pivoting your business strategies in order to be the first and the best to reach potential customers.
There is no question about the impact a global pandemic has had on all of our lives. It is up to us to closely study the rapidly changing market and make the most of it in order to grow and make a better tomorrow.