The novel coronavirus (COVID-19) quickly spread to almost all the countries in a few months. The marketing sector hasn’t been left unscathed. With many people working from home, conferences canceled or rescheduled, fewer brands are spending money on offline marketing techniques such as trade shows, billboards, and radio ads.
And they’re not spending money on online marketing either. As of March 2020, the advertising industry can expect a $26 billion loss in revenue due to COVID-19. On Facebook, ad spending tanked due to cuts in the travel and film industry; two industries that account for 30% of Facebook’s ad revenue.
Nearly 69% of brands are expected to decrease their ad spend in 2020. Even with the spread of the virus slowing down and economies reopening, businesses may take a year or more to regain their footing and make up for their losses.
Brighter days are expected ahead. The downturn for online paid ads is temporary. In the long term, you can expect to see growth in online paid ads, but what should you do in the meantime? We’ll take a look at how COVID-19 is affecting businesses and what you can do to keep afloat in the months ahead.
How COVID-19 is Impacting Marketing?
1. Paid ads are cheaper
Lower costs for paid ads is one of the most significant effects of the coronavirus on online marketing. Due to the pandemic, most business owners have slowed spending on marketing; this is especially true of the film and travel industry.
Because there is a reduction in ad spend right now, if you run ads online, you’ll pay a lower CPC.
2. Email open rates increased
People worldwide are working from home, and they have more time, resulting in an increase in email open rates. According to BounceX, email open rates have increased by 25%. And people are opening their emails faster. The email open rate for the first hour is up 28.6%.
Despite these numbers, avoid the urge to oversell your products or services in your email marketing. During these times, customers look for brands that are relevant, educational, and informative. And with many people experiencing job insecurity, consumers are much pickier on how they spend their money.
In your emails, you should be focusing on ways to weave in relevant and helpful content naturally. So if you are an email marketer, this can be an excellent time to start those email nurturing and lead generation campaigns.
3. Online education is booming
School is out, and online education is in–for both children and adults. Due to an increase in the importance of online education, this is the right time to crank out educational content for your business. Online learning platforms like Udemy, Coursera, and SkillShare are getting good traction. With people working remotely, many look to online courses to develop a new skill.
The future is still uncertain. But with the shape of the future changing so rapidly, it’s more important than ever to avoid knee-jerk reactions and look to data for the answers. Right now, as people are spending most of their time online, businesses should focus on building more and more online presence and their brand.