Another COVID-19 Blog
Author: Daniel Kolossa
With the world going through unprecedented times, I thought to take a look at the impact on the performance- and marketing sides in our line of work.
On Sunday March 15, a state of emergency was announced in South Africa. Following that, on March 23, a nationwide lock-down.
The South African government implemented steadfast rules and them trying to get ahead of the situation is commendable. That being said, the effect that COVID-19 has had - and will have - on global economies is tremendous.
How?
People cannot purchase products as they cannot go outside (this obviously excludes online stores who are able to sell essentials only). Additionally, their buying power is severely diminished, due to general uncertainty of when the crisis will subdue, job losses, salary cuts, and so forth. Demand is low.
Brands are pulling back on marketing spend. Again, uncertainty is a key reason. Here are some key stats published by the IAB:
According to 74% of media buyers, planners and brands, Coronavirus will have a bigger impact on advertising than the 2008 financial crisis.
70% of buyers have already adjusted or paused their planned ad spend, while 16% is still determining what actions to take.
73% of buyers are indicating that the coronavirus will have an impact on the Upfront 2020/2021 spend commitments and expect a 20% decrease in Upfront spend vs their original plan.
Some industries are far more affected than others. Within.co’s retail pulse, which monitors the effects of COVID-19 on eCommerce provides some very good insights on the landscape:
There is a clear shift to social activity and, likely, more brand heavy messaging
eCommerce is seeing a massive drop in investment
So Now What?
Get a job at Netflix.
Ok, so Netflix jokes and Corona memes aside, the truth is, there are also great opportunities. Being very much focused on digital execution, we’re in a comparatively strong place.
Time spent online is at an all-time high.
Marketing spends are comparatively low.
This means, there is an unprecedented opportunity to get attention. See Google’s recently published report on mobility restrictions during COVID-19 for some deeper insights. In a nutshell: Nobody is outside, everyone is inside.
Yes, cause-related marketing is also an approach, but it can wear thin and there is a fine line between being exploitative and effective.
Shift
Whilst there are limits, every brand has the opportunity to shift their messaging, add value during the current time and entrench their thought-leadership. It’s not a time to shut down, but pivot one’s approach.
A large swath of activities have merely pivoted from being social and outdoors to social and indoors. Instead of going to the gym or doing a park run, people are training indoors and working out in groups via video con calls.
There is opportunity.
Plan
When will this end and return to normal? Whilst we know it will, we cannot say when. It will be a while, that’s for sure. There is potential to map out your approaches for this quarter, but even more so, for the long term.
Be proactive. Put the right strategies in place now and ensure you and your clients are ready. Identify where and how you’re able to add value. Work together to achieve success
The same goes for brands: work out what products or services you can offer that resonate with your customers and audiences.
Whilst it may not seem obvious at first, there are certainly ways to be innovative, productive and ride out the storm.
Expediency
Implement what you can, now. As we all know, much gets left by the wayside during a given month of normal activity.
Run audits.
Do housekeeping.
Use opportunities.
Update and rebuild campaigns.
There is a lot that can be done whilst regular tasks lie dormant.
Execute
Yes, ad spend is down across the board. It makes no sense to spend large amounts of paid media when there is a soft demand and smaller market.
However: if planned out well, if correctly identified and supported by research and data, you will attain results. What these results are, and how they resonate with business objectives, is up to you to define.
Conclusion
Stay optimistic.
It’s easy to give in to pessimism, but now, more than ever, is it key to show that you’re able to adapt quickly and effectively. For yourself, your business and your clients.
