05 Aug How Coronavirus Is Impacting Marketing And Advertising!
By the end of the year 2019, people had already started making arrangements and preparations for welcoming the year 2020. Everyone was filled with great enthusiasm and eagerness. There were large scale gatherings and celebrations among friends and families for welcoming the upcoming year and bidding farewell to the old one. Little did everyone know, that life was about to change drastically for everyone on this planet.
By now everyone would have heard about the disaster that befell our planet in the form of COVID-19. Initially, it appeared in late-2019 in the Chinese city of Wuhan. But slowly its effects were felt around the globe and currently, no country has been spared by this deadly virus. As no medicine could prove effective against the virus, each country had to cease all nonessential activities to prevent further spread of the virus until effective medicines could be made to cure it or prevent its spread. As a result, many sectors of various industries suffered heavy losses and are continuing to bear them until this date. The marketing and advertising sector is no different and has similarly been affected by this pandemic.
Conventionally, the marketing and advertising sector is interdependent on interpersonal connect with physical sectors that provide the commodities and services to the consumers. Now, because all physical activities are running at restricted mode; therefore marketing and ad agencies are incurring heavy losses simultaneously.
With less revenue being generated, marketing and advertisement companies are finding ways to cut short on their expenses. There is a huge shift in their marketing investment as they are directing it largely to market strategy that will drive their online sales. The major part of their budget has been shifted to promote services that offer home delivery. The idea of selling premium products has also lost its significance and companies are shifting their focus to promote entry point items.
As the majority of the sporting and entertainment events have been postponed due to the halt, the advertisers are clever enough to save their investments for later use. It also seems that businesses have reduced their marketing investment strategies that offer short term sales while keeping their brand-building campaigns intact. Spending on digital media has increased in the past six months while other areas like the newspaper have suffered.
Marketing strategies that provide information about consumer sentiments have taken a jump in the lockdown and businesses have been tracking information of consumers in the local area to experience their needs and wants. The companies are working incessantly to build quick response strategies to transfer information across industries.
Some industries are affected greater by the lockdown than the others. Like production, sectors are immensely affected due to a lack of manual workforce while online businesses have actually thrived due to more people being unable to leave their homes.
A recent survey revealed that almost 65% of sectors reported a major decrease in their quarterly revenue and almost 70% of the top brands expect to decrease their expenditures on marketing and advertising practices.
With all this mayhem, industries must focus to regain their balance and think of newer ways for conducting their businesses. It’s high time to double down your profits by rerouting your efforts with creative thinking and a steady approach. While all this chaos means fewer business opportunities, it could also mean less competition for you if you could focus on your targets and devise new ways to get back in the game.
This clearly is a war-like situation and every industry is falling prey to it. The only way out is to fight back hard.
As for marketing and advertising agencies, they should also shed their disapproval for nonconventional methods. They should actively take on as many tasks as feasible and incorporate new technologies and tools to further their objectives. There are expectations that digital marketing and advertising would grow in the future but until then these companies should keep on finding other ways to secure their businesses.