With the Covid-19 outbreak, ad spend is on the decline. But how can your business make the most out of the crisis?
Before we mention how the coronavirus pandemic impacts online ad spend, keep in mind the changing consumer behavior. We are seeing an unprecedented increase in people staying indoors.
This means people are spending a significant share of their lives online. And we will most likely see this behavior remain for a considerable amount of time when the pandemic ends.
Some observed ongoing trends:
- People are spending more time online.
- Businesses and their marketing teams get more hesitant when making decisions about ad spend.
- People are waiting for governments to ease restrictions so they can “go back to normal.”
- People’s purchasing power is significantly down.
So, how can brands reconcile these trends and make sound decisions on their ad spend?
COVID-19: The Current Ad Spend Landscape
Coronavirus was initially compared to the 2008 financial crisis, but as time went on, we saw more and more associations with the Great Depression of the 1930s. As the crisis has worsened, it looks like we will face the greatest recession in the world’s economy since that time.
Pandemic Impact on Consumers
With worldwide unemployment figures hitting a record high, almost no country is exempt from this trend. The US is seeing an unprecedented number of people filing for unemployment.
And this, of course, negatively impacts buyers’ confidence and consumer spending, even for those less affected by the coronavirus crisis.
However, according to SEMrush data, the “buy online” keyword skyrocketed in March globally for up to 27K+ searches per month. So, it seems that users are ready to spend online and do some online shopping, while the real shopping experience is still far away.
Pandemic Impact for Advertisers
By and large, the ad spend has dropped dramatically. And this is true for both large and small brands — from your local brick-and-mortar grocery to multinationals.
Digging deeper into SEMrush data, when we compare February 2020 to March 2020 stats, we see a huge shift in digital ad spend. – Read more