The COVID-19 lockdowns have had significant economic effects. In this pandemic, the only saving grace is internet access and improved accessibility, which has helped numerous companies remain operating while not being able to physically open up their shops. While the coronavirus is a major threat to companies and jobs, as a result of this, digital marketing has leaped forward.
Digital marketing has been the tool number one for targeting customers. Billboards which are traditionally the most common type of advertising are now standing in the middle of empty streets. There are no commercial advertisement campaigns and neither are people buying magazines or newspapers. Digital advertisement is the easiest and cheapest way to meet customers right now because people are still online. In fact, the chances of seeing your ad on social media are even greater than ever before.
However, even after digital is the medium in focus right now, a PG Media Brands Magna report highlights the impact that COVID-19 will have on the digital advertising sector.
The report suggests, “With the acceleration of digital media usage and eCommerce during the outbreak, digital media ad formats will be the least impacted. Global digital advertising, however, is likely to slow this year to single-digit growth, compared with +20 percent a year in recent years. ”
Here’s How Digital Advertising Is Impacted Due To COVID-19
1. Decreased spending on digital advertising
The purchasing capacity has come to a halt even though people are still online. Therefore, for many, impulse buying is no longer an option. Because of this, many businesses are talking about spending on online advertising as advertisements can be seen in their target market. There may very well be no gain in the form of a sale out of it, though.
2. Businesses are focused on engagement rather than conversion
Digital expenditure has always been driven by businesses seeking to convert buyers to their products or services. During times like this, however, when everyone is just buying the fundamentals, firms have started building campaigns.
The aim of these campaigns is to engage with its customers and simply create awareness for their brand. This may not prove beneficial now, but it is in the long run as more people are online now than ever before, and a good engagement between consumers and brands would later lead to a conversion (sales) process.
3. Lack of Competition Between Brands
There are fewer brands spending on advertising; many campaigns have been called off-air; some have been stopped before release and may remain so until things get back to normal.
How do you see COVID-19 impacting on digital advertising? In the comments below please let us know.