Why will those who invest in online advertising win the crisis?
It seems, COVID19 in a matter of weeks switched the global economy to a standby mode. The world froze on the verge of a recession. But even during a crisis, business life cannot completely stop. Instead, it slows down, becomes a little more dangerous and cautious. Such a situation forces experts to be more careful in decision-making, to analyze the market more carefully and track competitors, and to take a closer look at the choice of customers and contractors. It is like a walk in the darkness. Everybody cuts the budget for advertising or even completely stops advertising activity. Many businesses think they can do without advertising for a couple of years. And they are mistaken.
How to Advertise during a Crisis?
Advertising is the engine of progress. When its budget is reduced, the business is automatically going to decline. In times of the crisis, advertising should be wise. If businesses have to revise expenditure, advertising should be still treated as an investment line. Without advertising, there will be no sales. But because of tougher investment control, a crisis is the best time to transfer advertising budgets to the Internet.
Today’s pandemic has taken most businesses aback. Entrepreneurs and organizations around the world react in their own marketing way. They open free access to paid online courses, enter cashback during quarantine, or play with viral content. Coronavirus outbreak encourages companies to move advertising and the services on the Internet to continue to earn money and not stop working.
Move Your Advertising Online
Humanity has challenged the coronavirus by self-isolation. And they immediately transferred their social and professional life to online space. According to the Digital 2020 report, the number of Internet users in the world has grown to 4.54 billion for January. But it looks that the home lockdown has considerably inflated this data within just a few months. The results of this growth are already visible. Britain’s Internet service providers report that traffic has grown by 30%. VPN providers like NordVPN, Cooltechzone, and others record 165% growth of users as a result of remote work mode. No wonder as people are now ready to watch and read almost anything to kill time. And it is the golden time for small and medium-sized businesses to fill this vacuum with their own content. Now it’s appropriate to adjust the advertising activity in such a way as to direct the budget to content marketing, try to catch the benefit of a certain drop in rates in content advertising systems, and, possibly, targeting in social networks. It is a very high chance for this all to work. Some brands are already finding new ways to attract users and monetize their products in digital. They move advertising budgets to social networks, videos, games and online broadcasts.
Expert Opinion of Online Advertising
It is important to take into account the experience accumulated and described by scientists during past crises and recessions. The American academic edition Journal of the Academy of Marketing Science published an article covering marketing processes during a change in economic cycles. It summarizes 31 studies in a decade and a half (from about 2000 to 2015). During this period, the global economy survived through two tough declines in 1998 and 2009. The article analyses the activity of the businesses which showed a profit increase among huge losses of others. And it discovered interesting facts. A British company Reckitt Benckiser increased its marketing activity and advertising costs by 25%. The company began to explain to its customers that paying for more expensive branded products even in difficult times is beneficial. At the same time, competitors significantly reduced their advertising budgets. And Reckitt Benckiser flourished. It proves that during crisis companies have a unique opportunity to strengthen their market position. Do not rush to stop contracts with your advertising agency as it can be the only link to success today.
Advantages of Online Advertising
The current situation in the online advertising market is perfectly reflected by the statistics:
· Native ads receive 53% more views than regular banners.
· 4 out of 10 Internet users follow their favorite brands on social networks.
· The average Facebook user clicks on eight ads per month.
· 64% of consumers click on Google ads when they want to buy products online.
· Worldwide spending on digital advertising is expected to exceed $ 375 billion by 2021.
The figures are already stunning and they keep growing. It is the right time to take advantage of online advertising.
It is vital to remember that even a crisis has its advantages. This is the time to increase your market share at the expense of those who reduce their advertising and lose the loyalty of potential customers. Think about the advertising budget as an investment, not an expense. Of course, it is wise to calculate the level of investments which they should surpass. Remember, that those moving against the tide often appear to be the winners. The reduction of advertising intensity will erase from the customers’ memory. In a crisis, you need to make content that tells why it is profitable to purchase your goods and services. Only appealing content does not work due to the skepticism of consumers.
Naturally, it is important to understand that only the company that foresaw the crisis and prepared for it and accordingly has anti-crisis solutions, can stay afloat.