Why do you need to do digital advertising during a recession?
The globe is under great strain to adjust to the new normal as COVID-19 engulfs the whole world under it. Whatever vaccine is used and at what point, it will take a long time to return to what we consider normal. During this time, many companies have decided to drastically cut their marketing budgets. Recently, Google cut 50% of its marketing budget. According to a study conducted by MarketingWeek, only 7% of brands are using the pandemic as an opportunity. The question is, does it make sense to invest in marketing during this pandemic?
There has recently been a major decline in vehicle travel, and even while TV viewing climbed by 40%, it could not keep up with the surge in internet usage. A stunning surge of 70% was noticed with the launch of COVID-19 in internet utilisation. With these figures in mind, marketers can reap the benefits of digital advertising in a world confined to our bedrooms.
These commercials may not result in actual sales, but the goal of keeping your product in the customer's mind is achieved.
Aside from retention strategies, digital advertising is also a lower-cost investment compared to offline advertising. This cost differential is the main reason many marketers are investing heavily in the digital side of the market as budget constraints become tighter by the day. Apart from budget constraints, advertisers also face the problem of narrowing their target audience. Most of the budget is spent on viewers who either have no interest in the product or simply don't have the budget.
For example, a fitness firm began building an affordable bicycle named 'My Bike' and shifted their target audience to beginner exercise lovers rather than the 'commuting by bicycle' demographic. This, in turn, resulted in a significant surge in 'My Bike' sales, and a waiting period for these bicycles was shortly instituted. Digital advertising proved to be a stronger advertising model for this fitness startup than traditional advertising. The situation is rather different for many brands.
The automotive industry was already facing weak demand and industry stress before the emergence of COVID-19 and needed something to get out of it. For car marketers, budgets were already shrinking and sales charts showed no improvement. Many studies have shown that the post-COVID world will switch to the used car market instead of new cars. This poses a challenge for the automotive industry and they have decided to set up channels for a contactless car buying experience rather than directing their energies towards the brick-and-mortar version. It was done to increase their presence and reduce COVID-19 anxiety when buying a new car. For most car brands, this has proven to be a boon, and sales charts have begun to show vital signs.
While it's worth it, digital displays also convey a special affection to users, allowing brands to understand what their customers are doing at any given moment. Tracking this user engagement is especially useful during this economic turmoil. This is because the costs associated with manufacturing products that are not well-known to customers can be significantly reduced.
The world is currently in lockdown and facing tremendous challenges, spending to gain brand exposure through traditional marketing platforms will be expensive and less effective, while the digital side will be cheaper and cheaper, which improves brand exposure. Coupled with influential audiences, brands can even acquire loyal customers during this pandemic.
The expense of an ad campaign is likewise transparent in the digital world. Traditional marketing initiatives required guessing how well their ads performed by comparing the sales graph before and after the campaign. With the digital side of advertising, a brand can track when, where, and how much money they spend on advertising. This allows a brand's marketing budget to reach a larger and more diverse audience.
This smart way to display branded ads on specific platforms is gaining traction among top brands. The world is changing, and it matters how your brand changes accordingly. Proper education in digital advertising and transparent results can go a long way in securing a lasting place in your marketing strategy. Removing the downsides of showing ads digitally and addressing them through offline channels also helps most brands build a hybrid strategy. But until the pros sink into the brand, wear a mask to protect yourself.
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