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.