Across the globe, nearly everyone in the world has been impacted by this developing pandemic. In three months, this virus has spread to nearly every country and impacted businesses in a huge way. Many people are working from home (WFH) and with restaurants and stores being closed, consumers have changed their behavior. Some businesses have been negatively impacted, but others have seen growth during this time.
Last month, some brands experienced record revenue months while some have experienced significant loss. Some have not reported any negative impacts, yet. This situation is rapidly evolving, and we are making decisions by the day or week. Many brands have added special offers to their ads and website, but it is good to avoid messaging possibly perceived as taking advantage of a crisis.
One brand that experienced a record month sells a DIY product for your home. Due to the higher average order value of this product, I questioned if their revenue would suffer. They also offered an extended spring promotion for their customers. The reason for increased revenue could be as simple as customers are home with extra time on their hands.
During this time, do not assume you should reduce paid media budgets; let the data shape your decision. Another factor to consider is if you reduce your brand’s visibility too much it may have unintended consequences. It is likely business will not return to “normal” right away and we may see a “new normal”. Another factor to consider is healthy budgets can indicate having a healthy company.
You should also consider that your message matters. Consumer behaviors are changing as countries take measures to respond to this rapidly evolving situation. An ad that might work today could become socially inappropriate tomorrow. Geico received some backlash from Twitter users who were upset due to the perception company was not “social distancing”. – Read more