SEM agency Smarketer, with the help of Google and Microsoft, recently published a guide that gives helpful advertising tips to different industries on how to cope with the current COVID-19 crisis. Of course, many changes are happening in the economic sector during the current situation, but advertising is still important and should not be neglected now either. Even now, industries can take a look at their options and develop new strategies so they aren’t left behind during these times of crisis. Although conversions are falling, CPCs are skyrocketing. Companies need to revive their creativity in times of crisis. Many choose to promote themselves on Instagram or other social media. Smarketer gives helpful pointers for different industries ranging from retail, travel, technology, and software to lead gen.
Maik Lehmann, Head of Product at Smarketer, commented on this in an interview with the website Onlinemarketing.de. He advised companies not to retreat during the current situation and to not put planned budgets to sleep or to cut them completely. Sales are not going down in all areas of business, after all. It is necessary to adapt to the current situation. Lehmann also recommends stabilizing your performance first, then shifting the budget to adjust so that upper funnel campaigns can then be reintroduced.
Keep in mind that digital products and services are benefiting the most. People are spending more time at home, more time on their cell phones, on social media, in front of the TV, and on the internet in general, and internet providers are profiting from this. Home improvement stores are also bursting at the seams during Corona since people finally have time to do work on their homes, yards, and gardens. Holding back upper-funnel campaigns would not be a good idea for these industries. Budgets can be invested in Google Ads or YouTube Ads, clearly a good option here.
However, Lehmann adds that when acquiring new customers, care must be taken to ensure that the company is not affected by delivery problems or inventory shortages. It is also significant to note that CPCs continue to show stable values, and in some cases have even fallen sharply. This could be due to rising demand, but also to the withdrawal of major advertising investing. A third reason could also be responsible for the value of CPCs: large players caused a turnover in the advertising market since a lot of them withdrew from it due to the pandemic.
In terms of performance and potential, Maik Lehmann recommends taking stock of the current situation and taking a look within the company at which areas are already being optimally served or are even exhausted, and where the target group currently lies. The use of YouTube Ads and Google Ads is a good idea for reaching new target groups at this point.
By utilizing the creativity of a company, a new brand message can be created that users associate with something positive. Companies can try this out on social media as well as through on-page changes.Online stores are also accommodating their customers in new ways these days. Installment payments or zero-percent financing are just two of many options to meet customers in the middle regarding trust, reliability, and sticking together. Food service providers that are currently closed, for example, are currently advertising vouchers and gift cards, which can be purchased online and have a longer validity period.
Demand is changing right now, though basic needs and the demand to meet them will of course remain (think: personal care products and food). Advertisers take advantage of the increased demand and adjust their budgets to meet it since this also allows them to reach new target groups. It is also possible to respond with price increases for new customers, as well as conversion campaigns.
Of course, this should not be done in a particularly conspicuous manner; if prices are much higher than usual, customers will bolt.
How life will continue after the crisis is still unknown. Therefore, Lehmann advises watching your impression shares and keeping an eye on your competition.
Right now, really popular areas such as retail, pharmaceuticals, and healthcare can even increase their budgets, as demand here is very high and stable. Placing ads on YouTube or the Google Display Network is ideal. In the retail sector, the focus is on communicating with customers, as this is where supply chain and delivery issues can occur. In these areas, demand must be kept in mind. In some cases, new strategies will probably only play a temporary role.
The travel industry has been hit particularly hard. Due to border closures and travel restrictions due to the COVID-19 crisis, bookings dropped by about 50%. Even Smarketer’s guide can’t offer much help here; it is advisable to cut back or pause budgets and campaigns for the time being.
As opposed to the travel industry, the technology and software sector is profiting and has an advantage since it is now worthwhile for them to invest in the placement of new advertising and provide offers and discounts. Nevertheless, the “how” plays a big role here. Brands that are obviously trying to profit from the crisis will appear in a particularly bad light.
According to Lehmann, telecommunications providers and real estate companies in particular could benefit from lead generation. Industries such as medical practices and law firms are also more in demand now than usual, he adds.
Marketing remains a multi-faceted area during this time. The position that one’s company takes should be constantly scrutinized. The performance of your business lies in your hands now.
