First thing’s first. It is pretty obvious COVID-19 has most definitely changed the way we advertise. Pre-2020 and post-2020 are two advertising categories, completely different from each other. Slowly but steadily, the global pandemic has brought in changes that we never expected to see, ever.
Reduced Revenue has Made Companies Rethink Their Expenses
Advertising generally follows the GDP. As the GDPs of many countries sunk, so has the collective advertising spend. There has been a 5-15% drop in most countries in terms of year-on-year revenue starting from the first quarter of 2020.
A large number of media buyers, ad agencies, brands, and marketing planners had all “paused” spending on advertising Q1 through Q3 of 2020. Advertising slowly came back to the priority list starting the end of 2020.
New Avenues to Advertise in
According to an internal research by the digital marketing brand Promo Leads, brands are looking forward to newer, more innovative, and mostly Internet-based ways of advertising.
This predominantly includes streaming services. Brand endorsements and TV ads are becoming increasingly popular among those who want to succeed.
Ecommerce has Swelled
The swelling of the ecommerce websites has prompted advertisers to think differently. As everything from food to essentials is largely being delivered online now, the growth in digital marketing from these brands has also been exponential.
As 2021 wears on, an ever-increasing number of brick-and-mortar shops and establishments that depended on footfall are forced to reduce their advertising costs, whereas conversely, an ever-increasing number of digital companies, service providers, and online brands are doing more and more advertising. That’s why having a solid digital marketing plan for your insurance business is crucial to your success.
More Prominence for Online Advertising
Brands cannot help but utilize online channels of advertising and marketing, and this has led to a greater competition and potential reduction in costs of running such ad campaigns.
Some of these channels are:
- Digital marketing,
- Social media ads,
- PPC and Google search ads,
- Influencer marketing.
In fact, a larger number of platforms have even come up with their advertising and campaign management systems during the pandemic.
A key online advertising change is in the tone of the message. Nowadays, most advertising communication is more serious and less humorous.
Not only are consumers more open to interacting with online ads and social media ads, but some industries have been able to get really bullish with the pandemic, such as home entertainment, gaming, food delivery, and online education.
Although it looks like a lucrative opportunity to jump into any of these fields, note that it’s been tried by many to cash in on the changing needs. The bottom line is, if your offering isn’t unique and if you don’t have experience in the field, you’ll lose, regardless of the volume of interest in an industry during the pandemic.
Shutting Shop vs. Going Online
Many businesses have struggled with the dilemma: Shut the shop or invest in building the ideal digital presence?
The transition is not easy. Making a physical address an online brand is hard work – but it’s worth it. Digital brands have survived. And those who managed to transition to the digital age have also braced through the storm.
Now is the time. When an ever-increasing number of people are looking for things online, it’s only fair that many more businesses jump the offline ship and come online.
Time of the Old is Gone
Samuel Adams, the managing director of the digital marketing brand Promo Leads rightfully states that, “Although the decrease in advertising investments and fall in advertising revenues has been cross-industry, some have been hit much, much worse than others. Older mechanisms such as billboards have lost nearly all of their value, whereas social media advertising has only seen a little percentage being knocked off. I think it really tells us about the world we’re slowly building and where it is going.”
Older advertising and marketing tactics are being replaced with newer ones. This has been a steady change, an effect of the pandemic. Advertisers are afraid of what this might lead to, while a significant chunk of them are already adopting newer tactics and transitioning smoothly into the new world order, the new normal.
Interesting related article: “What is Digital Marketing?“