COVID-19 and the global lock down which has ensued because of it have caused a substantial economic impact. The only thing that has businesses going during this pandemic is the availability of the internet and increased connectivity. This has helped various businesses to continue operations despite not being able to open up their shops physically.
Digital advertising has become the number one medium to reach consumers. It has become the quickest and best way to reach out to consumers as people are always online. Moreover, the chances of your social media ad being seen are much higher than ever before.
Yet, a report by PG Media Brands Magna highlights the impact COVID-19 will have on the digital advertising industry.
The report states the following findings:
“Digital media ad formats will be the least impacted due to the acceleration of digital media usage and eCommerce during the outbreak. However, global digital advertising is likely to slow down to single-digit growth this year, compared to +20% per year in recent years.”
Digital Advertising has also been impacted by Covid-19 and here’s how:
1. Decreased Spending on Digital Ads
Even though people are always online, the spending power has reduced incredibly. Additionally, impulse buying is no longer an option for many. Therefore, many businesses are thinking about spending on online ads as their target market may see the ads. However, there could very well be no outcome in the form of a sale from it.
2. Engagement instead of Conversion
Digital spending has always been driven by companies to convert buyers towards their products or services. However, now in the times of covid-19 where everyone is just buying the basics, firms have started building campaigns that are aimed at engaging with its customers and to create awareness for their brand simply. In the long run, since there are more people online now than ever, and a good engagement between consumers and brands would lead to a conversion (sales) later on.
3. Lack of Competition Between Brands
There are fewer brands spending on advertisements; many campaigns have been called off-air; some have been halted before being released and may stay that way until things start getting back to normal.