When to Increase your Ad Spend During Covid-19
September 25, 2020
June 23, 2019
As Covid-19 had a considerable impact on all of us, it also had an impact on the way that people search online. A recent BBC News article dated March 29th showed 6 industries that are having huge success online, with many of those industries struggling to keep up with demand and adapt their marketing to make the most of this time.
But for many other industries, they are not so lucky, and many changes have had to be made, including pausing advertising while fewer people are searching.
This article will look at how advertising has changed during Covid-19 and what your business can do to recover.
Lower Demand for Certain Products
At the start of the Covid-19 outbreak, Google saw a huge drop in the number of people clicking on adverts. There was huge uncertainty about the future, and many people were unsure about when they would be able to work, if the Government would offer any support and if businesses would be open in the future.
For advertisers, this meant that fewer people were clicking on their adverts, and they were getting fewer sales and enquiries online.
On March 9th Italy went into lockdown with many people believing that other countries such as the United Kingdom would soon follow. Now we know that this meant that for many people, they were unable to go to work, visit their friends or go to many places across the UK.
This further increased the uncertainty in the market with people and businesses choosing to hold onto their money until they knew more about the future.
Decreased Conversion Rates
For the people who did a search online, this uncertainty meant that for many people who were considering a purchase, they decided to hold off doing this until they knew more about the future.
Advertisers then saw higher bounce rates, lower conversion rates and a general feeling that their adverts were not performing online.
Many small businesses who were unable to operate in the same way took this as a time to pause all marketing until the situation improved and they knew that their adverts would perform closer to how they did before the outbreak.
UK Government Orders the Closure of Non-Essential Businesses
On March 16th Prime Minister Boris Johnson advises everyone in the UK against "non-essential" travel and contact with others, to curb coronavirus, as well as to work from home if possible and avoid visiting social venues such as pubs, clubs or theatres.
UK Government Announces Plans to Help UK Businesses
On March 17th The Chancellor, Rishi Sunak, announces that £330bn will be made available in loan guarantees for businesses affected by the virus.
On March 18th, the Pound sterling falls below $1.18, its lowest level since 1985.Bank of England governor Andrew Bailey, commenting on the UK and wider economic situation, says: "It's obviously an emergency. I think we're living in completely unparalleled times... It's going to be a very big downturn – we know that."
For many business, they were reminded of the recession and were forced to pause advertising and cut spending as much as possible. This important step to ensure the financial security of their business would, unfortunately, mean that for many people they would get a decrease in enquiries as a result.
As many shops reopen and life returns to normal for many people, advertisers are beginning to become more comfortable with the idea that their business will start to go back to the way it was operating before Covid-19. For many of our clients, they are all seeing an increase in enquiries across all of their marketing.
The ones who are having the most success; however are ones who are quick to react to new marketing trends and restart advertising before their competitors.
If you would like to find out how popular specific search terms are for your market, get in touch with the team at RACER Marketing.