Welcome to the Dove Direct Print and Marketing Blog. Today's post, "COVID-19 Marketing Effects and Trends," presents a quick overview of how consumer behavior and various industries (from supply chains to point of sales) are impacting marketing strategies in light of the coronavirus. What remains unclear is the degree marketing efforts are being affected, as data is continuously changing.
Our Quote of the Day:
"The first wealth is health." - Ralph Waldo Emerson
As we march through 2Q2020, one factor is apparent, data collection, while more instantaneous now, still presents a real challenge as no one knows how the next few months will unfold. There are two primary lines of analyses and focus, one being the professional and the other personal. For marketing, one should consider both scenarios to make the best-informed marketing decisions possible.
The Consumer Behavior Aspect
The online world is now subject to a record number of "stay-at-homers" that are burdening bandwidth capacity, compounded by increased online user time. While work from home professionals are engaging clients, there is also a tendency to spend more time online than usual for personal reasons.
Naturally, with more eyeballs online, ad inventory will spike during this timeframe, across multiple platforms. As a result of the traffic increase, don't be surprised to see cost per thousand impressions (CPM) decrease, particularly among auction-based platforms as some businesses scale back.
Alternatively, if ad purchasing remains flat or declines, while ad inventory grows, the resulting price points will likely decrease.
Due to more people under lockdown, online delivery services such as Amazon, Walmart, DoorDash, Whole Foods, and GrubHub will experience a huge uptick in consumer demand, as these retailers deliver goods directly to the consumers. The question then becomes, as human behavior adapts, "Will the volume of online direct to door service remain after the Coronavirus pandemic?" Or, "Will the Coronavirus continue to be with us well into the foreseeable future?"
Consumer confidence can fluctuate because of multiple factors, including retail sales, the housing market, job availability, the financial sector, and of course, wage growth. The economic downturn that is upon us at this time, however, is uniquely different. It is unknown whether or not the short-and-long-term stimulus fixes will be sufficient.
The impact is unclear. We do know that there will be people, businesses, and organizations that will change forever. There may be shortfalls, retirements, or other life-changing events. Keep in mind that government leaders are contemplating another stimulus package for small businesses and individuals. Again, a determining factor will be how quickly these funds can be disbursed.
In a typical election year, consumer spending slows, as nerves tighten around the next elected leader, along with fiscal and monetary policies that affect income and taxes. Under the auspices of the coronavirus, consumers have no choice but to take a wait and see mindset.
That said, consumer buying habits will vary based on the conditions on the ground. Therefore marketers and brands need to stay abreast of how these buying habits are evolving. An excellent place to start is to examine performance data and be ready to edit or re-purpose various campaigns as required.
Modifying Marketing Strategies
Marketers are known for having the best business strategy above all others with the ability to adapt on the fly. Now more than ever, it will be critical to keep an eye on the collection and usage of actionable, insightful data. It will be essential to map divergent and new consumer behaviors. Understanding these changes will be critical for developing successful campaigns.
One area currently experiencing rapid decline is in-store traffic, along with demand challenges, as consumers spend the majority of their time at home. This trend will continue to grow until the coronavirus flattens and trends downward. Marketers, adjusting to these trends, are demonstrating that online, TV, and cable spends are sufficient to reach targets during this atypical period. Right now, the preferred mediums are TV (traditional or connected), direct-mail advertising, and digital. After all, the foot traffic is all but non-existent. Therefore, physical, in-store, out-of-home, and most foot traffic strategies, are all but over for the time being.
To be appreciated, organizations should position themselves as a resource for their customers, employees, stakeholders, and the communities in which they do business. Holistic ad campaigns that are compassionate will raise brands who positively comport themselves. Most importantly, brands that extend compassion and caring in advertising messages will be the entities to garner consumer loyalty, satisfaction, and long-term trustworthiness.
The Net-Net
Brands and marketers should keep a close eye on the trends unfolding as a result of the coronavirus. The event continues to alter and impact consumer behavior while opening the doorway for new opportunities. Marketers that can identify and respond to these opportunities will be in a position to benefit long after the pandemic is over, if and when it ends. We hope you enjoyed this article and thanks for reading "COVID-19 Marketing Effects and Trends!"
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