Stats Roundup Coronavirus Impact on Marketing, e-commerce & Advertising
Potential recession is the word on everyone’s lips, even if the majority of people are too afraid to say it out loud. All over the world, economists and politicians are talking about financial repercussions of the Covid-19 pandemic and its side-effects. Still, how big of an impact are we really talking about. First of all, not every industry is going to get hit the same. Covering the entire global economy would take more time and space than any single post can offer. So, in this post, we’re mostly going to focus on marketing and e-commerce (as well as retail, in general).
1. Losses in the retail sector
The first thing worth mentioning is the fact that the retail sector is seeing a massive loss. Sure, some people have made stockpiles, while others have turned towards e-commerce, still, the loss goes at around $2.1 trillion in 2020. The economic uncertainty that will follow is a reason for people to start saving money. Also, a lot of people underestimate the financial impact of impulse purchases. People go to the store to buy one thing that they need and leave the place with two more things that they no need. Fewer runs to the store mean fewer impulse purchases. This hits the retail sector quire hard. Other than this, it’s worth mentioning that the losses depend on the country.
2. Difference between regions
While the U.S., France, Germany, Italy and the U.K. are hit the hardest, across Latin America the effects are not as severe. The worst hit is definitely China. One of the main reasons behind this is the industrial standstill which has left the majority of people jobless. This means that the purchasing power of a huge chunk of the population is seriously damaged. The urban unemployment rate has jumped to staggering 6.2 percent and it might take a while until it starts recovering. Speaking of retail, the sales plummeted by 20.5 percent in January and February. Needless to say, this is quite unprecedented.
3. Content marketing is looking up
Since a lot of people are spending more and more time in isolation, they are bound to consume more and more content. It’s simple math. This is something that YouTube’s figures are clearly starting to show. The problem, however, lies in the fact that with the growing number of content creators, policing this content is getting ever harder. Sure, the algorithm is constantly getting improved and it’s far more sophisticated than before. Still, there are a lot of mistakes and since the YouTube staff can’t assign a human operator to every content under revision, things are quite tricky. Also, due to the importance of Covid-19 as a topic, search engines are working extra hard to sanction all the misinformation and panic spreading on their platforms.
One more thing worth mentioning is the fact that educational content (especially micro-learning) is getting more and more popular online. Some people are trying to get the most out of self-isolation, which means that they want to embark on a road to self-improvement. This ranges from people looking for suitable online courses all the way to those looking to start doing Yoga for the first time. All in all, adjusting to this content is crucial but you need to stay on topic and stay true to your audience and your industry.
4. Not every industry has it the same
Not everything is sunshine and rainbows in this world either. You see, the majority of companies base their digital marketing budget based on their average annual revenue. From the majority of the above-listed, it’s more than clear that their revenue might take a sizable hit. By a proxy, this would mean that their digital marketing investments are getting reduced, as well. Some industries, especially the travel industry and the hospitality industry are completely devastated by this global phenomenon. When it comes to the event industry, the situation is quite curious and unique. You see, unlike travel and hospitality, they can use live event streaming platform in order to somewhat digitalize their presence.
5. E-commerce is just more practical
People are spending more time online, which means that they’re also prone to spend more money online. Furthermore, in the era where leaving your home, especially to go to a crowded mall, is potentially dangerous, ordering things online sounds like a winning combination. Almost half of all global consumers are spending time online. Provided that you can have the item delivered to your doorstep, this is not just simpler but also a safer way of completing a purchase. If the delivery is done according to all the rules of the epidemic, it’s the ultimate form of crisis-scenario consumerism.
6. The brand is still important
Because purchasing power is reduced, the potential customer pool has become a lot of shallower. This is why branding and gaining a competitive edge in marketing is so important. According to some surveys, only a small portion of small business owners claim that they will reduce their marketing spending. Like with every recession, those who make the smallest (and the smartest) cuts, are the ones that bounce back the quickest.
In conclusion
The very last thing worth mentioning is the fact that these are all mere projections. The lockdown laws are quickly getting wrapped up in the majority of countries but it might take a while for blowback to be fully flashed out. Still, when it comes to the above-listed industries, one thing is clear – there’s a rough patch ahead but not everything is as grim as it seems.