As of the end of July 2020, over 15 million world population got impacted due to the outbreak of COVID-19. Along with impacting many lives around the globe, it impacted several economies.
The sudden outbreak left many businesses high and dry. Companies are laying off employees, the stock market is crashing, and we are seeing many unexpected things. As corporations took a hit, they are forced to change the spending budget. The following points indicate how businesses are impacted:
- Barriers on face-to-face business
- The disappearance of live events
- No more conferences or trade shows
- Lack of word of mouth spread (small businesses)
- In the discovery phase of shopping a product, search engine, social media feeds, and influencers are popular ways for shoppers to get product inspiration outside a brand’s properties.
- Digital sales growth was 18% more for Q1 2020 compared to Q1 2019.
- For shopping, social media contributed to 6% of traffic in Q1 2019, which was overtaken by 8% of traffic in Q1 2020.
- Digital e-commerce was unevenly distributed. Do it yourself, toys, learning, experienced high growth, while the luxury segment performed at a slower rate.
According to The Annual CMO Spend Survey Research 2020 by Gartner, world’s leading research and advisory firm, Digital channels account for 80% of budgets in 2020. The research indicates the immediate impact of marketing strategies and the spending of companies over North America, France, Germany, and the UK. Of the 10 channels, CMOs said that nearly a quarter (22%) of the marketing budget will go on digital advertising, including display ads, video ads, and paid search. Another 59% spend would go to owned and earned digital channels like social marketing, website, SEO, and mobile marketing. They also added that emphasis on digital channels was magnified during the early months of the global pandemic as consumers flocked online for information, entertainment, and connection.
As a result of the seen budget cuts, CMOs of the corporates are shifting almost 33% of the agency work to in-house.
Digital marketing is likely to be the clear winner post-COVID crisis. From the perspective of marketing, companies are becoming more reliant on digitally promoting their brand. As a part of your digital strategy, here are certain things that can be maintained and followed for your business:
- Interactive content – Your brand can be very well connected with end consumers from your social media handles. Creating shoppable posts, quizzes, polls, makes your followers to be engaged with you.
- Search Engine Optimization – Search algorithms changes constantly. As a prudent business entity, you should be working tirelessly to improve the quality of search results.
- Social Commerce – Social commerce is the use of social networks in the context of e-commerce transactions. Here social media platforms are used to make a more personalized and targeted experience. Given the rise in online shopping during the quarantine, a better experience for a user will lead to a rise in the transactions.
That was synopsis of the future of the digital marketing. Follow this space for further updates.
Blog by Sagar Patel, Secretary – Marketing Analytics Club