With almost the entire planet in a forced lock down, many companies across the globe both small and large have been forced to make business decisions to keep themselves afloat. Many at the peril of employees income, or worse their entire job. Arguably the most popular outgoing to get the chop in turbulent economic times, is marketing. And with that, many marketers will be quick to jump in and counter the money saving idea with the idea of “Now’s the time to double down on marketing to keep new clients coming” or something along those lines. Whilst on paper, more marketing = more sales sounds good, in our current situation, it’s not that simple.
It’s easy to assume that because we’re all on lock down, spending sickening amounts of time looking at a screen, swiping through potential life partners, scrolling through news feeds, purchasing 50m ethernet cables to play Call of Duty from the confines of your own room with 0 lag (I did that), that companies should be spending more on digital marketing. But if there’s one thing we’ve learned so far, it’s that digital marketing is not immune to the impact of Covid-19. Excuse the pun.
Whilst time spent on channels like Facebook, Instagram, Twitter, and the cringeworthy TikTok have seen monumental increases in time spent, they’re also experiencing drops in ad spends. And although this has resulted in CPCs and CPMs dropping a lot giving us the opportunity to acquire cheaper traffic, the reality is that so much of online activity is to drive online users to offline behaviours. Offline behaviours which we are now seeing as a thing of the past for the foreseeable future.
“If you’re lucky, don’t miss this opportunity”
On the other side of the coin however, behind the closed doors of the hospitality, tourism, and events industries, there’s arguably the biggest economic boom unfolding before our eyes. Literally (our computer screens). And this is the the ‘online to doorstep’ transaction space.
For those fortunate enough to fall in a vertical that doesn’t require offline behaviours for a transaction to occur; think online learning, home gym equipment, home entertainment, toys, adult toys (hehe), this is your time to shine. CPMs and CPCs in the UK have fallen north of 20%, and search volume has soared across a number of industries. I challenge you to find a home gym equipment retailer that isn’t back logged for the next 6 weeks nationwide. Home office supplies have also sky rocketed with Amazon deliveries for anything remotely related to a pen estimated to deliver by EOM April. And yes, that’s with Prime. FedEx, UPS, DHL, and every other major freight forwarding giant are doing overtime to cope with the insurmountable surge of online purchasing. Even home and garden seems to be rising. I guess being at home with the wife all day, there’s no excuse to not finish the outdoor entertainment area you promised her in the 90s.
I’ve even grown one of my own clients to quad their transactions in less than 2 weeks through a paid social strategy we run for them. They’ve since 5xd their spend, and our projections suggest that even at such a jump in spend, the CPA will remain steady, worse case increase circa 10%.
So I urge those who can; Review all your campaigns, check your CPAs, CPCs, your impression shares, basically do a entire inside and out review on your current strategy and adjust it to the change in the market place. Because chances are, the £5000pm maxed out spend on Google giving you a 4:1 ROI can scale much, much further now. And who knows, maybe you’ll be a household name when the dust settles.
Thanks for reading. Remember to stay inside, leave only for essentials, and keep your distance when you do leave. We’ll get though this.
Sincerely yours, a marketer stuck in his room.