Consumers and businesses face uncertain times in the midst of an international pandemic. Enterprises are experiencing varying degrees of closures, and consumers’ habits change. Business owners face some of their toughest decisions. Should you stop marketing in the event of a pandemic or other crisis? No.
It is now more important than ever to market your business strategically. A flexible, creative, and strong digital marketing strategy will help you grow your business, whether you are a retailer looking to shift your focus to eCommerce or an eCommerce company trying to increase your revenue. Digital marketing is more important than ever for businesses. Before we get into the recommendations and ideas you can use to grow your business, let’s look at how the industry has changed over the last couple of months.
The Age of Digital
Nobody knew what to expect when we first went on lockdown. Businesses were forced to shut their doors. Offices were moved away, and children were sent home indefinitely from school. Many people lost their jobs. Forty percent of retailers* were forced to close due to COVID-19, and the majority of consumers now shop online.
eCommerce sales have surpassed the 2019 holiday season in almost all verticals and industries. The pandemic is not only helping to put eCommerce businesses in a strong position, but it has also helped introduce consumers to the brands.
COVID-19 is forcing us to adapt to changes quickly. Consumers are spending more and more time on their smartphones, turning to online shopping as a solution for their needs. According to a Facebook study, people are finding a way to cope with these tough times by self-gifting or shopping for seasonal items. This gives eCommerce businesses a unique chance to grow.
Stress on social responsibility
The pandemic has not only influenced consumer behavior but also the brand voice. This means more authenticity and social responsibility.
The consumer is looking for brands that are making positive impacts, both in a social-political and environmental sense. Brands are increasingly supporting initiatives that go beyond “making a statement” actually to accomplish good. The landscape from the consumer’s perspective has changed drastically. What about marketing strategies and tactics? eCommerce companies had to change the way they market to consumers completely.
How have brands adjusted the advertising budget?
Since the coronavirus started, many brands have been conservative when it comes to their advertising budgets. According to the Interactive Advertising Bureau (IAB), 24% of brands have paused their spending until the end of Q2, and 46% said they will adjust their ad budget during the same period. Digital marketing is a vital part of any business. While brands may be tempted to reduce their ad spending if they aren’t seeing the desired results, it can also help them grow. As brands cut back on spending, brands can take advantage of the lower acquisition costs.
The Power Digital Effect
We have an array of eCommerce clients at Power Digital, ranging from SMBs up to large multi-million dollar companies. This gives us valuable insight into how consumers and businesses responded during the pandemic. How has the pandemic affected the businesses that we work with today? eCommerce is booming!
Looking at our top eCommerce clients, we see that new users are on the rise. Most brands have seen an average +30% growth YoY in new users while generating a revenue increase of 20-60%. What has been the secret sauce that we have used to drive this INSANE growth in a short time for our eCommerce clients?
- Take advantage of lower acquisition costs by investing more in digital marketing.
- Testing new channels and diversifying our advertising dollars
- Re-evaluating our targeting strategies in order to reach new audiences
- Rethinking our messaging and creative to show how our brands can bring unique value to their customers in these uncertain times
- Reviewing and collecting testimonials from satisfied customers
- Promotions strategically planned
It’s time to be creative. What worked before COVID-19 will not work during the pandemic. Now is the time to be very creative.
2020 hasn’t ended yet! How to make H2 successful!
Here are our top five recommendations for making H2 a successful event, whether you’re a business owner who wants to increase sales or a marketing professional wondering what to do next for clients.
Diversify your Ad Dollars
You’ve likely heard, “Don’t put all your money in one place.”? You shouldn’t also spend all your advertising dollars on one channel. It would be best if you diversified your media mix so that you are always in front of consumers, whether they are on social platforms, reading newsworthy articles, or searching Google. Brands should be everywhere online. Each digital platform has a specific purpose.
- Use social media to share your brand’s story and mission. Invest in social media advertising on Facebook, Instagram, Pinterest, and TikTok. Brands need to establish relationships and connect with consumers. Social platforms should be engaging, fun, and visually appealing. Each picture or video has a story to tell, so focus on that.
- Advertising on Display and Programmatic is a great tool to reach consumers while they are browsing online.
- Search engines let you reach users with high intent who are searching for a need that your brand can solve. Harvesting broad match campaigns will help you identify long-tail keywords that can be used to reach niche audiences searching for your product or service.
- Google Dynamic Search Ads allows you to increase your reach by using multiple placements and more visual representations for prospecting & marketing.
It’s important to know who your target audience is and to be aware of how they might change.
Revamp your targeting
Consumer trends are usually aligned with the changes in regulations and closures that have occurred throughout the pandemic. It will be crucial to keep a close eye on the trends in major cities and your core demographics throughout the pandemic. It’s also important to keep prospecting for new customers because they will be looking to get some retail therapy in order to improve their mood. Think about the entire consumer journey. Each platform has its own unique targeting abilities. One’s strategy may involve a combination of remarketing and heavy prospecting in one channel or both. Targeting will continue to be a key factor in the pandemic.
