As the novel coronavirus continues it’s impact across the world, some industries are flourishing while others are hanging on by a thread. It has forced businesses to evolve, innovate and make serious changes to their business models in order to survive. COVID-19 has changed marketing and consumer behavior in ways no one saw coming.
Tracking data by Media post shows that U.S. ad spending has hit a new bottom and it’s finally beginning to see some signs of recovery as the end of Q3 looms around the corner. Marketing firms and professionals alike have proven to be innovative and savvy in unprecedented times of uncertainty. They have fought to restructure and refocus their brands to provide value and confidence to consumers as instability continues to rise throughout the marketing world.
COVID-19 has forced marketing professionals to take a humble step back and redefine how they want to connect to their most precious resource, the consumer. Going forward marketers will have big operational and business changes that will redefine how they conduct business with their counterparties and customers.
Let’s take a look at the different ways COVID-19 is changing marketing and consumer behavior.
COVID-19 has made more marketing companies realize that their day-to-day operations can fully run remote and excel. This is even more the case with digital marketing agencies who rely primarily on software to create and run their advertising and marketing campaigns.
Digital communications companies like Zoom are leading the remote culture with their long suite of products such as their cutting edge video conferencing, phone systems, video webinars and so much more.
It’s no question that they have experienced some serious growth during COVID-19 and are the leading provider for companies who are transitioning to a remote based model. Zoom’s stock price has more than quadrupled in price since the start of the pandemic and is showing no signs of slowing down.
ZOOM (ZM) stock price during COVID-19
Companies like Facebook and Twitter have also jumped on the remote bandwagon and will allow employees from certain departments to continue working from home for the near future. More and more companies are following that lead as they realize that working from home does not cause communication or productivity issues amongst their employees. Some companies have even reported that working from home during COVID-19 has had an overall positive effect on their workers’ productivity.
Some of the reason for this include:
This leads us to discuss some of the advantages of working remote home and some of the disadvantages of working remote.
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You often hear how awesome it is to work from home and now that many people are getting to experience it for the first time in their careers they are hooked. Some of the advantages of working from home include:
While working from home for some is ideal it can be quite problematic for others. Some believe that having employees in the office creates less distractions and makes them more productive. Some of the disadvantages of working from home include:
COVID-19 has disrupted many industries across the globe and as a result has forced them to make some serious underlying changes to their business models in order to survive. Marketing companies are finding themselves clinging to important sales and marketing tools in order to help run their businesses more effectively.
Although COVID-19 has resulted in economic shock, higher unemployment and business shutdowns there have been many innovative solutions created by businesses in order to keep their operations running as smoothly and as efficiently as possible. One way COVID-19 has impacted consumer behavior is by the rise of food delivery services.
With people stuck at home during the start of the COVID-19 outbreak, the demand of food delivery services has skyrocketed. Grocery delivery services such as Shipt, Instacart and Amazon Prime Now have seen massive growth and demand during COVID-19.
Many restaurants and bars have been forced to shut down their dine-in operations during COVID-19 but have been allowed to offer food pick up options. This at least allows their operations to continue providing services to their customers and even gives smaller operations the ability to remain in business all together.
This has increased the need for food delivery services such as UberEats and Doordash and provides a way for consumers to still enjoy the foods they are used to having. It has also provided more opportunities for food delivery workers and a further ability for them to make more money during these uncertain times.
One massive impact that has been caused by COVID-19 is the shortage of certain goods and services. The impact can often be seen at your local groceries toilet paper aisle. More people are flocking to grocery stores to prepare for uncertainty and as a result there have been massive shortages in certain food and supply essentials such as:
Suppliers are having trouble keeping up with the rise in demand for essential goods. As a result they are having to seriously restructure their supply chain operations and how they provide these goods and services to their customers during times of unprecedented demand.
Companies are learning now more than ever of the importance of having proper risk procedures in place and inventory management systems to help them adapt to a rapid rise in consumer demand.
With shrinking advertising budgets in the majority of marketing and advertising firms, it’s extremely important that companies effectively track and manage ad spend in every area of their business. The increased need for ad tracking has spawned a rise in need for tracking and advertising automation.
Software Tools such as Voluum allow you to accurately track, optimize and automate components of your advertising at scale. They allow countless integrations with other technologies which allow marketers to ensure their ad dollars are bringing in maximum revenue.
COVID-19 has woken up many marketers and caused them to carefully access their advertising channels and realign their focus in order to ensure they aren’t wasting money in places where they aren’t seeing positive conversions.
It’s making them more conscious of their spending decisions and has realigned their focus back to providing value to the consumer.
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The economic impact of COVID-19 has evolved the modern day consumer into a cost-conscious, value driven persona. Marketing companies around the world are seriously restrategizing how they offer their products and services to their consumers relative to their competitors.
COVID-19 has also skyrocketed e-commerce sales and it’s more than obvious that Amazon is leading the race. Other e-commerce giants such as Alibaba, Walmart and eBay are also changing their value driven marketing in order to accommodate the shopping shifts caused by COVID.
COVID-19 has caused consumers to consider other alternatives that offer more value for their money. With the unemployment rate hovering around 10% throughout COVID, many families have no choice but to look for cheaper alternatives and products and services that offer larger discounts.
People have to make their dollars stretch further than ever before and once government stimulus is exhausted some consumers will have to get even more crafty with the way they spend money.
Some people argue that COVID-19 has caused a massive change in the exclusivity or products. Products which previously held allure, popularity and inclusivity are beginning to see struggles in performance.
One industry which has been especially impacted by COVID-19 is the car industry. As consumer spending has dramatically dropped during the pandemic people are not shopping for new vehicles like they used to.
This has caused a major shift in the financing and marketing tactics used by car dealerships. In order to adequately compete for business, car dealerships are offering wild incentives in order to get people in the door. Thing such as:
COVID has caused the marketing landscape to shift in order to value the consumer more than ever before. There is no telling how marketing will continue to change as COVID continues it’s spread going into the future.