August 7, 2020.
Written by Sharoon Emmanuel
A recent analysis of retail and online brands reveals that companies that reduced their marketing spend and effort during COVID-19 are now seeing negative impacts in revenue. Those who stayed on course observed initial dip but eventually saw promising results and unprecedented growth.
If we look at industry trends, wholesale and retail channels are underperforming whereas viable online sales growth is being observed considering the exercise of social distancing measures at scale. With the decrease in spending by consumers on travel and dine-in restaurants in light of Covid 19, reasonable discounts and ad placements across digital channels has also become the new way to market essentials across industries.
Impact of Covid 19 Across the Ecommerce Spectrum
Amazon, Walmart & Coronavirus
Since the outbreak of the novel coronavirus in 2020, ecommerce experienced online sales growth of about 76%. As part of Walmart’s quest to compete with Amazon, the ecommerce company plans to launch Walmart+, an elite service priced at $98/year that would include same-day shipping and grocery delivery.
Ecommerce Up by 18%, Physical Stores Down by 14%
A recent eMarketer survey reveals how the coronavirus pandemic has triggered the tilt towards ecommerce in 2020. Observing a significant 18% growth, ecommerce has somewhat replaced brick-and-mortar stores.
Another important thing to mention here is that digital purchasing power has increased by 20%. Varying vastly according to industry, computers 40 %, fitness equipment 55%, non-perishables by 87%, virus protection products by 807% and over-the-counter drugs by 217% is a clear indication that people are inclined towards “Not Shopping from the Shop” i.e. making digital purchases.
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Increase in Ecommerce Paid Search
COVID-19 has changed the entire ecommerce landscape. With consumers’ purchasing behaviors changing, it has become critical for businesses to conduct an in-depth analysis of the emerging trends according to their industry to redefine advertising to serve people digitally. Those who acted in time are now seeing gradual improvement in sales whereas for others who halted paid advertising amid Covid 19 are finding it hard to recover.
Google My Business Updates
In April 2020, GMB released an option for businesses to post updates related to COVID-19. One should bear in mind that these updates may replace standard Google Posts, which could impact one’s local SEO strategy one way or the other. Earlier in March, Google stopped showing new business reviews taking into account how businesses are functioning during this COVID 19 crisis, for better or for worse.
Facebook Launches Messenger Rooms to Compete with Zoom
Facebook’s new Messenger Rooms are quite similar to the functions Zoom perform but the former focuses on personal meetings rather than professional. As of now, rooms can be created for free within Messenger, however, the company plans to expand it to Instagram and WhatsApp as well. With almost 44% adults connecting on messenger for communication, the new Room concept is sure to be a hit. Considering its ease, businesses should be leveraging this new medium to connect and interact with customers for a more personalized service.
Also, Facebook plans to add augmented reality (AR) features from Messenger into their new app to allow users to use filters and immersive 360-degree backgrounds to ensure an engaging and interactive experience.
Keynotes for Brands to Ensure Success Amid the Coronavirus Pandemic
Determining how to proceed with marketing activities based on events and keeping essentials in stock is a must in the to-do lists of businesses as the coronavirus outbreak continues. With most consumers exercising preventive measures during the virus spread, switching your ad budget to video platforms such as TV and even YouTube could prove to be a good idea.
To support their brand’s reputation, businesses should focus on transparency, delivery delays and out-of-stock items. Also, they should train their agents on handling sensitive matters. Making sure that your business’s display advertising game is up to par and maintaining the blog for updates are also points that you might want to take into account to ensure overall success.
Originally Published July 22, 2020 02:30 PM, Updated July 22, 2020.