The second part of this series explores the evolving landscape of advertising and the impact on brands and media buyers. Read on for insights on how advertisers can re-design their #strategy to continue driving results!
2. Global ad spending is expected
to reduce by 8.1%, bringing the
total loss to $96.4 billion.
Ads expenditure on traditional
media channels saw a sharp
decline. In particular, cinema to
fall by 31.6% and out of home
by -21.7%.
Overall advertising spend to decline but digital advertising
stays resilient
H O W I S T H E I N D U S T R Y R E A C T I N G ?
Source: Visual Capitalist
KEYHOLE INSIGHTS
3. *CPC = Cost-per-click
Source: WARC data
Brands have benefited from the lower
CPC* due to the surge in the number of
clicks.
For instance, return on adspend on
Amazon Sponsored products increased
by almost 7 times during the pandemic.
KEYHOLE INSIGHTS
However, surge in online traffic has also contributed
to higher return on digital advertising spends
4. 61% of
consumers used
digital channels
to decide where
to shop, including
social media,
online ads or
proactively
searching.
Keep advertising, but redesign your campaigns
You want to stay at the top of mind of your consumers even during time of crisis.
Take advantage of online channels
The shift to online channels is not temporary.
Most consumers intend to continue shopping online even
when the crisis subsides.
Brands could look at focusing on relevant channels:
1
Social media
platforms
Gaming
platforms
Streaming
services
Source: McKinsey
W H A T S H O U L D Y O U D O ?
KEYHOLE INSIGHTS
5. What had worked previously, might not today.
Due to a change in consumers' routine and habits, certain data and information that have
been collected previously is now irrelevant.
Restructure ads placements and reevaluate key metrics for campaign performance.
Ads should be optimized for desktop users rather than just mobile, as more people
continue to work from home.
Relook at the timing for social posts as social media engagements have also evolved.
Examine your data & collect new information
Source: McKinsey
W H A T S H O U L D Y O U D O ?
KEYHOLE INSIGHTS
Optimize your marketing efforts with relevant data2
6. As more brands temporarily halt their campaigns to reduce
marketing costs, the cost of advertising will fall.
Hence, for the same amount of advertising budget, the
exposure, reach and top-of-mind share will increase.
More than half of big brands
expect to spend less on
advertisements in 2020 as
compared to 2019.
Monitor competition and scale accordingly3
Stay on top of changes and be quick to adapt
W H A T S H O U L D Y O U D O ?
KEYHOLE INSIGHTS
Being well informed and having a flexible approach allows you to be competitive.
Source: iAB