Google and Facebook See Ad Declines
Two of the biggest platforms for ads these days are Google and Facebook. They may operate in different spheres -- search results and a social media -- but these are two places where people tend to flock and they're the kings of online marketing. That's not going to change, but they are seeing a recent drop in ad spending as the COVID-19 pandemic continues to get worse by the day. That pandemic, which has caused many people to essentially shelter in place, has decimated a lot of industries and they're cutting ads as a result. There is also the thought that this pandemic, even after it ends, could lead to a global recession. Many of the economic gains of the last few years are already gone.
What Industries Are Hit Hardest?
Not everyone is seeing a reduction in sales and income. Amazon, for instance, has been so swamped that many products are out of stock and shipping on some items is being delayed because Amazon doesn't have enough workers to keep up with the demand. They're hiring more people and trying to prioritize orders sent to those in need. Online shopping has actually soared lately, as we discussed last week, as people turn to the internet to get items that are sold out in their area or simply to shop from a smartphone so they do not have to encounter other people.
That said, some of the industries that are getting hit the hardest are no surprise. They include:
- Travel agents
- Retail outlets
In many cases, these industries just cannot sell anything. In a time of restricted travel, people are not going on vacation. Airlines are worrying about bankruptcy. In some places, car dealerships are closed except for their repair centers, not making any sales at all. Bars, restaurants and concert venues -- just to name a few examples -- have closed down completely in much of the country as people avoid crowded gatherings.
Online Usage Is Up
As noted, online shopping is spiking, but that's not all. The sheer amount of advertising opportunities have also increased as internet usage is way up. People who are not allowed to go to work or leave their homes are still going online, surfing social media, watching Netflix or Hulu, chatting with each other online, playing games and much more. They're consuming a ton of content because they suddenly feel like, outside of reading a book, they have few options.
Overall, this makes it a very complex time to run ads online. The opportunities are there. For some industries, this is actually a huge boom, as they see increased traffic and unprecedented sales. They have an incredible amount of potential customers and site traffic. In other industries, though, traffic hardly matters because they can't make sales, so they're cutting ads and trying to save what they can. What is the proper tactic for you and your marketing team at a time like this? At Content Customs, our professionals can help guide you to exactly the plan you need to put in place, and we can offer premium content, social media management services and everything else you need right now. Please call us today.