By Adeel Ahmad & Monique Ahmad
Covid-19 has not only affected where we work but has had an immense effect on how businesses communicate and market to their customers.
Small businesses aren’t the only ones affected. Large corporations like Microsoft, Nike, and Apple are also having to make budget cuts and rethink their business strategy. The difference is large businesses will survive this crisis as most of them have been using digital marketing to promote their business. Small businesses that have a minimal level of brand awareness will face greater losses.
Businesses that have been taking their digital presence seriously are greatly benefiting from this now. Those that haven’t will struggle more unless they push their efforts in this direction.
Throughout history, we have seen that marketing budgets are amongst the first to be cut during financial crises. According to Forbes.com, we saw a 13% drop in ad expenditure during the 2008 recession. Marketing and ad promotions may seem like unnecessary spend in difficult times, but with digital marketing, you can find inexpensive ways to promote your brand especially during this time.
McGraw-Hill Research’s Laboratory of Advertising Performance found that organizations that cut their budget during the 1891–1982 recession periods faced losses in the long run as compared to companies that focused on advertising. Again, we see that marketing in financially stressful times has great benefits for the longevity of a business.
Companies shouldn’t cut their marketing budget, instead, they should turn their efforts towards it. For those businesses that don’t already have a digital presence. It is not too late. You can begin your digital marketing journey and come out of this lock-down strong. Begin by using your resources that have more time to conduct market research and create an informed plan.
Not convinced that marketing is the right way to go about the COVID-19 lock-down?
With the majority of the world practicing social distancing, most physical stores have closed. Companies that already had e-businesses have not been hit so hard. Many people have more time in their hands and are spending it on their phones or computers. Twitter recently stated that its total number of daily users has increased by 23 percent. This is an opportunity for marketers that needs to be filled.
To add an even greater incentive, advertising costs have dropped. Advertisers have cut their ad costs and therefore, businesses can get ads at lower costs. Take advantage of this opportunity to connect with your customers through advertising!
This is the golden time for businesses to market themselves. As businesses, we need to prepare ourselves for the changes that will inevitably take place after this pandemic. The way we conduct business and relate to our customers will no longer be the same. Spend time understanding how digital marketing can keep you connected with your customers. Not only will you come out of this situation strongly, but you’ll be prepared to cope with similar situations in the future.