In January, news outlets taunted expectations of a nearly $400 billion increase in advertising and marketing spend in the U.S. Advertisers watched rates for Facebook and Google climb as the number of advertisers increased and users remained stagnant. Fast forward to April and those same outlets are revising their projections as advertisers pull back their marketing budgets amid escalating uncertainty about the future.
Twitter and the New York Times scaled back their projections to reflect a loss in ad revenue instead of their once expected gain. Although Facebook declined to share hard numbers, they confessed the declining ad spend was hitting their platforms hard. And with all major sports halted, including the 2020 Tokyo Olympics, television isn’t sure how their ad revenue will fall out either.
But it’s not all bad news!
Digital ad rates are typically purchased on an auction basis. As more businesses jump into digital marketing and are willing to spend more to reach their audience, the cost of digital advertising increases. As advertisers pull back, lowering or eliminating their digital ad spend altogether, marketers are seeing digital ad rates decline.
At the same time advertisers pull back their budgets, social media usage is climbing like never before. More people tune in to Twitter and Facebook to connect with friends and family and to keep track of the most recent news.
All this doom and gloom means if your company has the means to serve your clients or customers online or if you offer an essential service, now’s the prime time to jump into social media advertising. For companies who can’t provide service to their clients right now, digital ads offer an opportunity to stay top of mind with an encouraging message, interactive learning opportunity, or fun activity. Staying top of mind for your customers now, even with a low ad spend, can decrease the time it takes to resume business when the virus threat lifts.
Create a digital ad strategy
While rates may be low, advertising of any kind only makes sense when you have an ad strategy, which includes reasonable goals. Engagement of non-coronavirus content, both organic and paid, has declined along with ad rates. So temper your expectations. Walk through your goals, your budget, and your customer needs before creating digital content. And be prepared to run your ads for the long haul.
Use sound judgement
We all want our world to return to “normal” as soon as possible. When that happens, and whatever our new normal looks like, make sure your digital ads leave your company with a favorable impression with your customers and clients. Choose your words carefully. Don’t play on people’s fears or raise prices of essential items. In other words, be good people and do the right thing.
Even at good prices, digital ads cost money and time to set up. Use this opportunity to place your company ahead of others who aren’t advertising, but not at the expense of your company’s financial stability.
If you’re looking for help setting up digital ads, Google ads, or Facebook ads, we’re to help. Email us to set up a time to brainstorm your creative options, target audiences, budget and how we can help.