1. Other Companies Will be Reducing Their Marketing Budget
2. Prioritize Long-Term Growth Over Short-Term Profits
PPC will likely decrease in cost as other companies reduce their marketing budgets to protect their short-term profits. As a noteworthy percentage of companies reduce their marketing budget by 50% or even stop it completely, PPC may become more affordable than ever. This is a great opportunity to take advantage of falling costs and allow your dollar to go even further in the digital landscape. It’s certainly tempting to join the ranks of businesses that are focused on short-term stability, but we at RYNO are confident that the best investment in your long-term success is ramping up your focus on digital marketing at this time.
3. Online Spending Will Increase
This is a no-brainer. In fact, it’s already happening. As more of the population stays indoors to avoid being exposed to the virus, it only makes sense that spending habits will shift strongly in favor of digital e-commerce. We can see historical evidence of this happening by comparing today with the online spending habits of South Korea during the MERS outbreak. Lotte Mart online sales were up 27%, during the MERS outbreak, and E-Mart and Home Plus reported online sales increases of 63.1% and 48.1%, respectively. It cannot be understated how important it is to increase your focus and marketing where the attention of your potential customers will be, and for the foreseeable future this will be almost exclusively online.
4. E-Commerce Will Likely Continue to Grow
While many are already familiar with the convenience and utility of shopping online, this will be a time where more customer favor online shopping over traditional brick and mortar to avoid exposure to the virus. This can create a habit of convenience that will potentially last much longer than the outbreak or a recession, so keeping your online presence strong during this time is a smarter bet than reducing it.
It’s easy to get caught up in the news of the moment, but by looking into the past we can see how similar market situations were handled, learning which approaches were effective, and which were not. The evidence is overwhelmingly in favor of companies that didn’t reduce their online presence, but increased their digital marketing spend during both the 2003 SARS epidemic as well as the 2008 recession.
5. Competitors Will Be Relinquishing Territory
Think about it. This is a brilliant opportunity for your company to expand its position in your targeted markets, and perhaps beyond. Companies taking the conventional B2B advice of reducing “overhead” expenses like marketing will be weakening their brand during this time, allowing you to pounce and strengthen your visibility and brand by going after their market share—likely a long-lasting effect of increasing your online presence now.
6. The Majority of the American Population is Staying Indoors
Not only in America but globally, we’re witnessing a mass movement to stay indoors as much of the day as possible to reduce being exposed to or spreading the virus. Online marketing will be more valuable—not less—as internet usage will increase with people staying inside and spending less time outside. Shift of consumer exposure from billboards and other physical mediums to the internet will become more prevalent. Delivery, home comfort, and other services that meet a demand for consumers to not need to travel will be incredibly valuable.
Trades will be more important than ever, as more people stay indoors and require working home comfort systems (heating and cooling, plumbing, electrical). This means that companies in the trades are going to be in demand, as indoor comfort will become a premium. Air conditioners being turned on for the first time may need repairs and will be running all day long. In colder climates, furnaces may be running 24/7, meaning more potential service calls. Indoor air quality products are already seeing an increase in demand, as homeowners look for ways to protect themselves and their families from the spread of disease in their residence. It only makes sense to go full throttle right now and make your company the one they call when they are looking for a trusted brand to rely on for indoor comfort.
7. Strengthen Your Position and Maintain Online Presence
It simply isn’t the time to decrease your online presence. By doing so, you may lose ground and positional certainty for your brand. Low online presence will weaken your position when the outbreak dies down, creating an uphill battle when the companies that reduced their marketing spend decide to increase their budgets around the same time. This is a chance for you to strengthen your brand and gives you a window to gain reputation during a time of crisis. A customer that trusts you now will likely trust you in the future.
This isn’t the time to shy away from digital marketing. We have history and expertise on our side and want to ensure you’re aware of the opportunity that lies before you.
Now is the moment to be bold, and charge ahead with RYNO.