The logical tendency in this situation would be to redistribute the “conventional” investment destined to attracting other channels more conducive to engagement and branding , such as, for example, content generation , public relations and media management. social . In short, it is about “protecting yourself” against the coming storm and taking advantage to improve business areas especially linked to operations and customer service.
Given this situation that we are facing, the team of The Social Media Family wanted to know, first hand, how restrictions are affecting our sector, more specifically to the advertising investment and marketing strategies of organizations.
HOW DO ADVERSE SITUATIONS AFFECT?
Before the Coronavirus will catch us fully in Spain, forcing us to help #YoMeQuedoEnCasa as much as possible , we had the pleasure of being sponsors of the 47th La Latina Valley Debate for CMOs, where different professionals from the sector debated the situations Adverse marketing has to deal with , like the one that affects us today: the Coronavirus .
In the case of the current situation regarding COVID-19 , it must be borne in mind that health is a very delicate issue; however marketing can use certain avenues for profit without the public considering that we are taking advantage of the situation.
Here are some of the main conclusions that we can draw from this debate:
In this adverse situation, you can act in two different ways: use the “stage” to get the most out of it or stay on the sidelines.
The marketing does not seek to take advantage of the Coronavirus but take into account the positive data generated torque brand.
Although traditional media have lost share, they are still present in marketing . But with the arrival of the Coronavirus we must bet on digital media since they are cheaper and allow reaching a larger group of potential customers through segmentation.
It is important to know how to reach the digital audience and make the most of it through social networks and interaction with the community.
The branding takes a special importance because it is a good time to try to reach a wider audience.
It is also a good time to bet on Content Marketin g , generating quality content and interest for clients in the sector through blogs or press channels.
TYPES OF CAMPAIGNS IN CRISIS SITUATIONS SUCH AS THE CORONAVIRUS
During these days we have attended, fundamentally, two types of campaigns: what we could classify as cause marketing (marketing with cause) and those linked to Corporate Social Responsibility (CSR).
The former are short-term oriented and based on “opportunism”. They are characterized by being aggressive offers, using keywords related to the disease as a claim (Coronavirus, COVID-19 , quarantine …). While the second, are actions that seek to offer solutions to a previously unknown situation, such as, for example: the case of Microsoft , which has decided to make its teleconferencing services free of charge for the next six months.
Or the case of different telephone companies such as Telefónica or Vodafone, which have decided to give away gigabytes in those autonomous communities that have been most affected.
The Corporate Social Responsibility (also known as Corporate or CSR ) is a distance race, whose value goes beyond the “flash sale”, increasing brand awareness and linking with positive values. All this ends up impacting in the medium term the reputation of the organization and, as we all know, this in turn in its economic results, because what percentage of companies that are going to benefit these days from the services of Microsoft won’t end up hiring him for good?
FUTURE FORECASTS OF ADVERTISING SPENDING AFTER THE CORONAVIRUS
Despite the fact that #YoMeQuedoEnCasa is being complied with in practically all of Spain as far as possible, there is much uncertainty even about how far the Coronavirus can expand . Portals such as emarketer have prepared some updates regarding advertising spending forecasts globally, after the impact of COVID-19:
In 2020, total spending on media advertising worldwide is expected to reach around 643 billion euros, implying an increase of 7% since 2019. This figure is a decrease from the previous forecast made by emarketer, where they expected that global advertising spending increased by 7.4% this year.
This downward revision is mainly due to China, epicenter of COVID-19 . The first case was discovered there in late December 2019, so there has been more time to track the impact of the virus on the country’s advertising market. This year, China’s advertising spending is expected to reach $ 113.7 billion (€ 105 million), well below the estimate of the expected € 112 million. China is the second largest advertising market in the world after the United States, so a reduction in estimates would lower the global forecast.
Some of the sectors that have been hit hardest by the impact of the coronavirus are travel and tourism, and it is still early to determine what the impact will be on the global economy in the long term.
It is true that the recent blows in the stock market of the COVID -19 crisis could bring us closer to an economic slowdown, but it is important to consider the case of China, where it seems that the worst of the outbreak has already passed and there are early signs of a possible economic change.