Published by Mancuso Media
Historically, Advertising During Weak Economies is the Right Choice
Amid growing concerns about an economic downturn triggered by the COVID-19 pandemic, many businesses are looking to cut costs, with the marketing budget often first to go. But we’ve done some research and have found there are actually great advantages to maintaining or in some cases increasing advertising spending during a weak economy.
How COVID-19 is Affecting TV and Video Streaming
As soon as social distancing measures were announced, streaming video was assumed to be one of the major beneficiaries, and indeed, streaming was up 26% in the U.S. for the two middle weeks of March. But traditional TV is also benefiting, up 18% for the week of March 16 compared to the previous week. People are watching more news and daytime TV, offsetting some of the lost viewership from canceled sports events and bringing in record viewers. When it comes to digital video, streaming is up, ad inventory is up, but advertisers aren’t spending, leaving a void to be filled.
Learn more about how the coronavirus is affecting TV and video streaming from eMarketer.
How COVID-19 Is Impacting Social Media Ad Rates and Engagement
The COVID-19 pandemic has driven down social media advertising rates globally, and it has also led to a decline in engagement with social ad campaigns, according to recent research from Social Bakers. For brands across the 18 industries examined, average global CPM in mid-March was down by more than half compared with its high in late November 2019. Average global CPC tells a similar story; it was down to $0.089 in mid-March, significantly below its previous 2020 low of $0.11 right after the new year. Engagement with social media advertising has also declined somewhat, possibly because audiences are turning to more organic content than paid.
All social media apps have seen increased usage and engagement during this time. Facebook reports time spent across all of its apps has increased 70% since the start of the crisis, and Live video views on Facebook and Instagram doubled in just one week. Influencer marketing platform Klear compared the week of March 15th to the previous week and found that users posted 6.1 Instagram Stories per day, on average, an increase of 15% week-over-week. Stories’ impressions also increased by 21% during that time. According to a survey of more than 25,000 consumers in 30 markets conducted from March 14-24, WhatsApp is the social media app that has experienced the greatest gains due to COVID-19, with an 40% increase in usage.
Stay abreast of current marketing trends with 3 articles handpicked by our team!