COVID:19 Affects on Media spend

Consider this: A majority of buy-side decision makers believe that the novel coronavirus will have a greater impact on ad spend than the 2008-2009 financial crisis. For reference, marketing budgets were sliced by a mean of 13 percent within the aftermath of the recession, with some industries suffering far more than others.

If this dire situation has left you unsure of what to try and do next, you’re not alone. Based on a survey , 67 percent of decision makers are unsure the way to adjust their marketing budget in Q3 and Q4. Each business will need to find new ways to succeed in customers and optimize their campaigns, as previous tried-and-true methods may fall on deaf ears as consumer needs still shift.

However, don’t pack up your campaigns – research has shown that it could take up to 5 years for your brand to recover. Instead, use this point as a chance to refine your tactics, optimize spending, and make the foremost impactful messaging possible. Let’s take a glance at how you'll start today by answering two pressing questions put forth by marketers.

How do I convince my CFO/ internal stakeholders to stay media turned on?

The answer to the present question goes to vary counting on how the COVID-19 epidemic uniquely affects your organization. Are you experiencing a greater level of demand, less demand, or stable demand for your offerings? It’s important to match where you were before the outbreak began and compare it to your current trajectory.

This isn’t only about navigating the initial shock of COVID-19 – it’s about preparing your organization for an uncertain future by monitoring customer demands every step of the way, then responding accordingly. For instance, imagine that you simply are a towel manufacturer – your sales are steady, and your team would like to hunker down and ride the wave since your market position seems safe.

However, your leadership is totally missing massive fluctuations in brand loyalty. The explanation that your products are selling out is just overwhelming demand, and your once loyal customers are starting to buy from your competitor out necessarily . How are you able to ensure they're going to return to your brand when the overinflated demand begins to subside?

It’s important to line specific goals and KPIs regarding a spread of metrics and share them together with your team. additionally to the present , return to your pre-COVID KPIs and confirm they're still attainable – many businesses will got to begin tempering their expectations, since marketing teams will already be pushed to their limit with this uncertain business environment.

For businesses using platforms, we propose allocating KPIs across several fields including Media Type, Platform, Program, Tactics, and/or Vehicle. In addition to the present , use Goal Seek to input a conversion target, and you'll receive the estimated budget required to encourage those conversions. This could be used for approximating how budget cuts may affect your marketing performance.

Are today’s historical insights still applicable, or are they not relevant thanks to changes in consumer behavior?

Not necessarily. Your historical data will likely be better than nothing, but it’s not getting to offer you actionable insights that you simply can have full confidence in. For instance, you'll be ready to estimate the demand for a particular brand of beer – but it’s far more difficult to estimate how likely it's for a restaurant to get several kegs of your beer.

With access to the proper technology, however, you'll remove that uncertainty. Use a marketing analytics platform that has some quite learning and forgetting framework. Our platform uses Bayesian Learning and Forgetting to recollect relevant information, forget irrelevant information, and constantly learn and course-correct from new customer insights. This would assist you determine whether you’re investing your marketing spend within the most impactful way given changing conditions.

Learning and forgetting algorithms won’t only serve you well during the COVID-19 outbreak, it'll show many utility in any case where consumer behavior shifts, like widespread natural disasters or economic recessions. In these situations, you'll without a doubt got to adapt ad placements, create new creative assets, and orchestrate new marketing messages to maximise performance. An advanced marketing analytics solution can assist you attain this information in real-time going forward.

Final Thoughts

The novel coronavirus outbreak is sure to transform our marketing landscape for the foreseeable future. Marketing teams cannot navigate this changing market environment with little to no data-driven guidance, and that they won't realize the complete potential of their campaigns relying solely on historical data. By investing in a complicated marketing analytics solution that features learning and forgetting capabilities, your team will have the chance to refine your marketing strategy for a variety of unpredictable events within the coming years.

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