How Covid-19 has impacted each of these stakeholders- Owners, Operators, Advertisers and Audience?

 

The coronavirus (COVID-19) outbreak is causing widespread concern and economic hardship for consumers, businesses and communities across the globe. Wherever consumer behaviour has shifted, advertising spend has adjusted in response. It makes little sense for advertisers to spend on media that have no audience. As confinement measures were introduced around the world, out-of-home and cinema advertising shrank almost instantly; print advertising also fell.

 

Meanwhile, in-home media usage went up. TV viewership has climbed, but digital consumption has increased even more: use of social platforms and streaming services have risen almost everywhere; gaming has also grown dramatically.

 

Advertisers have adapted by following consumers, which means prioritizing digital advertising. The online environment is favourable for “direct response” campaigns – those encouraging quick purchases by consumers – an attractive proposition for brands spending cautiously and looking to drive sales. In the first quarter, Facebook and Google saw better than anticipated first quarter revenues.

 

Brands advertise to raise awareness, increase sales and build loyalty, using media appropriate to each objective. In general, small- and medium-sized enterprises are more dependent on channels that drive customer engagement. Global brands, on the other hand, run multiple campaigns, including values-based marketing that builds association with consumers’ identities.

 

The pandemic has caused advertisers of all sizes to rethink the type of campaigns they should run. For many, this means focusing spending: in a survey, lifestyle advertisers reported that acquiring customers is now their priority, and other consumer categories are also adapting their marketing strategies. Media – such as TV – that work well for identity-based marketing may not be the priority in the near-term. The pandemic is likely to shape the advertising industry in the long-term. Businesses are prioritizing survival for now, but in the future will have to find new ways of brand-building. The change in people’s media and consumption habits will force a rethink of how best to do so.