Coronavirus has taken the world over with cases rising exponentially everyday. As the world goes into lockdowns and social distancing policies are put into place, the economy is suffering and many businesses are having to shut down.
So what does this current situation mean for marketers?
Business as Usual
Most economic forecasts paint a very gloom picture. In China, the collapse of activity because of the lockdown negatively affected almost every sector, with retail sector plunging by almost 25% when compared to 2019.
In the US, different forecasts give different conclusions but the overall picture is that the worst case scenario would be extremely bad. Some of the best case scenarios, where the virus is controlled by summer, expect the us economy to shrink by 5% come summer time, and gdp growth for the year to be a measly 0.4%. According to the Treasury Secretary, Steven Mnuchin, the worst case scenario where no action is taken could result in a 20% unemployment rate, something that could be unprecedented.
So what does this all mean?
It means that you should prepare for a year of no business as usual.
Organic Traffic is Down
According to Uber Suggest, the Free SEO tool, Organic traffic in most industries has gone down.
For the news industry or financial space, your traffic is probably reaching new levels.
And if you are in the travel industry, organic traffic virtually disappeared.
All in all organic traffic seems to be trending down as people are worried about the virus.
Pay per Click and Conversions
According to Uber Suggest, Online Conversions have gone down overall, except for industries like news and online retail of essential goods.
From a PPC perspective, although overall cost per click has stayed the same, the cost per conversion has gone up for most industries.
Less Competition in Digital
As the pandemic spreads you should expect to see less competition. As people prepare for a recession many businesses will probably stop their digital marketing. What this means for the marketers left standing is unsure just yet, but it will probably be easier and faster to get results, and in some cases, you’ll be able to get deals, such as a potential reduction in pay-per-click advertising.
“Be fearful when everybody is greedy, and greedy when everyone is fearful”
Hopefully Coronavirus will pass soon, in the mean time please make sure you follow the guidelines set forth by your national health agency and practice social distancing. In terms of marketing, if you have enough cash to safely float for the reminder of the year it might be a great time to doble down.