Will they, or won’t they? None of us knows how many consumers will return to in-store shopping once the social distancing mandates are lifted or whether digital video ads will drive revenue. We do know that consumers have changed shopping behaviors because of the crisis and digital video ads have helped to increase awareness of local businesses.
Consumers Want More Digitally Delivered Services
Earlier this month, McKinsey reported that 39% of U.S. consumers expect our economy to rebound in two to three months. For now, consumers have cut back on their discretionary spending. But they’re spending more on groceries and in-home entertainment, and for some marketers, digital video ads drive revenue.
Now that consumers have experienced the time-saving benefits of some of the COVID-19 enforced behaviors, they might not be quick to give them up. The efficiency of telemedicine when a parent is dealing with a sick child is a good example. Bundling up a sick child, driving them to the doctor’s office and waiting to be seen is never a great experience. Parents are likely to demand more telemedicine capabilities from their health care professionals. Consumers are also embracing online learning and on-demand fitness.
McKinsey research indicates that higher income and younger consumers are most likely to increase their online engagement with your clients long after the social distance mandate ends.
Digital Video Ads Will Drive Revenue
To maintain engagement, your clients must investment in advertising that will capture consumer attention, especially if most of us continue to stay close to home in the next few months. eMarketer reports that digital video ads were poised to jump at least 26% in 2020. As the pandemic spreads, those projections have been adjusted. Analysts now expect a range from a 1.3% to a 20% annualized drop in Q2. For the first half of the year, the impact could fall anywhere from a 7.8% increase to a 5.2% drop.
Not surprisingly, travel and event promoters will be pulling back on marketing at least for the next couple of months. However, eMarketer analysts point out that digital video ads will drive revenue for businesses in other sectors as they appeal to multiple senses and can be a great way for your clients to connect with clients during a time when radio listening and out-of-home exposures have fallen. In addition, digital video advertising will be more affordable now, and in the immediate future, because so much inventory has become available.
Don’t let your clients miss out on the opportunity to strengthen engagement with consumers who are likely to spend more money in the online retail channel in the next few months. To learn which consumers respond well to digital video, check out the AudienceSCAN profiles available on AdMall from SalesFuel.