As people stay home for the next several weeks, they will need basic supplies. Marketers can shift advertising to digital messaging to encourage consumers to shop online for necessities and have them delivered. If reps can convince clients to make the change, they may be able to ease some of the economic pain that media companies are feeling.
While marketers are pulling back on branded content and promotions that push travel, events or other activities that encourage consumers to gather in public places, media companies can encourage other clients to start advertising. Increases in ads from grocery stores and delivery services have been noticeable. Media companies might also be able to generate ad revenue from direct-to-consumer companies that are promoting services like online video or educational modules, online fitness programs and telemedicine. Some of these vendors may want to pitch a “fremium” model to introduce themselves to consumers during these days of family isolation as consumers stay home.
Digital is Pulling Ahead in Global Ad Market
Before the virus dented the ad market, WARC made lofty projections about the traditional ad market on a global basis. In U.S. dollars, here are the anticipated spending volumes and changes in percentages from the previous year:
- TV $192.6 billion (+2.5%)
- OOH $42.5 (+5.9%)
- Newspapers $26.6 (-5.9%)
- Radio $32.8 (+1.8%)
- Magazines $15.2 (-5.6%)
- Cinema $3.5 (+5.0%)
Altogether, the traditional ad market had been expected to increase 1.5% to $324.2 billion in 2020.
If traditional media does experience any growth this year, it will be overshadowed by the jump in digital advertising. The expected growth rate of 13% will bring the digital ad market to $334.5 billion. A few key companies control about 76% of digital revenue as detailed below:
- Alphabet (not counting Google or YouTube) — $22.7 (billion)
- Google — $107.8
- Facebook — $82.9
- YouTube — $18.5
- Amazon — $17.1
- Twitter — $3.3
- Snapchat — $2.3
There's no denying that the digital ad market is competitive, but you can increase your ad sales by reminding your clients of the value of the local content your media presents. Consumers are paying attention to local news now more than ever.
Marketers to Shift Advertising As People Stay Home
It’s too soon to tell how significant the impact of COVID-19 will be to the economy and the ad market. If several large upcoming events, such as the Summer Olympics, are cancelled, the damage will continue through the summer.
Savvy marketers will shift advertising to keep consumers’ spirits high and to promote positivity as we pull together to fight a common enemy. Ad money is still available in the local market. Talk with your clients about new products or services they can roll out in the virtual space and encourage them to promote what they are doing to support their employees and the community.
For information on consumers who are influenced by cause marketing, check out the AudienceSCAN profiles available at AdMall by SalesFuel.