Coronavirus Impact on Digital Marketing, eCommerce & Advertising

The ongoing coronavirus outbreak is affecting every part of our life, from where we travel to how we spend our time to our priorities and how much money we spend. While we are very lucky here in WA our friends on the East coast are still feeling the impact. 

Of course, this has ramifications for marketing and advertising, as well as a number of other businesses including travel, entertainment, and fast-moving consumer products. We have seen and been helping ecommerce stores put their focus into online sales and advertising. Be Media specialises in marketing ecommerce brands.

The pandemic’s impact on clothing stores and companies

In light of COVID-19, several clothing merchants have been compelled to reconsider their strategies. The gap is to quadruple its online business by the end of 2023 and is investing $140 million to do it. Simultaneously, the retail behemoth is closing nearly 30% of its North American locations.

Gap, the world’s biggest casual clothing brand (according to Statista), expects digital to account for 50% of its sales this year. In 2020, eCommerce contributed 45 percent of Gap’s sales, up from 25% in 2019. Online sales for Gap were up 54% in 2020, while total sales declined 15.8%.

Kohl’s and Nordstrom Inc., both omnichannel stores, had strong online growth last year. Kohl’s internet sales increased by 41% in 2020, with 40% of online orders being picked up in-store. In 2020, eCommerce contributed 55% of Nordstrom Inc.’s sales, up from 33% in 2019. In 2019, 30% of online orders were picked up in-store, up from 10% in 2019.

physical clothing stores are empty

Impact on eCommerce

The new virus has produced economic disturbances, which are evident in eCommerce. In most industries, lower values and more market volatility are typical occurrences. However, in a time when many industries are failing, there are possibilities for others to thrive. eCommerce is one sector of the industry that is assisting economies in staying afloat. 

The epidemic of the Coronavirus has pushed eCommerce to the forefront of retail. COVID-19 has impacted every sector, for better or ill. Overall, eCommerce appears to be doing well during the Coronavirus. Customers who are unable to visit a physical store can purchase online instead. But, as is often the case, nothing is as easy as it appears.

The epidemic also served as a reminder of the value of digital transformation. Retailers who have a solid eCommerce strategy are more flexible than their conventional competitors, giving them a higher chance of surviving supply chain shocks.

“The past 14 months has seen ecommerce take massive leaps forward becoming the mainstream way for businesses impacted by lockedowns and restrictions to still sell their products. One thing COVID did do for the economy was help thousands of businesses become more active online, pushing online sales to records never before seen”.

Jordan Fogarty

CEO, Be Media

Digital marketing impact 

Digital advertising now accounts for 40.7 % of UK marketing expenditure, up 18.5 % since 2015, according to Scopen’s Agency Scope UK 2021/22 study, which was produced in partnership with WARC. Above-the-line and below-the-line marketing efforts are divided, with above-the-line activities accounting for 37.5 % and below-the-line activities accounting for 37.5 % of marketing cost.

Following a robust year and a half of digital growth in the nation, the analysis revealed that UK digital marketing spending is greater than the average 35.7 percent share of budgets reported across ten other major countries used as a comparison.

When it comes to focusing on specific marketing channels like digital, six out of ten marketers prefer to engage with professional firms. The remaining four out of ten respondents say they work with an integrated agency to help them achieve outcomes across a broader, more complete range of marketing disciplines. If you need a quick recap of what SEO is and how it plays into online marketing read here.

In digital marketing, SEO (Search Engine Optimization) is of a crucial impact. SEO is a digital marketing strategy that focuses on your website’s presence in search results on search engines like Google. There are many SEO agencies all over the world if you are looking to learn more and look forward to work in digital marketing, and the one worth recommendation is the SEO Sydney agency.

Coronavirus’s Impact on Logical Media Group’s E-Commerce Clients

Panic and concern have dominated the economic tone of the epidemic thus far, but there has been a good side to the coin for e-commerce firms. After reviewing performance figures from March and April, Logical has seen a very positive impact on our e-commerce clients.  

In the Grocery & Gourmet category, we’ve seen a four-digit (2,000 percent more) increase in revenue from Google Advertising. Food that could be delivered right to your door was always going to be a big winner in this contest.

Snapchat has seen a surge in income.

The social media network produced $982 million in income in the second quarter of 2021, up 116 percent year over year, according to Snapchat’s financial filings. Daily Active Users increased by 23% to 293 million, a 55 million increase, including gains in North America, Europe, and the Rest of the World.

This outstanding result indicates that Snapchat’s recent success during the epidemic may be here to stay in the long run, as its user base (usually a youthful cohort) continues to engage with the augmented reality platform through a growing diversity of content.

Snap’s Discover Channels, which had a record 117 new launches globally in the three months leading up to June 2021, are also on the increase. Perhaps most notably, its Spotlight tab – Snapchat’s answer to TikTok – saw a 49 percent increase in Daily Active Users, a more than threefold increase in daily short-form video content submissions, and an increase in daily time spent per user for 60%.

The business claims it wants to reach 301 million DAUs in Q3 2021, which would represent a 21% increase year over year. It also anticipates revenue to rise by 58 percent to 60 percent compared to Q3 2020, putting it beyond the $1 billion marks.

snapchats userbase increased

Revenue from Facebook advertising is rising 56% year over year

According to Facebook’s Q2 2021 results released on July 28th, advertising income increased 56 percent year over year in the three months ending June 30th, hitting $28.5 billion. Following a rise in advertising expenditure since late 2020, once pandemic fear had subsided, the company’s ad revenue growth is showing no signs of slowing. It increased by 46% in the first quarter of 2021, but growth slowed in the fourth quarter of 2020.

Despite this, DAUs, particularly in Europe and the United States, have remained stable. According to Social Media Today, while total DAUs increased by 7% this quarter, the majority of the 30 million new users come from the APAC area, with a lesser amount from the ROW.

According to the statistics, DAUs in the US has been stable for some time, remaining at 195 million since Q4 2020 and equal pre-pandemic levels in Q1 2019. During the initial peak of the Covid crisis in Q2 and Q3 2020, DAUs in the United States grew marginally to 198 and 196 million, respectively.

Europe has a similar trend, with 307 million DAUs, decreasing from 308-309 million in late 2020 and the first quarter of 2021. However, Facebook ads have retained a few million more DAUs in this region than before the epidemic (305 million in Q1 2020).

According to Andrew Hutchinson of Social Media Today, because Facebook’s revenues are more reliant on its core western countries, this might be “an essential factor to monitor.” However, it’s worth noting that users in Europe and the United States are increasingly using other Facebook family applications, implying that they’re just reallocating their social media time to apps like WhatsApp.

amazon adapted its delivery model

Amazon throughout COVID-19

Amazon was expected to generate $81.2 billion in revenue in Q2 2020 prior to COVID-19. Because of the epidemic, Amazon has set aside $4 billion to keep customers and workers safe, as well as enhance delivery after prioritizing only critical products.

Revenues for the eCommerce juggernaut were $88.9 billion in the second quarter of 2020, up 40% year over year. As a consequence of Amazon’s 160 percent increase in grocery capacity in response to the pandemic, supermarket sales increased year over year.

In the UK, Amazon accounted for 35% of all online purchases during the lockdown period, with one-fifth of poll respondents indicating they are more likely to buy from Amazon now that the epidemic has passed. The top three main online purchasing motivations for this set of consumers were free delivery, availability, and pricing.

COVID-19 has had a global impact on the industry. Customers appeared to be attempting to reshape themselves in the face of the epidemic. Customers’ purchasing habits have altered, but we can’t claim that this pandemic has had a detrimental influence on the economy.

This virus has brought both positive and negative impacts on many businesses, which complicated the jobs of many employees, however, it made many people acquire new working skills.

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