If there’s anything positive that can be said about the pandemic, it’s that there’s a lot of new business data to analyze. While some businesses have remained stagnant throughout, others have seen massive changes in innovation tactics to thrive. Everything from home working systems to quarantine measure adaptations. It’s no different for marketing and E-commerce businesses. Analyzing the effects of these changes shows some pretty interesting results. Here are a few that are important for the digital marketing industry.
A rise in online sales
Social distancing and quarantine measures have had an enormous impact on brick and mortar retail sales. People are more hesitant to leave their homes and go to a physical store, which has led to a dramatic drop in sales.
This hasn’t been an issue for online retail, which has been a booming day in and day out. Weekly revenue growth has seen an increase of around fifty per cent, while conversion rates are also up about eight per cent, compared to the same season a year ago. While most sales are still done in physical stores in some form, online retail makes up nearly twelve per cent of total sales, and it’s only projected to go up.
Increase demand for E-commerce
Because so many online sales are being made, the E-commerce business is booming as well. All of those products and materials need to be shipped over long distances, leading to increased traffic for delivery services. Online divisions of major retailers are looking to Amazon for their infrastructure and to help further increase sales.
While this may be good news for these retailers, the change has been a bit too rapid to keep up with. With such a massive number of orders, supply chains are stretched thin and there are shortages of key products. This is only exacerbated by a declining economy, which has halted production.
Uncertainty among retailers
Online retailers might be seeing a lot of growth right now, but the outcome of the situation is uncertain. The pandemic might be boosting E-commerce and retail numbers, but this shift in consumer trends might only be temporary.
Even though a large number of retailers are seeing good results, there’s no telling what the future could bring. If the economic downturn continues, consumers will be hesitant to order non-essential items and products. This is already happening, as the majority of increased sales are going to around a third of retailers, while the other two-thirds are stagnating.
Different retailers are taking different approaches to the pandemic situation. Some are using the increased demand to modify their supply chains in anticipation for more growth. Forty-four per cent of these retailers are only taking some action, while twenty per cent are aggressively expanding to meet demands. There are also those that aren’t making changes, as they prefer to wait and see how things will unfold.
Brands are posting less on social media
Social media is a ubiquitous part of online marketing. It’s the bread and butter of link building and requires an experienced team to organize properly. During the pandemic, surveys show that brands are reducing their social media presence. Nearly three quarters have slowed down their posting rate and they don’t believe that it will come back up any time soon.
One of the reasons for this could be that overall social media posting has also dropped. The only issue is that the drop in social media in business is even lower than the national average. For businesses, the focus has shifted to other aspects of the marketing strategy. Not to mention, many social media experts are now only adjusting to working from home, rather than in their usual environments. As time goes by, this trend could rebound and there might be a significant increase in the coming months.
Marketing activities increased
For many businesses, spending has dropped and they’re looking to cut corners wherever possible to keep things going. This isn’t the case for marketing, which is being increased across the board. It’s especially prevalent in digital marketing, as businesses are vying to be the top result for searches in online retail.
With the increase in demand for online retail, SEO has become even more important than ever. Lots of businesses that previously didn’t pay much attention to their rankings are now focusing on SEO and link building. Those will less experience in the field often seek help from GWM and similar experts to help them optimize their websites and pages. This helps attract consumers in the growing digital market, to compensate for losses on the brick and mortar front.
Relevant ad messages are resonating
Having the right ad message helps attract the attention of consumers. Digital marketers are aware of this. Having relevant ads is very important, as otherwise, consumers might not be very interested in the message.
What topic is currently more relevant than the coronavirus pandemic? It’s hard to find something that’s more frequent in today’s news cycles. This is something that marketers have taken note of and they are adjusting their ads accordingly.
Ads that relate to the pandemic score eighteen per cent higher on relevancy tests and eleven per cent higher on likability ones. They are also universally considered more reliable and informative, as everyone wants to find information about the coronavirus and its consequences.
It should be noted that the pandemic is far from over. Any changes that have been introduced by the government or by businesses might be subject to change, depending on how things develop. The stats are all over the place, which is only adding to the uncertainty of some businesses. Larger retailers and E-commerce giants will find it easier to bounce back from the pandemic, while smaller businesses are finding it difficult to go by. However, it’s clear that the pandemic will have lasting effects on advertising and how we approach online sales. As long as businesses adapt to these changes, they’ll be able to recover from the lockdown and continue doing business more efficiently.
We have a lot of resources available to help you build your business – Check out the free resources here.
Our CEO Jordan Fogarty held a free webinar helping provide massive value – see the pivot plan webinar here.
We are strong believers in segmenting our audiences so the right audience gets the right message at the right time. We recently reviewed a lot of internal processes around tracking and pixels to expand on this workflow. The impact can be measured by seeing higher...
One of the biggest frustrations for local roofing businesses is lead generation. Google has squeezed and squeezed the organic search results making it a pay to play ecosystem where you just have to be running some form of pay per click advertising to get shown at the...
For those who own an online store, it’s only normal that you want to promote your store to everyone in your network and everyone online. The more noise you make the attention your brand gets and in turn the more online sales. Ecommerce marketing techniques havent...