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While the full marketing impact of COVID-19 (Coronavirus) on

consumer buying habits, brands and agencies is largely unknown,
there are many factors that will guide short-term decision making.
There are still many uncertainties as to how the next few months
will impact the global community, both professionally and
personally, so it is essential to look at both spectrums to make
educated decisions regarding marketing investments.

When making decisions on advertising campaigns, the two

primary areas to consider are changing consumer
behaviors and impacts on individual industries (from supply
chains to point of sales). Strategically thinking through the below
thought-starters will be crucial in making the right decision for
your brand or clients.

CONSUMER BEHAVIOR SHIFTS AND IMPACT

1. Increased “work from home” periods will naturally lead to an

increase in the time spent online for personal use. With all else
equal, this will potentially lead to an increase in ad inventory
across several platforms. As a result, it is possible to see the
cost per thousand impressions (CPM) decrease across auction-
based platforms, especially as some businesses scale back on
their marketing spend during this time. If ad inventory increases
and ad purchasing stays the same or declines, then the cost to
buy that inventory will naturally fall.

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2. As many people opt to remain in their homes, delivery

services like Amazon, UberEats, and DoorDash are likely to see
increases in demand due to their ability to provide products and
services directly to the consumer’s door.

3. With the economic downturn, consumer behavior is likely to

change drastically. For those without significant disposable
income, those planning for or are in retirement, and for small
business owners, an economic downturn might result in a sharp
decline in their propensity to spend. While consumers could take
a “wait and see” approach, advertisers should consider their
target audience and how their buying habits may change as a
result of the current economic climate. Marketers should
continue to look at their performance data and quickly adjust
campaigns as needed.

HOW INDUSTRIES ARE AFFECTED

1. As events or, as Twitter would say “Everything”, is canceled,

a trickle-down effect on the businesses participating in or
located around those events is likely to occur. After major
conferences, sporting events, and other large gathering events
have been called “off” and travel restrictions are placed
globally, travel and local-based businesses are struggling to
generate previously anticipated demand. Additionally, as
consumers are less likely to go into malls, movie theaters, and
other public entertainment venues, the ability for brick and

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mortar businesses to generate profits becomes more

challenging.

2. While there is a potential benefit for delivery companies

previously mentioned, other services such as Uber, Airbnb,
public transit, air travel, and companies that put people in close
proximity to others will potentially face challenges, as users are
choosing to avoid close contact in exchange for staying home.
This will not only impact those company’s bottom lines but also
their employees’ work schedules and employment status.

3. Industries or companies that are supply-chain reliant on Asia,

Europe, or other highly affected areas might encounter
shipment slowdowns. Understanding current product inventory
and future production ramifications will be important in planning
marketing campaigns throughout the next few months.

4. Businesses need to produce clear direction on how they will

proceed in light of the Coronavirus. As the overall concern for
personal health continues to grow, brands will be forced to
communicate how they are not only taking precautions with
their own employees but also how quality control mechanisms
are increasing to ensure no contamination or spread of the virus
to their consumers.

HOW MARKETING WILL NEED TO SHIFT

1. Overarchingly, marketers will have to do what they have

always done best – adapt. Staying on top of the latest trends,

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watching the data for insight, and understanding new consumer

behaviors will be key in driving successful marketing strategies
moving forward.

2. As mentioned, in-store traffic and demand are falling daily as

users stay home in the US and abroad. As this trend grows, in-
home online and TV activity will increase and advertisers can
reach their target users during this time by investing more
heavily in television (traditional or Connected TV), digital, and
direct mail advertising over in-store, out-of-home, and physical
advertising due to decreases in public foot-traffic.

3. As the world pushes through this challenging time,

compassion in advertising will be critical to ensure that brands
remain in positive light. Businesses should be a resource for
their employees, consumers, and other key stakeholders.
Ensuring that brands take a compassionate approach to
advertising will ultimately lead to long-term consumer trust,
satisfaction, and loyalty.

As the impact of COVID-19 continues to unfold, brands and

agencies need to keep a close eye on the changing consumer
behaviors and impacts on individual industries to ask the right
questions, ensure they are prepared for any outcomes and find
new opportunities. Many advertising platforms has offered digital
marketing resources for small and medium sized businesses for
those affected by COVID-19.
WHAT TO CONSIDER FOR YOUR BRAND OR CLIENTS

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 What industry is your business in?

 Is your business brick and mortar, eCommerce, or both?

 How are your core target markets or users impacted by

COVID-19?

 How is Coronavirus influencing your consumer’s buying

habits?

 How can you provide more value to those customers at this

time through your products or services?

 Is this an opportunity for your brand to go above and

beyond to give back?

 Are your employees safe and are you offering safe

consumer experiences?

Our team at Advantix Digital is working to adjust all current and

future campaigns to best fit the needs of brands and consumers
in as close to real-time as possible. If you are looking for support
during these challenging times, please contact us and we can
help you prepare for the coming months.