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1
Social Advertising in the Covid-19 Landscape
Intro-
duction
The coronavirus pandemic has changed the world as we
know it, and brands have had to reevaluate current work
structures, budgets, and strategies. While there isn’t a
playbook for our current situation, companies realize that
they need a new approach to their marketing activities.
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Social Advertising in the Covid-19 Landscape
Table
Of Contents
04 Executive Summary
3
Social Advertising in the Covid-19 Landscape
Executive Summary
The social advertising landscape turmoil, caused by the COVID-19 pandemic,
has calmed down but the world is not the same as a result. Both ad
performance and consumer behavior have shifted, and understanding these
shifts will be key to succeeding in social advertising in the coming months.
Consumers in the US are more sceptical to social ads than in Europe and
Asia. Especially in Asia, all age groups embrace digital services and social
shopping. Europe is a mixed bag with vast differences between markets -
Italy and Spain, maybe worst affected by the pandemic, show very different
consumer behavior across the board.
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Social Advertising in the Covid-19 Landscape
1 The Social
The
Advertising
Advertising
Landscape
In Turmoil
As with most advertising, social advertising came to
a grinding halt in March of 2020. The coronavirus
pandemic that had started weeks earlier was causing
economic instability. Most advertisers felt the best option
was to push the breaks completely, as the situation
caused too many uncertainties. Advertising spend
flowing through the biggest social media platforms fell in
some cases by almost a third.
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Social Advertising in the Covid-19 Landscape
Cost of Advertising
Changed, so Did the
Advertisers’ Results
As advertisers pulled their spend, E-commerce was struggling with
they decreased competition on supply issues. Travel advertisers
auction-based ad platforms. At the had nothing to advertise in a
same time, users were flocking to world that was locked down. On
these platforms users were flocking the other hand, some industries
to the same platforms to connect saw their demand sky-rocket:
with friends, get information, gaming, online education, and
and entertain themselves. The entertainment advertisers saw
results? The metrics that are used their CPM rising.
to measure advertising efficiency
were suddenly acting as erratically Looking back, it is clear that the
as the stock market. end of March and the first weeks
of April were exceptionally cost-
Cost per Mille (CPM), the most efficient - to those brands that
common way to measure were still advertising. As a result,
advertising prices, fell in concert consumers report seeing more
with the decreased ad spend ads from brands they have never
and increased ad usage. In some purchased from before.
industries, the cost of advertising
was cut in half over the course of
three weeks.
6
Social Advertising in the Covid-19 Landscape
During the pandemic, have you seen ads from brands you haven’t
purchased before?
10%
16% 14%
18%
24% 26% 24% 25% 24%
29% 31% 31%
16%
16% 15%
13%
21% 21%
25% 30% 32%
26% 25%
34%
70% 74%
69% 69%
54% 54%
50%
46% 44%
43% 44%
37%
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UK
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US
Ita
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Yes No Unsure
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Social Advertising in the Covid-19 Landscape
Different Countries
in Different Situations
Consumers also seem to be The travel industry is the one
engaging with social media exception to the rule. As an early
differently in different parts of the indicator, CPM prices for travel
world. As the coronavirus pandemic brands started trending down in
was sweeping through Asian Asia already at the end of January.
countries in the beginning, it had Europe followed at the beginning
little effect on social advertising. of February and then the US at the
Once it was clear that Europe and beginning of March.
the US would be affected too, CPM
curved downwards.
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Social Advertising in the Covid-19 Landscape
Using social media and spending the pandemic has had the biggest
more time online in general, has impact and the most dramatic
made consumers more open to lockdown measures.
engaging with ads during this
unusual time. However, even in Sweden, where
the country has stayed relatively
Based on the survey, consumers open, 38% of consumers report that
seem to be the most open to they are more likely to engage with
engaging with advertising on social media ads now than before
social media, in markets where the pandemic.
Australia 39%
Sweden 38%
France 50%
Germany 52%
Italy 63%
Japan 56%
Netherlands 33%
Spain 67%
Singapore 62%
India 92%
UK 45%
USA 38%
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Social Advertising in the Covid-19 Landscape
59%
of consumers globally say
that spending time with
family and friends is the
no. 1 reason for them to
use social media now.
I’m bored
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Social Advertising in the Covid-19 Landscape
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Social Advertising in the Covid-19 Landscape
LinkedIn 1% 3% 3% 4% 4%
Snapchat 8% 2% 2% 2% 1%
TikTok 6% 2% 1% 1% 1%
Pinterest 1% 1% 2% 1% 2%
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Social Advertising in the Covid-19 Landscape
43%
43%
and platform usage habits to your
ad creatives.
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Social Advertising in the Covid-19 Landscape
5%
7% 11%
11%
5% 6%
6% 6%
9% 11%
6%
12% 7%
3%
16% 19%
7% 14% 13% 3%
14% 11%
11%
14%
45%
30%
34%
24%
34%
28%
32%
38% 41%
41%
26%
43%
43%
39%
37%
33% 36% 34%
31%
29%
26%
24%
22%
18%
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US
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Social Advertising in the Covid-19 Landscape
2 Unusual
Unusual
Times Require
Times Require
Careful
Messaging
In a constantly changing situation that develops in
unexpected ways, what should brands say to their
customers?
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Social Advertising in the Covid-19 Landscape
People
Want Help
Preparing for
Normalcy
Just over one-third of consumers
have wanted brands to focus on
appropriate messaging - advising
consumers on how to stay safe Philanthropy efforts are valued by
when using products and services close to 1/3 of all those surveyed.
during the lockdown. However, However, this stage of the lockdown
rather than being opposed to appears to be characterized on a
social advertising, more than high level by brands and consumers
4 in 10 consumers polled in most looking forward to resuming normal
markets have valued ads that offer service. It is important to note that
products and services appropriate regions like Singapore are much
for lockdown lifestyle. further down the lockdown road
than many European markets,
so aside from regional market
differences, customer sentiment
and needs are likely to be at
different stages of development in
different places.
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Social Advertising in the Covid-19 Landscape
How would you like to see brands react to the pandemic in their social ads?
Across all markets polled, there two months, leads the pack
are clearly more consumers who in terms of receptiveness to
want to see advertising relevant social advertising. Only 7% of
to their situation than those who Singaporeans polled believed
wish advertising to stop. People advertising should stop.
who come to social media for
connection and community are On the other hand, less than a third
most likely in a headspace where of French consumers want brands
they are more accepting of ads that to take action - and nearly a quarter
address a need in their life. wish for all advertising to stop. In
general, the EU and US seem more
Singapore, a highly digital society cautious than Asia when it comes
that has been on lockdown for to social advertising.
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Social Advertising in the Covid-19 Landscape
53%
49% 51%
49% 48% 48%
46%
40%
32%
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ly
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UK
A
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US
tra
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Ind
po
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Sp
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Social Advertising in the Covid-19 Landscape
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Social Advertising in the Covid-19 Landscape
Italy
Japan
Sweden
France
USA
Netherlands
Australia
India
Guidance on how to start using products and New products and services developed to help cope
services again with the lockdown
Returning back to normal, but adjusting advertising Returning back to normal, advertising as before
message to the situation the pandemic
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Social Advertising in the Covid-19 Landscape
3 Not All
Not All
Industries Are
Industries Are
Created Equal
48% of consumers globally have made purchases based
on social ads over the past 30 days. These purchases have
been heavily skewed towards fashion, retail, wellness, and
entertainment. Industries that rely on freedom to move such
as travel, tourism, and ride-sharing continue to be heavily
impacted by the lockdown.
Yet the world is starting to move once again, and
consumers are beginning to consider how they can safely
enjoy the same services and experiences they once did. For
some industries, this means converting offerings to digital
channels, while other industries are altering their supply
chain infrastructure to cope with increased e-commerce
activity.
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Social Advertising in the Covid-19 Landscape
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Social Advertising in the Covid-19 Landscape
31%
Singapore and India have by far the
lowest number of consumers who
did not place a limit on spending
through social advertising. This
may be for a couple of reasons: of US consumers have
consumers in both markets
purchased something
are comfortable performing
e-commerce transactions, and they based on social ads in
may already have a good idea of the past 30 days.
what they are - and aren’t - willing
to spend through social platforms.
It may be the case that consumers in markets like Australia and the
Netherlands have not performed enough online transactions to have
an opinion on what their upper spend limit may be. Even so, consumers
in Singapore and India are clearly prepared to make more expensive
purchases through social advertising.
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Social Advertising in the Covid-19 Landscape
8% 10%
21% 23%
24% 24% 4%
5%
30% 32% 31% 28%
34% 2% 35%
11% 3%
5% 7% 3% 5% 21%
3% 1%
1% 9%
9% 7% 7%
6%
7% 19% 9% 31% 5% 7%
9%
7% 19%
19% 18%
12% 23%
14% 14%
14% 27%
17%
28%
20%
25% 28% 27%
30% 30% 26%
28% 35% 20%
26%
23% 24%
21%
16% 16% 18% 17%
14% 14% 13%
10% 10%
n
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Social Advertising in the Covid-19 Landscape
48%
products take precedence as
the items consumers are most
prepared to purchase over the
next 30 days. The UK, US, and the
Netherlands stand out as markets of UK consumers are
with consumers primed for fashion
purchases - yet electronics
open to shopping
purchases are the preferred fashion based on
consumer choices in Italy and social ads.
Spain - markets that have endured
restrictive lockdowns.
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Social Advertising in the Covid-19 Landscape
What type of product would you be most open to purchasing via social
media in the next 30 days?
13%
49% 40%
37% 37% 38%
35%
32%
37% 37%
26%
22% 21%
21%
15% 14% 13%
59%
47% 48%
42% 42% 49%
36% 43%
30%
28%
26% 26% 31%
18%
15%
11%
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Social Advertising in the Covid-19 Landscape
27
Social Advertising in the Covid-19 Landscape
Most open to purchasing groceries via social media over the next 30 days
68% 68%
62% 63%
39% 39%
30%
20% 21% 21% 21% 21%
ly
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UK
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Social Advertising in the Covid-19 Landscape
Most open to purchasing digital goods and services via social media
over the next 30 days?
52%
ce
lia
UK
ain
ly
ia
s
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nd
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de
pa
US
Ita
Ind
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Social Advertising in the Covid-19 Landscape
What type of ads would you like to see from gaming and online
entertainment?
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Social Advertising in the Covid-19 Landscape
What type of ads would you like to see from travel brands?
Customer service Feel-good reminiscence Flexible rates and cancellation I think travel brands shouldn't
announcements of past trips terms for future trips advertise right now
60%
52%
48%
37% 43%
40% 39%
34%
30%
35%
32% 31% 32% 31%
29%
26% 24%
23% 22% 30%
20% 21%
16%
31
Social Advertising in the Covid-19 Landscape
4 New Demo-
New Demo-
graphics Are
graphics
Embracing
Online
The coronavirus pandemic has had an impact on how
different demographics use and engage social ads
and they have also as social ads have also found their
way to older demographics’ hearts. These age groups
seem to be open to see and engage with the ads they
see. The reasons for spending time on social media
vary. However, most age groups globally turn to social
media because they are bored or because they find it an
enjoyable distraction to the constant news updates.
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Social Advertising in the Covid-19 Landscape
33
Social Advertising in the Covid-19 Landscape
Has the coronavirus pandemic made you more open to engaging with
ads from brands on social media?
35%
34% 34%
33%
37% 32%
31%
29%
28% 32%
27% 27%
30%
25%
22%
13%
12%
11% 12%
10%
In the last 30 days, have any of the social media ads you’ve encountered
spurred you to make a purchase online?
60%
Yes
55%
50%
45%
40%
18-24 25-34 35-44 45-54 55+
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Social Advertising in the Covid-19 Landscape
61% 43%
Australia
USA
Singapore
Italy
UK
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Social Advertising in the Covid-19 Landscape
In Europe and Asia-Pacific, more than half of the population wants to see
both grocery stores and e-commerce sites mentioning price offers and
sale items in their social media ads.
What type of product would you be most open to purchasing via social
media in the next 30 days?
60%
Clothing
Groceries
40%
Electronics
Digital Services
20%
Furniture
0%
18-24 25-34 35-44 45-54 55+
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Social Advertising in the Covid-19 Landscape
5 The Future
The Future
Is All
Is All About
Digital
About
37
Social Advertising in the Covid-19 Landscape
What type of ads would you like to see from grocery stores?
56%
54%
Price offers and sale items
Safety information,
special opening hours etc.
7%
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Social Advertising in the Covid-19 Landscape
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Social Advertising in the Covid-19 Landscape
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Social Advertising in the Covid-19 Landscape
Why Partner
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41
Social Advertising in the Covid-19 Landscape
AMSTERDAM M A DR I D
Mindspace Amsterdam Dam WeWork
Nieuwezijds Voorburgwal 162 Paseo de la Castellana 77
1012 SJ, Amsterdam 28046, Madrid
AUST IN N E W YO R K
WeWork 440 Park Avenue South -
316 W 12th St - 6th Floor 14th Floor
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BERL IN PA R I S
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10117, Berlin 17-21 Rue Saint-Fiacre
75002, Paris
BUEN OS AIRE S
Torre Bellini Esmeralda SA N F R A N C I S C O
950 Capital Federal 580 Market Street
B, C10007, Buenos Aires Suite 200
San Francisco, CA 94104
DUBAI
Astro Labs Dubai S I N GA PO R E
Parkside Retail Level Cluster R One Raffles Place #34-03
JLT, Dubai Singapore, 048616
DUBL IN SY D N E Y
Dogpatch Labs 175 Pitt St - 15th Floor
The Chq Building, Custom House Quay, NSW, 2000
North Dock, Dublin
SÃO PAU LO
HELSI N K I Rua Prof. Atílio Innocenti
Postitalo 165 - Vila Nova Conceição
Elielinaukio 2G - 4th Floor São Paulo, SP 04538 - 000
00100, Helsinki
TO KYO
LON DON Business-Airport
Business Centre 3F SHIBUYA SOLASTA
2 Stephen Street 1-21-1 Dogenzaka Shibuya-ku
London, W1T 1AN Tokyo, 150-0043
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Social Advertising in the Covid-19 Landscape
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