A lot of us are facing tough challenges in the coming months, as we look to do our part we would like to include some relevant resources that may make your transition easier. We’ll also be launching “Kitchen Counter Series” where industry leaders will be discussing the challenges marketers are facing today and how media businesses are mitigating the risk this pandemic has brought. What’s going on with budgets? Based on a study done by Beeswax, budgets are certainly being impacted, and rightfully so. The government doesn’t even know what’s going on so how can we expect companies to prioritize advertising spends. We all know that advertising budgets are always the first to go!
Any savvy investor knows the adage “buy low, sell high”. That’s exactly what’s happening in the programmatic market. With big brands like Coca-Cola pausing all marketing activity this creates more supply and limited demand resulting in reduced programmatic CPMs. Instead of steering away, marketers have the opportunity to be bold understanding that the inventory they select and creative messaging should be just.
Picking up the pieces The scavengers have already emerged selling toilet paper and hand sanitizer at premiums higher than $60+. But we’re better than that, certainly smarter! This is not a time to exploit the fear but a chance to be the north star in a sea of uncharted waters. People need a leader and it’s on all of us to step up since we aren’t getting that from Washington. Companies have the power to promote this movement, some of which already have. Adobe has used this as an opportunity to help people while also educating on how to stay connected. By offering a 90 day no cost license for “Connect” they not only help people work remotely, they build trust with their customers. What are people doing with their time? Total TV usage increased by nearly 60% (source: Nielsen). That’s no surprise as most of us have already confined ourselves to our homes. This data includes watching traditional live TV, DVR recordings, video-on-demand and streaming services, or other content through any TV set, game console or connected device. Streaming, in particular, jumps by 61% in times of crises. Live streaming across YouTube, Twitch and Facebook grew by more than 66% between the first week of February and this past week, (source: StreamElements). While e-commerce is up for the obvious categories retail has taken a huge hit resulting in big brands like TJ Maxx, Marshalls and Victoria Secret's shutting down their e-commerce sites. This makes sense for the brick and mortar business but for DTC there's still has ample opportunity to leverage Amazon, Walmart and Target to name a few. Little insights are hiding everywhere and its important to have the data and strategic mindset to execute on them quickly. One great example, tops are now being sold more than bottoms on Walmart.com as people take video conferences without their pants.
Social distancing has quickly turned into shelter in place. Excluding the obvious time people are spending creating the next baby boom, media consumption is at an all-time high! There're opportunities to take advantage of this, we just need to be cautious.
So, when will this all be over? Great question! Every time the market goes down by 20% or more it roughly takes 536 days to recover. The difference here is we have no idea how far down the bottom is. Assuming we are able to get the spread contained within the next month then we may be able to stabilize the market and start focusing on economic upturn. Hopefully the bail out helps but the fear is more of a “dead cat bounce” if not done correctly.
While we can’t control the markets, we can control what impact we have on our business. Below are 7 things the marketers can do right now:
Re-evaluate your technology: Are all partners necessary? Does this give you a chance to cut costs?
Renegotiate contracts: Requests to change current contracts or to get out of existing obligations where necessary
Break down walls: Use this time to promote cross functional leadership from all team members
Workflow evolution: You’ve been putting off remote work for too long. Use this as a case study to promote employee satisfaction and business performance.
Take advantage of low-cost media: With the exodus of direct IOs there’s an influx of premium programmatic inventory to be purchased at 35-50% discounts
Prioritize streaming video and connected TV: Streaming consumption is up by 61% as people spend more time at home
Update your Google business profile: many consumers solely rely on searching via Google or Google Maps
We will struggle for a while, but we’ll get through this! Hopefully it will make everyone stronger in the process. Being copped up in our homes isn’t easy and you will be dealing with more stress because of it. Tech Recipes will remain a resource for mental health in addition to our marketing services. Should you not feel comfortable reaching out directly, please continue monitor the CDC website for the most up to date news inclusive of mental health. Stay active, stay curious and, as a man much wiser than me said, go and be great! Additional resources:
Low-interest federal disaster loans
Facebook small business grants
90 day license to Avid Creator Tools