by Wesley Cherisien
Many advertisers are experiencing a sharp drop in sales due to the global economic downturn caused by COVID-19 and while 70% of the world population spend more time on their mobile devices the US dropped 17.2% due to mandatory locks.
Interactive Advertising Bureau, a trading group in the online advertising industry, conducted a survey of 400 cross-industry ad buyers to measure the impact of the pandemic on advertising plans. Almost 25% of respondents indicated that their advertising budgets for the second quarter of 2020 were on hold. Another 46% said they would reduce their advertising spend by 33% by 33% for the period March – June. . Worldwide advertising spending has declined by $ 20 billion since [Mrd.9002] . This reflects measures that can be used to drastically adjust or completely reduce budgets.
Although history is not the same for every company, there are industries that are more affected than others. When it comes to the global hotel industry, airlines, cruise companies, hoteliers, car rental companies and casino operators have come to a complete standstill. In 2020, it was estimated that global travel 711,944 million GDP ; however, adjusted to $ 568,583 million is less than $ 685,065 total in 2019.
Additionally according to marketing expert Neil Patel conversion rates for industries such as agriculture, construction, e-commerce, education, energy, finance, insurance, manufacturing real estate, retail, software / Technology, telecommunications and transportation have been declining since the pandemic. For this reason, many small and medium-sized businesses that have traditionally used digital advertising to attract new customers are dramatically reducing their advertising spending as they face lower conversions due to customer anxiety due to economic uncertainties.
As fewer advertisers compete for advertising space, advertising costs in the various industries have decreased steadily. The global CPM (cost per 1000 impressions), measured in 18 industries in the first quarter of 2020, was $ 0.81 compared to the fourth quarter of 2019 ($ 1.88) .
Advertisers who specifically target customers on Facebook have also seen significantly lower advertising costs. In March 2020, advertisers paid an average of $ 0.09 per click, compared to the beginning of the year when the cost was $ 0.11 representing a reduction of almost 20% in the first quarter alone .
While advertising costs are indeed becoming cheaper, using falling advertising costs requires strategic marketing efforts with a message that appeals to your target audience in a way that meets their needs today.
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