Friday, September 11, 2020

The Impact of COVID-19 on Marketing

Marketing professional Amy Hefti holds a bachelor of arts in advertising from Iowa State University. With more than two decades of experience in marketing and advertising, she has served in top advertising agencies and consulting firms including Accenture Consulting in New York City and NCL Government Capital in Minneapolis. As head of marketing at NCL Government Capital, Amy Hefti provides innovative marketing and advertising solutions for thriving businesses.

The COVID-19 pandemic has triggered a recessionary impact on the American economy. The country experienced a 4.8 percent GDP decline in the first quarter of the year, and 36.5 million people were displaced from their jobs in two months.

When people lose their jobs, they conserve their savings and trim their budgets, resulting in a significant decline in the sales of retail stores and e-commerce platforms. Likewise, many marketers and advertisers are adjusting to a slower economy. A recent survey revealed that while 65 percent of marketers plan to reduce their annual marketing budget, 86 percent envisage that it will be increasingly challenging to reach their marketing goals.

Therefore, given the current marketplace realities, there is the need to adopt solutions that blend new processes, technologies, and human resources. Marketers should review their marketing strategies, brainstorm, and restructure their budgets. But trimming the marketing budget is hardly a viable option if it will weaken all marketing efforts.

The lockdown has caused a dramatic increase in the screen time of the average individual. As people spend more time with their smartphones, computers, televisions, or video game consoles, businesses can seize this opportunity by shifting their focus to multi-channel advertising including search engine optimization (SEO), social media, pay-per-click (PPC) advertising, and in-game advertising.