How to Become Digitized When Everything’s, Actually, Coronized?
You have already heard, got familiar with and maybe even (hopefully, not) experienced the consequences of the Coronavirus. What we all have to cope with is that the virus is spreading quickly, and it will continue to do so for some time.
At this time, it is difficult to estimate or predict how many people will be infected (or pass away, unfortunately), but it has certainly caused tremendous changes in global stock markets, which means that your business will be affected, as well. And because SIPOD Digital works with many brands and companies in different industries, we have already started analyzing the way it is affecting marketing. Let us explain what marketers should not do at this moment.
The first mistake any company can make is to try to exploit people’s fear of the situation. The supplies are running scarce, including sanitizers, toilet paper and other ‘bare necessities’… It is OK if you are selling any of those, but it is not OK if you are selling them at an unreasonable price, because it is not marketing and no one should take advantage of the situation for profit. It is wrong in so many ways, but is also imperceptive and near-sighted. Instead, you should focus on something that is long term.
Now that we got that clear, let us explain what the Coronavirus brings about for companies and marketers.
Businesses are going to struggle for a while
As the virus has brought about some important implications on a global scale, your business is likely to struggle for a while to make up for your losses. In China, for example, the sales decreased by 20.5% and the unemployment rate increased to 6.2%. Some companies will be able to pay their employees during a temporary shutdown, but not all of them will be able to do the same. In the tourism and travel industry, the expected losses amount to 820 billion dollars, with people being asked to take unpaid leaves and layoff rates jumping.
The total global losses caused by Covid19 are estimated at $2.7 trillion. It is not only money that is being lost, but traffic and conversions, as well.
In terms of SEO, there are evident and huge drops in organic traffic for most industries. News industry and finance have seen increases in their balances, but the travel industry has been facing tremendous drops in traffic. As for e-commerce, the consequences differ in relation to industry, whereby luxury goods have experienced the biggest drops in traffic and sales. Conversions have also been dropping in many industries, including the financial sector.
Nevertheless, experienced marketers suggest that the best time to double down is when others are not. During situations and circumstances like this, there is less competition, meaning that results can be achieved faster and easier, and you can even experience ‘a turn of luck’ in terms of potential reduction in pay-per-click advertising.
Even more so, if you are sitting on some cash during the economic turmoil, you may consider investing in new business and your digital marketing, because, to be honest – the more customers you have on your side, the more power over the market you will hold in the future and you will probably be able to sell anything.
The results may not be so obvious right away, but in the long term, they will be. Every time the market goes down by 20% or more it takes approximately 536 days to recover, and for the Coronavirus, we cannot even predict how far down it will go. As your business recovers, you will see increases in your revenue and the ROI from your digital marketing skyrocket!
We hope the Coronavirus will not last long and that consequences will not be detrimental (albeit for some people, they already are). In the meantime, try to remain safe and healthy, as that is the best you can do to reduce the impact of Coronavirus on the world. Speaking of your digital marketing, this is the right time for you to double down. This may be the time.