Nouvique Tech Blog

Should we keep investing in PPC Campaigns in 2020?

We are living in difficult times, with uncertainty rising because the emergence of the second wave of Covid-19, countries in Europe and around the world are putting restrictions to Businesses and time curfews for their people, Businesses are confused and they are in a very difficult position where they have to be extra careful in managing their funds, that is why a lot of Businesses are wondering whether they should continue to invest money on marketing campaigns or not, because the results that they are getting are not the same as before the pandemic and PPCs do not seem to have the same impact on the individuals.

Businesses are trying to adapt and trying to find the right answers to their problems, with more people staying home and participating in less outdoor activities, they get to spend more time online, there are Businesses who are profiting from this and driving traffic to their page and converting visitors into customer, but there are also Businesses who are struggling and not getting results from this.

Given that Businesses are trying to find ways to reduce their operational costs, it is tempting to put an end to their marketing campaign budget and use those funds to cover some other operational costs, but is that really the right thing to do? Or should Businesses continue their Marketing Campaigns?

We believe that putting a stop to the marketing campaigns is not the right choice for any Business, but reducing the budget might be, this is a complicated answer for a very complicated issue and this is not a general answer that is going to solve or be relevant for every Business, each industry will need it’s own tailor made measures for their Marketing Campaigns.

What happened during the complete lockdown?

Businesses were confused nobody knew when this would be over and most Businesses overlooked the importance of having traffic driven to their Social Media Pages and Website and what that did is it impacted the attention that Businesses were receiving prior to Covid. Social Media Pages and the Websites are channels were Businesses convert the visitors into customers and if you continue to let them out to dry, your numbers are going to drop and the conversion rate is going to be very low.

This crisis is not only impacting Businesses but also the people who surf the net, because there is a lot of information being processed by them on a daily basis, because they spend more time online, their focus is not on Businesses they can’t interact with, that is why the return on investment on PPC is not the same, because people are prioritizing other stuff. For example if a sponsored ad about traveling to Paris came up to you while you’re surfing the net, you are not going to look at that thing with the borders closed, it is impossible at the moment, but if there was going to be an Ad that was going to talk about how eating a specific type of fruit helps you with your immune system, would you click it? My guess is yes, that is one of the reasons why healthcare has received more attention than travel agencies lately or other Businesses that are just not in the loop at the moment.

There are some Businesses who benefited the most out of this pandemic crisis and other Businesses who took a major hit.

What industries were minimally impacted by Covid-19 and should continue with their PPCs?

Medical, Financial, Legal services, Fitness, Education, Auto Repair shops, Local Businesses like Food & Grocery shops, home appliances were not affected as negatively as other industries. They had their ups and downs, but the attention that they received did not drop massively.

What industries were negatively impacted by Covid-19 and should be very careful with their PPCs?

Traveling, hospitality, bars & restaurants, live events, conferences, sports and fitness, general retailers and business services that can not operate online and can no bring the delivery to your home have taken a major hit in the dominance hierarchy and the attention from the visitors, that is why they need a new plan for their PPCs, they need to do a better job at targeting and operating on a low budget to get them the most of their marketing campaigns.

 

We believe that when it comes to these times, every Business should have a truthful conversation with themselves and realize how their products or services fit in these difficult times, we can’t be stubborn and demand results from the market as if nothing happened, if your product or service is required and can fill a spot in the market, realize how important it is, how much do people need it, how much they don’t and then set a marketing budget and try to be as efficient as you can with it.

What if the product or service you are trying to sell does not fit in this time? Then, maybe it is time to pull back and not waste anymore resources until further change.

How are customers reacting to Advertising?

This crisis has had an impact on everybody, not just Businesses but also individuals, some of them are lucky enough to work in industries that Covid-19 did not affect and their salaries have remained the same, other individuals have been part of industries that have taken a major hit due to this pandemic, so in one way or another, people are smart enough to understand the marketing angles and not get any bad reactions to marketing messages even during this economy crisis.

A very good example, because the borders were closed, travel agencies and hospitality businesses were making Ads, encouraging people to travel locally and visiting their country, other food suppliers were encouraging their customer to buy locally and the people were embracing the movement as well.

Understanding the situation and knowing the struggles, people reacted to these marketing efforts in a positive way.

Wrap up

We do not know if things are going back to their normal state and maybe “normal” as we knew it has to change and everybody is going to change their perspective on what we consider “normal”, Businesses will have to adapt to this change and the way they are going to do it is by running an analysis on how to market is going to operate. Putting a stop to payed promotion is not going to solve the problem, but adapting your budget in a way that your Business still can get exposure by not hurting you financially is the right way to go about this. If your PPCs are not giving out the same return on investment, maybe it is time to change the way you market you content and make it more relevant for the viewers.

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