Ad Budgets Decreasing due to Coronavirus
With Coronavirus taking whole world under the strict control in pretty much every aspects of life, businesses are of course taking their toll also. Financial sector is in free fall and production sector is strugling, but what about advertising and marketing. Well, COVID-19 makes no exceptions. From a marketing and online advertising perspective, it is likely that COVID-19 is going to take a hit on this segment too.
Ad Budgets on the decline
Even though the start of the year is known for not having the highest of ad rates anyway, it is very likely that the ad rates will be lower than they have been at these times of previous years. The main reason for this is because businesses that have been most affected by the coronavirus will reduce their ad rates significantly and that mostly includes airlines, transport, tourism, public relations, social gatherings and many more.
And because of that, with the demand dropping, the competition for ad spots will reduce, resulting in publishers gaining a much lower CPC than before.
What can you do?
Not much unfortunatly. But at this moment there is no apparent drop in ad demand. However, this is because the budgets of business usually last more than a few months, and when these budgets start refreshing then the drop is likely to occur which is probably at the end of the first quarter. So if your ROI decreases or results diminish, reduce your budget accordingly. Even though this might be bad for some markets, it will be good for markets that keeps people at home, like streaming services, food delivery and similar markets.