COVID’S IMPACT ON BUSINESS ADVERTISING PATTERNS
Not only has COVID-19 transformed how businesses operate, but it also changed how they maintain and develop their brand and customer base. Advertising practices can make or break a business, so it is essential that businesses recognize how the advertising landscape has been transformed.
The pandemic has undoubtedly caused a shift in consumer behavior, so it is crucial that businesses adjust to the new normal. Here are a few points to better understand the change in advertising:
Modify Your Marketing Strategy From Identity-Based Marketing to Audience-Based Buying
Marketers are ditching the outdated strategy of categorizing audiences by age and gender. Today, specific data, such as demographics and psychographics, exponentially increases the accuracy and efficiency of getting to your target audience. Audience-based buying allows advertisers to purchase target audience data to inform their decision-making.
Instead of advertising to a broad audience, such as men ages 25-55, audience-based buying can help your business identify and reach more niche customers. Traditional targeting wastes money on advertising to those who aren’t interested, but focus spending uses data-driven strategies that will make your advertising budget go a long way.
The Change in Consumer Behavior Creates a Shift from Traditional to Digital Advertising
The first rule of advertising is that the ads have to be seen. Life during COVID-19 has become a life lived online, and screen time has increased exponentially during lockdown. Many businesses have adapted to these changes by shifting from offline to online marketing strategies.
Digital advertising is especially appealing because it also allows businesses to keep pace with rapid shifts in consumer behavior and adjust messaging and budgets within a few hours. Plus, unlike traditional advertising, online marketing provides accurate analytics that can be evaluated and measured to provide insight on ad effectiveness.
Companies Will Redirect More Advertising Money Into Customer Care and Experience
Businesses are focusing more on their customers and are investing advertising dollars to improve customer experience on their platforms such as websites and mobile apps. Companies are starting to see that engaging with customers and personalizing customer experience is a win-win for everyone.
Here are some statistics about customer experience in 2021:
$1.6T is lost every year in the U.S. because of poor customer service
74% of consumers are somewhat likely to buy based on experiences alone
80% of consumers are more likely to purchase when brands offer experiences personalized to them
48% of consumers have left a website without purchasing because they felt it was poorly curated for them
Truth in Advertising is a Big Deal
In 2021 and beyond, building trust with both your potential and current customers will be crucial. Brands need to be mindful of the transparency in their advertisements, as it directly impacts a company’s reputation and customer trust. False advertising can spread like wildfire and ruin a company’s reputation. Once you lose a customer’s trust, it will be hard to ever regain it.
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