How the Outbreak is Affecting Paid Media Performance

As the ongoing epidemic is spreading rapidly, it is also influencing the marketing budget for most companies, and many have reduced their paid marketing budget. Many small businesses have even completely stopped their paid advertisement campaigns because they currently have no revenue from their business.

Now this situation has triggered an essential question:

What amount of money is currently not being invested in paid media advertising, and what does it mean?

Social Media Ads Hit Worst By the Pandemic

According to a survey, marketers were asked: “what media types have they reduced the budget or paused, as compared to their initial marketing investment?”

Result tells that due to the health and economy crises, they have lowered their budget in paid social ads and display ads. It was also explained that paid search ads are getting more investment, and it is constantly getting investment from the marketers.

This explains that search engine marketing is much higher in demand than other paid advertisement methods. This happens because most of the business wants to appear in a higher position on the SERPs.

How has the pandemic Affected Search Ads in April 2020?

As the ongoing health issues are rising quickly, it is affecting every business and its marketing behavior. In a few surveys, we found that search ads are among the rare surviving paid marketing channels during the pandemic. Along with the small business and marketers, many big companies have also invested drastically in search ads.

One of such big brand is Amazon that significantly utilized the search engine ads to target its customers during the outbreak. The most performed search ads were for their essential services and products.

The Outbreak Impacts on Social Media Marketing

Facebook Ads has shown the sudden drop in its usage, including Facebook Feed, Instagram Stories and Instagram Feed. According to some reports, there is approx 49% sudden drop in the Facebook ads CPM cost since March 1, 2020. That time, the pandemic forced countries to shut down all business activities, excluding essential services and products.

Despite this, the conversion rates have become noteworthy. In March and April, the conversion rates in paid marketing are proliferating, and it is being said that these two months have shown the strongest conversion rates of the year.

As the situations are getting even worst, it is possible that we may face an even more brutal downturn in the paid media performance. Where the social ads tend to used less during these days, the conversion rate is pretty high as well as the advertising cost has also reduced. It is a golden chance for the small marketing budget business owners to increase their brand awareness using social media ads.

It is possible that current health and economy issues may remain for a prolonged period as there are nearly 2 million infected people around the globe. The counts of positive cases affected by the outbreak are rising day by day. It is now apparent that businesses need to adapt to the current environment accordingly in order to survive.