A newly-updated report by eMarketer out this month has changed its forecast on paid media spending to be even lower than previously thought.
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Originally documented by Greg Sterling, the eMarketer report shows a further drop forecasted for Q1 and Q2 2020 ad spend — offering further insight into how the global market is shifting due to COVID-19.
The report takes the previously forecasted $28 billion and reduces it to between $25.5 billion on the moderate end of the forecast and $23.8 billion on the more severe side of things.
A drop of between $6 and $8 billion… that’s a big decrease either way.
The range of forecasts is attributed to the possible outcomes for paid search marketing.
Sterling notes that eMarketers report “assumes a pull-back starting in March and overall second-quarter year-over-year declines of 20% to 29% through the end of the quarter.”
Social media platforms respond
Social media has seen increased traffic during the COVID-19 quarantine, but that hasn't translated to increased sales.
The pandemic has shaken up the way companies are operating, forcing many to learn how to market and sell in a digital-only world. It’s also changed how consumers have to do business with brands, many of whom are spending less as they wait to see how things will pan out.
If you’re in the food business, you might want to lean into keywords like “delivery” and “curb-side pickup”. It’s important to check the trends for your specific industry to see where you can still thrive organically and in paid media, budget pending.
Due to the rapid pausing of budgets, you may find that your Cost Per Click (CPC) or Cost Per Impression (CPM) price has dropped with your competitors.
With fewer companies vying for the same keywords, it’ll be important to monitor exactly how the CPC and CPM changes — and if there are new keywords you might be able to take advantage of.
With many companies being remote for the first time due to COVID-19, you may find yourself struggling to get your footing in this new digital workspace we’re in. But you’re not alone. We’ve created ways to help you get back on track and set your company up to weather the storm.