As 2120 monitors the rapid developments regarding the Coronavirus, our team is doing what we’ve always done when presented with historic challenges—focusing on what we can control. Right now that means operating 100% remotely to ensure our employees’ safety and to slow the spread of the virus. Video conferencing, Slack messaging and other digital project management tools are helping our teams continue to collaborate smoothly and maintain our commitment to the best client service.
As your organization grapples with some of these same challenges, I wanted to share some thoughts and observations from phone calls I’ve had in the past two weeks:
- Pivot your business to an online-centric focus. People are home and doing everything online. You may not be able to take 100% of what you do online but what can you do creatively that offers a portion of it online? Regarding this topic, you can read this article about defensive and offensive business approaches during recession.
- Decrease costs in online advertising. We are seeing a decrease in most industries when it comes to online advertising. As advertisers are decreasing their budgets, the overall cost to advertise on Google (and other online places) is also starting to decrease. We can see prices are dropping in most segments, even over 20% in some cases. When all this settles down, it’s quite possible that the demand stays lower, as well as prices. However, it’s also possible that businesses try to compensate, which in turn will increase demand and prices.
- Optimization vs. Spending. Often times the biggest part of marketing budgets is advertising, while only a small amount goes into advertising optimization. However, in moments like these, it’s advisable to focus more on optimization, especially with performance-oriented clients. For example, if a monthly advertising budget is $10,000, with good Conversion Rate Optimization (CRO) the conversions can grow from 0.1% to 0.2%. In that case, one can get the same result for half the budget ($5,000).
I’ll continue sharing new info with all of you, and I hope these thoughts and tips end up being of help to you. Email me if you have any questions or comments!
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Even if it is just a phone conversation, we are here to listen and advise.