The Impact of Coronavirus on Marketing, E-Commerce, and Advertising

The ongoing coronavirus pandemic is impacting every part of our lives, from where we go and how we spend our time, to the priorities we set and how we spend our money. This, of course, has wide-ranging implications for marketing, advertising, and e-commerce, as well as many other sectors, such as travel, entertainment, and FMCG.

Only 14% of UK marketing campaigns continue “as planned”

Indeed, the ongoing uncertainty has had a significant impact on marketing strategies as organizations adapt to changing demands and focus on delivering digital-only products and content. 62% of marketers said their marketing strategies had changed in light of COVID-19, compared to a much lower 18% in just a few weeks.

The surge in organizations that have decided to change, adapt, or pause their marketing strategies since mid-March paints a clear picture of the growing toll of the coronavirus in the industry.

69% of UK organisations are seeing a decline in demand for their products and services

E-commerce

Fashion e-commerce orders in Italy increased by 28% between March 28 and April 1, along with a 13% increase in revenue for the sector, according to data from Emarsys’ daily COVID-19 Commerce Tracker.

For the past two months, Italian fashion retailers have seen a 40% drop in orders as the country became one of the hardest-hit regions in the world outside of mainland China. Revenue from the sector reportedly fell by 26% during the same period.

So far, Italy has seen the largest decline in fashion orders compared to other regions such as the US, UK, and France, meaning a return to normality could take significantly longer. However, it’s important to note that these regions are several weeks behind in confronting the virus, so the full comparative impact remains to be seen.

Now that the lockdown in Italy is slowly starting to ease, it appears consumers are more inclined to increase their shopping habits for more non-essential products like clothing, and while the industry’s recovery is slow, it appears to be steady.

Advertisement

British broadcaster ITV said it expects at least a 10% drop in advertising revenue in April, according to the Guardian. The company’s advertising revenue has fallen since March as some brands—particularly in the travel industry—decided to withdraw advertising until further notice. The decline in March was more severe than analysts had originally predicted, leading them to predict a 10% decline in the coming month.

Besides travel agencies suspending marketing activities, other events, such as the postponement of the new Bond film and uncertainty surrounding this summer’s European Football Championship, are likely to further impact ITV’s advertising revenue.

Social Media

Analysis by SocialBakers estimated the average social advertising CPM (cost per thousand impressions) for brands at $0.81, a figure that has steadily declined since the start of the coronavirus outbreak. The latest estimate is less than half the CPM in November 2019, which peaked at $1.88. Specific brand categories like telecommunications and consumer electronics declined at the same rate during the first three months of 2020.