COVID-19 will be remembered as a rare crisis that brought everything to a collective halt. Its impact has affected the health and security of the planet. The impact of COVID-19 on the global market has resulted in increased uncertainty and has caused the global stock markets to nosedive and crash. Every business has felt the whiplash from having to quickly stop, pivot, and adjust accordingly. Some businesses have closed their doors and some have made significant cuts, but ALL businesses are worried about what the future holds.
Although this uncertainty can be overwhelming, it doesn’t mean that you can sit back and let go of your marketing efforts. If anything, this is a valuable time to ramp up and reevaluate your marketing strategy. Make sure to keep your community in the loop about your company’s efforts and engage actively with them during this time of isolation. Also, thanks to WiFi, working from home isn’t that crazy of an idea! If possible, make sure that your entire team can work from home safely for the next few months.
This virus is expected to last for months and even possibly reoccur in cycles, with new cases keep cropping up every day. The coronavirus will continue to affect the global economy and market.
What does this mean for you? Let’s take a look at the economic landscape so that you can put your best foot forward. We’re sharing a birds-eye view on the impact of COVID-19 on the global market and how marketers can use this time wisely.
Businesses Will Struggle for Some Time
China was able to see a decline in the number of new coronavirus cases, but the rest of the world still needs time to reach that stage. Businesses will likely see and feel the impact of the virus over the coming year. To put things into perspective, the COVID-19 pandemic caused retail sales to drop a whopping 20.5%, while the unemployment rate climbed to 6.2% in February.
Conglomerates like Apple closed their stores to control spreading COVID-19, which led to a dip in profit and income. Though such companies have enough capital to compensate their employees during lockdowns, not all businesses can do the same. Small start-ups and even established companies will have to downsize to stay afloat if the situation worsens.
The travel industry is estimated to lose around 820 billion dollars! Italy is expected to see a decrease of around 28.5 million tourists due to the severe outbreak of coronavirus in the country. Various travel companies such as Virgin Atlantic and British Airways are encouraging and asking their workforce to take unpaid leaves.
Overall, the COVID-19 pandemic is expected to cost the global economy a massive $2.7 trillion. It’s not just affecting businesses monetarily; it’s also impacting website traffic, lead conversions, and vital marketing strategies.
Most Industries Have Seen a Drop in Organic Traffic Due to the Impact of COVID-19 on the Global Market
Since we’ve been encouraged to stay home, it makes sense that marketers are suffering from a drop in organic traffic. This is especially true for marketers whose websites and business revolves around the hospitality industry. Traveling abroad is out of the question with the ongoing COVID-19 lockdowns and the halt in air travel. So long, summer vacations *wipes tear*. This is why most people aren’t looking up anything travel-related online; hence, the massive drop in organic traffic.
As for the e-commerce market, for most online stores, there has been a steady and gradual decline in traffic. Websites that cater to luxury goods such as branded items, sporting goods, etc., have seen an expected drop in traffic. People are being cautious about spending their money until the global economic situation steadies and the spread of the virus dies down.
E-commerce stores that sell grocery items and other everyday essentials continue to experience massive spikes in organic traffic. This is because the impact of COVID-19 on the global market has inspired hoarders who have taken to stocking up on everyday essentials such as toilet paper (STOP DOING THAT!), hand sanitizers, and disinfectant wipes.
Additionally, marketers that are in the financial or news industry also saw their organic traffic skyrocket. It makes sense since everyone wants to stay up to date with the pandemic and its effect on people and businesses.
What does it all mean for you and how can you effectively deal with this changing landscape?
Take Smart Action During the COVID-19 Pandemic
The coronavirus doesn’t seem to be going anywhere, which means the market will experience more lows in the coming months. The ripple effects produced by the virus will continue to upset the market in the long run. We have to be cautious moving forward and the lives we lead will be different than before.
This presents a perfect opportunity for marketers to take action and do so in MEANINGFUL ways. Present your services as relief aid to brands that are hurting or don’t have the time and resources to focus on marketing. It might sound counterintuitive, but now is the best time to stay proactive in your efforts. This is because there’s less competition in the landscape and your services will have more room to shine.
If the market keeps suffering, many publicly traded companies will struggle with paying off their debts. This will lead to bankruptcy, which will have two results – they will be bought out or the government will bail them out. This will further ensure that there is less competition for you.
If you have some capital, then make use of that and buy out other companies. Your best bet is to buy media companies as there’s a lot of potential in that market sector at present. You might not see much in terms of returns right away, but in the long run, it will help you make profits later on.
To ensure the smooth running of your operations, churn out content that provides your audience with helpful solutions. Whether it’s videos of your daily routine or inspirational graphics – people want to engage NOW more than ever. Make sure your website is up to date and lead your audience through links, they may even lead to some conversions.
The Bottom Line
Hopefully, we will be able to flatten the curve effectively and slowly get back to the things we enjoyed pre-coronavirus. Make sure to exercise caution and protect yourself and your employees from the virus. Keep your consumers in the loop about your company policies and changes when dealing with COVID-19.
We hope that you take the impact of COVID-19 on the global market into account and make smart marketing decisions. Work toward engaging with your consumers, zeroing in on your marketing strategy. Acquiring companies that are expected to enjoy massive growth in revenues in the short and long term. This way, you can be at the top of your game when we come out of this phenomenon on the other side.
Visit our Coronavirus page for more information on how Margaux Agency can assist you in developing a crisis communications marketing strategy.