In the current situation, the efficiency of advertising is now more important than ever. Thus, it makes sense that the experts in the design of media buying take into account the increasing activity of consumers in digital media and direct their inputs just where the susceptible target group is located.
The measures taken by the Slovenian government, following the example throughout the entire world, in order to contain the COVID-19 pandemic outbreak, have created perfect conditions for the increase in online web traffic, and consequently also for the increase in digital advertising. It was expected that people, who had no chance for entertainment and recreation outdoor, would spend more time on the internet. This March, we recorded an increase of 52% in digital media range in Slovenia, while the average increase in the Adriatic region amounted to 59%. We used the iPROM’s technology infrastructure for digital advertising. A huge increase in online web traffic also continued in April, as many countries only started releasing some measures in May. We anticipate that increased visits to digital media will continue after the restrictions will have been lifted.
See below how all this affects digital advertising.
Growing importance of contextual brand placement
In theory, an increase in web traffic means more digital media visitors, more content reading and more ad views. In practice, however, the matter is not so straightforward, especially in the unstable conditions that marked this period.
Overnight, advertisers adjusted the offer and content of advertising campaigns to the situation, so they were even more careful to reach potential buyers with their offer when users were receptive to it. Therefore, media planning strategists were forced to ensure appropriate placement of advertisements alongside content that is very important to the user and of top quality at the same time, which in turn affects consumption and perception of the brand.
Especially in recent weeks, we at iPROM have therefore accelerated the adaptation of advertising strategies and programmatically managed the display of campaign advertising messages related to content within each medium, as we are aware that the context of advertisement placement is of extreme importance today.
Namely, by using a contextual advertising strategy, we display advertisements in connection with the content that is content-related to the advertisement, while having a positive impact on the brand perception. Thus, we effectively reach users who are interested in a particular content area and are susceptible to the advertisement. In other words, we catch the consumer in his/her best possible mood to accept an advertising messages. The user comes first – this is particularly important in the current situation.
Changes in media planning are inevitable
Understandably, advertisers are much more careful when planning their investments in advertising in precarious times (either because of choice or need) – especially since many consumers are tightening their belts. Both, businesses and consumers are adapting to the current situation and looking for ways to effectively build bridges between the existing supply and demand. And digital channels are prevalent in these times due to the peculiarities of the current situation.
We therefore advise companies to join the digital transformation, review media plans, messages and points of contact with consumers, making sure that they are effectively reached in way that interests them and through the channels where they are present today. An excellent opportunity to strengthen marketing activities in digital media and specifically targeted communication with target groups presents itself.
The efficiency of advertising is even more important
This adverse situation has shaken the field of advertising and forced advertisers across the advertising ecosystem to focus on costs and savings. The questions that we were already asking in the past have suddenly gained even greater importance. Today, every euro counts and must be invested as efficiently as possible. Under unpredictable market situation conditions, probably no company can afford to have advertising funds wasted, especially since the effects and long-term dimensions of the pandemic are still impossible to predict at this time.
Judging by the past financial crisis in 2008, scenarios can be outlined. The 2008 advertising investment statistics initially recorded a decline in investments, followed by slow and steady recovery over the next few years. At the time, businesses responded with fear and dropped all investment in advertising at the beginning, and immediately after this, advertisers reallocated funds into channels which have proven to be most cost-effective. Digital advertising has therefore taken off thanks to the crisis and established itself as one of the key communication channels over the past five years. If we consider history, then we can expect this crisis to put digital advertising first in virtually all sectors.
In the third and fourth quarters of the financial year, we will see more clearly how consumer buying behaviour has changed permanently and what the effects of the pandemic on the economy are. Companies that will recognise this period as an opportunity for (digital) transformation and the introduction of new solutions, services and products tailored to the consumer in the new reality will certainly come out stronger from this period.