Pandemic, coronavirus, change, and uncertainty have been the key things the world has been facing for some months. Sodium glutamate has been in everyone’s daily life since around the end of February 2020. Covid-19 had a 360 ° impact and caused a paradigm reversal for everyone, from the individual to the community, not to mention businesses.
Many have had to suspend their business temporarily, and the luckiest have managed to move their operations online. Some, unfortunately, were forced to close permanently.
We are now facing a new phase. We gradually see a return to shared and public life, a new “normal.” Companies are preparing to restart following specific safety precautions: another adaptation that the activities have to face.
It is still unclear how we will get out of it: the forecasts are many and different.
In digital advertising, however, it is dangerous to base one’s strategy on personal predictions. If you want to understand how this period will affect the market, it is good to have data already. And where will we find this information if not in the largest advertising market in the world?
Before reading, if you don’t have a lot of experience with Google Ads, CPC, and conversion rate, we recommend that you take a look at our article on the PPC campaigns.
Long-Term Impacts
How has the coronavirus affected research and the PPC market in recent months?
As anticipated in the research by Seozoom, the exponential increase in free time and the instability that characterized this historical moment led people to find out and search for what they needed online. Google searches increased by 40% globally.
Instead, according to Word Stream data, PPC ads on search engines in March and April fell by almost 7%, while conversion rates dropped to -21%, nearly as high as if we were all on vacation.
The element highlighted is the paradigm shift in the use of services. For example, the sports and fitness industry has seen an increase in organic searches, but businesses related to this field have seen a steep drop in their conversion rate. With the gyms closed and the impossibility of going out, people have dedicated themselves to homemade workouts.
Even concerning the house and the garden, organic searches recorded a predictable increase (we are still at home, we will have to commit the time somehow!) While Google Ads market showed a pause in March, linked presumably due to the economic uncertainty of the users. Also, in this case, the DIY wins.
However, three mismatches between organic and paid search catch our attention:
• Automotive sector:
Organic interest in the industry has grown as if users wanted to start over with their passions once the pandemic is over. Simultaneously, Google Ads records a decline of 30% (but it is difficult to attribute this to the COVID-19).
• Finance:
With markets in distress, we can confirm the decline in organic searches for insurance and physical banks. Therefore, it is surprising that financial services (including investments and insurance) have seen their CTR increase between 23 and 30%. The average cost per click, generally very high in this sector, has seen a collapse.
• Fashion and fashion shows:
Public safety and strict restrictions on gatherings have led to the cancellation of shows worldwide: search volume for live entertainment decreased by 24% and conversion rates by 30%. However, in this period, users have not given up on keeping themselves informed: they have researched products to buy online and fashion advice. Organic searches are seeing a surprising increase.
In some cases, however, the change in habits, priorities, and needs found in organic search also sees a parallel in the results of pay-per-click ads.
Easily predictable, in the Health and Medicine sector, many advertisers have seen ad clicks and conversion rates significantly higher than usual. We can confirm that it is by the standout of organic research on the sale of pharmaceutical products online.
As mentioned for the fashion industry, people haven’t given up on their looks – the personal care market has seen a dramatic increase in searches and a boom in SERPs with lower CPCs and much higher CVRs.
Sofa and Netflix? The basis for surviving the boredom of imprisonment! In-home entertainment consumption has predictably boosted organic searches across all categories, and on-demand media conversions are skyrocketing.
Short-Term Impacts
The sectors that are suffering the most
Also, in this case, we can find some correspondences, but less optimistic.
The sectors experiencing an inability to provide the service are experiencing a decline in interest in organic searches and negative results in Advertising campaigns.
The real estate sector suffered a notable meltdown, especially Real estate development, and construction saw a decline in conversion rates.
There is, however, a significant “but,” real estate agents and brokers see a 30% increase in conversions. Consumers are likely going to rely on a professional agent to make an appointment in the future.
Bars and restaurants were heavily affected during the social isolation. People have turned to home cooking during this period. While many businesses have switched to delivery and takeout services, search ad impressions have fallen by 18% for restaurants and 26% for bars and nightclubs.
Far from optimistic views for the travel industry: Advertisers struggle to convert. Simultaneously, searches for flight cancellations, delays, and restrictions increased, making the sector’s announcements more exposed.
Keep Calm and Campaign On
By rummaging through the data relating to organic research, it is possible to trace a common thread: people have changed the method of using many products and services but have not given up on normality.
Although coronavirus has all confined us, none of us have stopped consuming. As we have seen, some sectors have increased their turnover (does “toilet paper” tell you something?) While others have had the opportunity, as never before, to make room for themselves.
The mandatory nature of “smart work” has led to a 35% increase in clicks on search ads for office items, with conversion rates up 41%.
And how many things have we ordered online in this period? Those involved in packaging and shipping supplies saw their search ad conversions double (+ 123%).
Covid-19 has severely limited traditional retail and made e-commerce essential for most businesses.
However, small businesses advertising online performed exceptionally well in April. Their major competitors, like Amazon, struggled to cope with the influx of orders. They pulled most of their ads from Google.
Help has also come from the big names on the web. Google has set up advertising credits for small and medium-sized businesses during this period.
Facebook also made itself available to companies, although it probably did not anticipate a significant drop in advertising costs.
The top management team is overly optimistic about you and your abilities. The chairman of the board even calls you the “captain of the dream team.”
Pareto analysis has far-reaching implications for small and medium-sized enterprises (SMBs), although the idea behind it is simple but profound: 80 percent of results come from 20 percent of efforts.
Conclusion
The idea of reducing the budget for your PPC campaigns could be tempting during a crisis, but in reality, never before is it necessary to strengthen your online presence and try to attract new customers.
It is essential to stay updated on dynamic market conditions: Google has created a Google Trends page dedicated to Coronavirus to understand better the context in local markets and users’ moods.
At the same time, it’s good to keep an eye on performance metrics and prepare for any changes.
It may be time to change the budget dedicated to a campaign in favor of better performance, add new negative keywords to optimize ad delivery, or think about new campaigns to compensate for unique user needs.