As the nation continues to face restrictions related to the Coronavirus pandemic, communities and businesses are being affected more and more each day and CMOs and agency executives are wondering what impact COVID-19 will ultimately have on their respective industries.
While this unprecedented pandemic will continue to bring new challenges, many feel it is not the right time to completely cut out advertising as brands must stay connected to consumers. According to Harvard Business Review, it is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower costs than during good economic times.
“It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower costs than during good economic times.”
That being said, we are continuing to analyze trends across our platform, Axon, to understand the impact the virus has had across verticals. In a survey recently conducted by KORTX, 69% of respondents said they are looking for vertical specific guidance from vendors during this time. We are working with our clients to shift their strategies while maintaining performance amidst this economic downturn. For some advertisers, this is as simple as adjusting creative messaging. For others, it might mean swapping traditional TV buys for Connected TV buys or reducing frequencies. We are encouraging our clients to use this time as an opportunity to adjust strategies and test new ideas in order to stay relevant and connected.
In a previous post, we looked at various verticals including higher education, a national bank and a furniture retailer. Today, we’re focusing on a quick service restaurant we’ve worked with that has relied on the power of Axon since 2018. Prior to the virus outbreak, they used our product to build comprehensive profiles of current customers and prospects by combining data from online and offline properties. Through this, we’ve been able to deliver 345M impressions driving over $11 million in online sales resulting in a 5.41X return on ad spend.
As social distancing regulations were put in place, we could see that 45% of traffic driven from Paid Search and Social campaigns did not complete the purchase process after initiating checkout. To address this audience, we have been working with the advertiser to create specific offer-based creative focused on ‘grab-and-go’ options as well as immunity boosting products. This creative swap has led to a 13% decrease in drop-off rate and KORTX’s current return on ad spend continues to surpass the client’s benchmark of 1.5X.
Through this consultative approach, we have been able to provide timely guidance and rationale supported by data to make swift adjustments while maintaining a high-level of performance. As agencies and brands continue to adjust media strategies, first-party owned data is now more important than ever. Data can help brands feel confident their ad dollars are being spent effectively and ultimately making an immediate impact on sales. Not sure your data capture strategy is fully up to speed? Reach out to us today – we’re standing by and ready to strategize!