The quarantine and the major restrictions imposed on mobility are changing consumer behavior and the web remains the only window on the world. The time has come to react and take advantage of this period to re-evaluate the importance of online commerce and take your business on new paths.
The Covid-19 pandemic is an event of historical and unprecedented importance for our hyperglobalized economy. At present we are forced to navigate by sight making decisions based on the contingent situation and without having enough information to be able to plan our activities. The good news is that ecommmerce and coronavirus can coexist.
Crisis and opportunities always go hand in hand and, despite the enormous difficulties in many sectors, there are several economic operators who are taking advantage of this moment to start virtuous digitization processes. Even if we do not know how consumers will react and to what extent the next economic crisis will be, we can certainly say that the strong restrictions on personal freedom are changing purchasing habits and methods, pushing more and more people towards online shopping (on this point is interesting the article published on Forbes.com ” Coronavirus and shopping behavior “).
According to the incoming news, most e-commerce operators are experiencing massive growth in demand and even consumers who are usually unwilling to shop online are converting quickly. The increase in orders is having repercussions on the entire logistics and shipping system. Even the Amazon Prime service has suffered as a result of an extension of delivery times. The delays mainly concern non-essential goods, this is because the operators in the supply chain are giving priority to the delivery of basic necessities, as stated in the notice on Amazon.co.uk:
We are prioritizing the products customers need most. Some items may not be available.
eCommerce and coronavirus: is it possible to grow during a pandemic?
The answer to this question is yes. What matters is to look in the right direction with initiative and adaptability. At the moment, however, we must take note that not all online stores are browsing gold and for those specializing in the sale of outdoor items, parties and other products related to outdoor activities, it is not an easy time.
However, edge cases aside, the coronavirus is giving ecommerce wings . According to the data provided by Triboo (a group that operates in B2B e-commerce and takes care of the online activities of 130 brands) in this period there is a strong surge not only in online sales, but also in digital marketing activities in general . speak for themselves and between February and March 2020, online sales in Italy recorded a significant increase compared to the same period in 2019, especially during weekends. Only on the day of March 8, for example, ecommerce sales marked a + 90% compared to the same day of the previous year.
Impact of coronavirus (COVID-19) on e-commerce in Italy 2020. Published by Statista Research Department, Apr 3, 2020.
Among the sectors most affected by the sales boom are above all the food, household items, pharmaceuticals and personal care sectors.
The Google Ads thermometer: what are the growing sectors
Google search trends and search network campaign performance are perfect tools to get an overview of the health of different markets. Wordstream.com published the results of a study conducted in the United States that analyzed data from 15,759 companies to provide an overview of the effects of the pandemic on Google Ads campaigns . Among the most important negative indicators are the decrease in the number of clicks on the ads and the decrease in the conversion rate.
How COVID-19 has Impacted Google Ads Results for 21 Industries [Data] – Wordstream.comThe trend of the graphs shows that the coronavirus has influenced both user searches and online purchases, moving people’s curiosity and needs elsewhere.
Fear of contagion has prompted users to purchase more immune defense supplements and drugs , boosting the profits of medical companies and the pharmaceutical industry. In particular, it was registered:
- a 47% increasein conversion rate for pharmaceutical search ads ;
- a 24% increasein conversion rate for medical search ads .
The Finance sector , which is normally the one with the highest costs per click and the most expensive keywords, has seen a decline in CPC and an increase in CTR and conversion rate since the beginning of the pandemic. Fear of a new economic crisis has pushed up searches for information and financial advisory services on the net.
Another noteworthy sector is that of beauty and personal care which, again in the United States, has recorded a lowering of costs per click and an improvement in conversion rates.
People stuck at home are increasingly searching for and buying beauty, body and personal hygiene care products online because they prefer to avoid public places such as salons and beauty centers, the data, even if referring to the American market, is particularly important for Italy where hairdressers and beauty salons were closed by decree .
Finally, among the positive protagonists, the on-demand media sector cannot be missing . Social distancing and quarantine are increasing the consumption of hours per day devoted to watching movies and TV series with conversion rates that in the US have seen increases of 102% in Google Ads search campaigns.
Facebook Ads campaigns: what to do and how to react
Various data also arrive from the Facebook Ads platform to understand how to act during an emergency. Let’s say right away that the technology built by Facebook has never been so useful as in this moment in which relationships in the “real world” are reduced to the bone to prevent the spread of Covid-19 . In the countries most affected by the Lockdown, Facebook, Whatsapp and Instagram are reaching levels of use never seen before, however the closure of many companies and activities could also have different consequences for the Manlo Park social network .
The economic crisis born of the pandemic, the consequent rise in unemployment and the fall in consumption could have long-term repercussions on overall advertising spending, says Laura Martin , senior analyst at Needham & Company . The collapse of sectors such as tourism, travel, entertainment will have repercussions on the entire system and will even reduce Facebook’s advertising revenues. In short, at least in the short term and barring changes in direction, there will be a drastic reduction in competitionfor those who advertise on Facebook and Instagram with a consequent reduction in CPM (Cost per Thousand Impressions) and CPC (Cost Per Click). The trend is already clearly visible: the owners of restaurants, bars and all the companies in the tourism sector have already put the countryside on hold in Italy. Furthermore, Facebook has on its own initiative disabled campaigns with a “drive to store” objective to encourage compliance with government directives that provide for restrictions on people’s mobility.
