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The global Coronavirus Pandemic has slowed the german economy down, which has been accompanied by massive sales losses for large parts of the retail trade. Even the slow easing of regulations will not lead to a short-term recovery in the economic situation of many companies. In this situation, online trade has not only been able to prove itself as an alternative sales channel, but has also emerged from its shadowy digital existence. The new circumstances continue to offer great opportunities for digital marketing.

Paid Media plays an outstanding role in addressing the right target groups. As experts in the field of performance marketing, we have identified the most important developments and trends for you by analysing our customer campaigns on the channels Google Search, Google Display Network (GDN) and YouTube. All statements refer to paid search, as they usually have a consumption-related background.

Our findings do not take place in a vacuum: In recent weeks, customers have already reacted to the altered situation by reducing or increasing their budgets; the same applies to the competition. These effects are reflected in the analysis as well as adapted user behavior.

Google Search:

With the start of the lockdown and consequent restrictions on leaving the house, impressions of paid search ads across our cross-industry client portfolio declined by an average of 29 percent. It was not until the first week of April that we saw a resurgence. One explanatory approach is that the consumer behaviour of consumers had clearly clouded over from the first days of the strict Coronavirus lockdown measures. This was because the volume of brand-related and transactional search queries in particular had fallen significantly. Informational searches on the nature and course of the pandemic have occupied people more than consumption.

After just under two weeks, however, an initial recovery in demand can be observed. The online search is thus also a good indicator of the increased need for information in society. As a result of the falling demand while competition remained the same or perhaps even increased, click prices rose significantly in mid/late March. In April, the CPC already dropped again significantly as some advertisers temporarily reduced their budgets. This dynamic will continue until the market situation is clarified. However, this will only delay the long-term trend towards rising click prices on Google.

Another special feature that we were able to observe in our analyses is that, although the majority of all searches are still generated from mobile devices, the share of desktop searches has risen significantly from February to March compared to February. This is probably related to the increased use of laptop and desktop devices in the home office. In our experience, desktop searches convert better than mobile requests, so here too is an advantage in terms of campaign success that should not be underestimated.

When considering demographic factors, it is noticeable that the aforementioned decline in search demand was significantly lower for women than for men. The female target group still has more consumer wishes, which are also in demand during the Coronavirus epidemic.

With regard to the age demographic, the picture is not very surprising: While young users aged between 18 and 24 years show practically no change in the intensity of use, demand in the oldest segment of users aged between 45 and 64 years has fallen by almost a third. As a rule of thumb, therefore, the higher the age of the target group, the more pronounced the fluctuations in search behaviour.

Google Display Network (GDN) / YouTube:

The development in the GDN stands in stark contrast to the development in wanted ads. Impressions on display ads in the Google Ad Universe have increased significantly with the beginning of the pandemic, by an average of 37 percent since mid-March. The still high interaction on GDN campaigns can be used very well for advertisers, since at the same time the prices in this channel fell clearly, partly by 50 per cent.

YouTube is also one of the big winners of the crisis. On the one hand, the audience has become larger and the time spent on the world’s second largest search engine has increased, while on the other hand, CPTs have fallen to new lows since mid-March.

Recommendation:

Search continues to distinguish itself as the medium through which users actively disclose their needs. It is therefore more relevant than ever before, and is as indispensable a channel during the crisis as it is afterwards. Many advertisers have already adapted to the decline in paid reach and changed their strategy accordingly. But often this happens on sight, campaigns are stopped, paused and restarted. If hard campaign targets such as sales or KUR can no longer be achieved, we recommend temporarily considering alternative targets. With a focus on lead generation, valuable data can be collected now and used at a later date. Vouchers are another option for securing future sales today. Now is also the right time to advertise products and services that require explanation and to offer comprehensive virtual advice. As a brand, you remain in a position to build up a portfolio effect, i.e. to pick up and inform consumers even without sales. Because demand is still there and wants to be served over the coming months of the new normality.

The Coronavirus crisis currently poses challenges to many areas of business, but also creates new opportunities. In the Serviceplan Group’s first live session of the webinar titled “Acting Successfully in the Corona Crisis”, Verena Letzner, Managing Director of Plan.Net NEO, presented her analysis of the effects of the crisis on social media. In her expert article, she looks at the current situation in Germany and explains what questions brands should ask themselves now, and why it is worthwhile to take a look at the situation in China.

The use of social media platforms, from Messenger and video platforms to classic social media platforms such as Instagram, Facebook and others, has risen significantly. Due to the lockdown and social contact restrictions in Germany and the resulting social distancing, people increasingly use the Social Web to inform themselves, discuss and get in touch with others – including brands. This creates opportunities for brands to strengthen their market position sustainably during the crisis, however the procedure brands follow in order to do so is important. Only those brands that make a helpful contribution now will become part of the conversation and have the ability to emerge from the crisis stronger.

1. Improve people’s situation

Brands should create an offering on the Social Web that adds value to the many people who currently must stay at home. Brands can support important areas of life such as sports, health and education through their offerings, or create alternatives for activities that are restricted or completely forbidden during the lockdown phase, such as eating out together, shopping and maintaining physical social contacts.

2. Have a purpose and radiate optimism

Currently, the “Time with brands” is in a peak phase, which means that users engage more with brands on the Social Web than usual. For brands, it is important to use this time to authentically place values such as solidarity, community, care, trust and optimism at the centre of their communication, thereby increasing their brand capital in the long term.

3. Benefit from changes in media usage

Due to the withdrawal of many advertisers from the paid social sector, the advertising pressure and the competition for placements is currently decreasing. Therefore, it can be especially useful for brands to buy cheap advertising space or to get more reach for the same budget.

Five questions that brands should ask themselves now

In order to exploit the potential of social media during the Coronavirus crisis, brands now have to urgently address the question of a strong and relevant social media strategy. The following five questions provide a guideline:

  1. What role can social media play for my brand in the communication mix during the Coronavirus crisis?
  2. How do I deal with my community in times of crises?
  3. Which channels are the right ones for me?
  4. How can I establish a performance-oriented social media approach and invest my budget effectively?
  5. How do I measure my success ­– during and after the crisis?

A look towards China – Looking ahead

An interesting question is certainly what happens as soon as the lockdown in Germany eases. It is worth looking at China, where the crisis and its effects are ahead of European countries. In China, too, the social media use of various services and platforms increased significantly during the lockdown, and the personal exchange that usually takes place in shops, such as product or purchasing advice, shifted to the Social Web.

And after the lockdown phase? Social media use in China has remained high, only the daily usage time has decreased slightly again. In a survey of Chinese marketers on how they would invest budgets in the future or which fields they would use more after the crisis, most of the respondents cited the social media sector.  This shows that long-term business opportunities are seen here.

Air Berlin is descending into chaos and heading for a reputation as a kind of skid row of the air. For example, on 1 June this year, Europe’s seventh-largest airline cancelled 44 flights – just on that day – because there was either no crew available or no suitable aircraft at the departure airport. Some passengers were informed, some were not. Others were given completely contradictory information. Some were given refreshment vouchers but often they were unusable because the shops in the airport were already shut. On-board drinks could only be paid for in cash. The crew recommended that the passengers register their complaints on the Internet. Contributors to passenger forums are discussing whether it is still possible to book flights with Air Berlin at all.

The PR strategy used by the ailing airline to address this crisis is extremely interesting. Air Berlin has gone on the offensive and is stating in full page advertisements in the daily newspapers what it is doing to become more reliable. For example, it has recruited 700 new flight attendants. “As of now, don’t hesitate to expect more from us (and no, we don’t mean longer queues)” says the current campaign. I think it’s good that the airline is addressing the quality problems and has not resorted to glib phrases such as “we apologise and regret any inconvenience caused” and is instead taking a self-mocking tone. It shows courage, composure and respect for their passengers. Air Berlin is not automatically assuming that their apologies will be accepted. We are not used to this level of empathy from mobility providers.

I find the subtext of the advertising campaign strategically clever: it suggests that the airline has prospects for the future, skilfully guiding perceptions towards the subject of punctuality and conveying that it is once again flying high. For a company with an uncertain future, sitting on huge debts amounting to over a billion euros and repeatedly unable to deliver the flights it has scheduled, this is an important interim target. Recruiting 700 employees in one fell swoop indicates a future-oriented attitude. It’s not so important that the new staff members were recruited via Youtube in mass interviews. The requirements were that they were at least 1.6 meters in height, had no visible tattoos, were in possession of a passport and were able to swim. According to a report from a newspaper journalist, interviews at a hotel in Berlin resulted in the employment of every candidate. She quoted one participant who said “you’d have to be very dim not to be taken on.”

Air Berlin is relying on more than hastily recruited personnel and the power of words. The airline is marketing cheap tickets to the USA and the Caribbean at a bargain price of €399 – return flights, no less. Bookings are going very well, and indicate that the company’s PR in response to the crisis is working. At any rate, there have been attempts to manage serious crises which have had less effect. However, Air Berlin’s crisis PR also shows what PR of this nature can and cannot do because the real problem has still not been solved. Nobody knows if the company, which is making a daily loss of €3 million (!), is a holiday airline, a cut-price airline or a long-haul specialist. It remains to be seen whether it is a good idea to rely on the bitterly contested long-haul market to the USA. The crisis PR from Air Berlin is not able to throw any light on the fundamental strategic issues. However, it is a successful distraction and an effective placebo.

This article was also published in German at W&V.