The consequences of COVID-19 for the advertising industry
As the effects of the economic impact of COVID-19 crisis continue to spread and spill over the advertising industry, advertisers are facing the challenge to adapt the advertising message and tactics. At the end of March, Gartner reported that 65% of chief marketing officers (CMOs) surveyed were planning to cut marketing budgets as a result of business disruptions from the coronavirus. The survey showed that 34% of businesses expect “reduced levels of business operations” due to COVID-19.
Agencies will be required to change their advertising method. The traditional out-of-home advertising in malls, at bus shelters, will be fast replaced by in-home advertising. The lockdowns will keep people more distanced and inside their homes. Hence, the best ways to reach the audience will be to take your advertising message to them indoors.
Adzze has been re-imaging the advertising tactics and adapting to a more sensitive message. The operation team has working on extending its capabilities to offer advertising concepts that can reach the consumers at their safest place: at home. One of these methods uses pizza boxes as advertising space. Think of this as small moving billboard that that consumers will receive in their home. Surveys indicated that this type of tactics can trigger an 80% recall rate (8 out of 10 individuals recall seeing an ad on the pizza box) with an average ROI of 150%. This means, for every 1 dollar the advertiser invested in a pizza box advertising campaign, they received at least additional 2.5 dollars of sales. For more details in the article Estimating the ROI of Pizza Box Marketing.
New York City is the de facto commercial capital of the world. The city makes up under 1% of the US land area but is responsible for about 8% of its GDP. This is where a majority of America’s Fortune 500 companies have their head offices. As such, competition for any type of business in the city is harsh. For this reason, advertising agencies NYC have to think outside the box to survive.
Why advertising agencies NYC have to innovate
NYC is the most advanced city in terms of business processes and operations. This implies that traditional strategies in any kind of business do not amount to much. For example, the advertising industry is critical for businesses to ensure that their brands are visible enough to the target audience. In a place like New York, businesses exploit every avenue available to ensure that customers see their products.
For example, Route 101 in New York is popular for legendary billboards. The highway’s users are wealthy entrepreneurs and employees who work in New York’s budding tech sector. However, a space on one of these billboards would cost more than $30,000 a month. Digital billboards and all manner of alternative advertising media fills up areas like Time Square.
As such, advertising agencies NYC are having to innovate and come up with novel advertising ideas that are unconventional yet effective. One of these innovative ideas is called ambient marketing. Ambient advertising utilizes unconventional techniques of placement of ads. Such technique places ads at places where the audience least expects.
The Ad industry will focus on the Stay-at-Home vehicles
Recently the Interactive Advertising Bureau surveyed nearly 400 media buyers and brands. The results were surprising: 74% think the coronavirus pandemic will have a larger impact on their advertising spend than the 2008 financial crisis. According to the President of Interactive Advertising Bureau, David Cohen, “Typically marketers will press pause for a moment, take a breath, assess the situation, replay and reevaluate.”
The use of mobile OOH methods will most likely experience more decline in the coming months, given the fact when the economy re-opens, people will still be cautious and stay more at home. Mobile advertising using trucks, buses and others will be fast replaced by in-home advertising. The impact of COVID-19 has kept normally mobile citizens inside their homes. Hence, the best ways to reach your audience and maintain brand visibility will be to take your products and services to them indoors, as it will be clearly unprofitable to place adverts on advertising vehicles that no one is seeing.
Ambient marketing is ideal for targeting the exact audience
One of the biggest challenges for out of home (OOH) advertisers is that the audience rarely pays attention to their ads. For drivers, they would rather keep their eyes on the road than check to see what a billboard is saying. Even if some see what the billboard says, they will not pay attention to understand the contents.This is one challenge that in the hand marketing has successfully avoided.
According to this analysis, ambient marketing puts the ad in the hands of the target audience. For example, an advertiser can design an ad and put on a door hanger. The door hanger is placed strategically on the handle of the door such that it is the first thing that one sees when reaching for the door. While this might seem a little guerilla-ish, it is the best way to capture the attention of the target audience. As a result, such an ad campaign generates high direct actions leading to increased sales.
Door Hanger Marketing and In-Home Advertising
The business of marketing is changing in the age of COVID-19. Whether its effects are brief or prolonged, marketers need to be nimble in these challenging times, and pivot when needed while optimizing performance throughout the crisis.
Advertiser will have to find alternative channels to reach consumers and many already pivoted to In-Home Advertising using food deliveries. This model represents the new market trend in advertising as an alternative to traditional OOH advertising channels. As delivery orders are being fulfilled, active advertising is on-going simultaneously. Ads are placed on pizza boxes and shopping bags and delivered into the hands of customers. The amazing part is that the ads enter people`s homes and stays in their faces.
New age advertising methods as seen at Adzze, will not only attract more clients but will effectively engineer the on-boarding of major businesses as many begin to see the tremendous benefit of in-home advertising. With innovative methods such as ads placement on door hangers. This concept guarantees definite impressions of your brands on prospective customers because our approach delivers the brand directly into the hands of your target audience at their homes.
Your advertisement is printed on door hangers and distributed to the households in the zip code or areas that were selected according to the marketing campaign. Adzze technology solutions are used to target demographic profiles such as income, age, ethnicity, marital status, so that we hit your exact target-market ensuring the door hanger delivery. In addition, the segmentation method enables to evaluate annual spend criteria so that you have a better insight into the spend behavior of the target audience. The consumers will be positively surprised if the door hanger brings them value as coupons or discounts. The advertiser must partner with the capable door hanger distributors to ensure to track the door hanger delivery to the targeted addresses. Typically, the return of the Door Hanger Advertising investment is 3x, this means for every $1 invested, the advertiser receives $3 back.