Most of us have probably wonder who is making money during the pandemic?
COVID-19 has evolved into a global event impacting public health as well as the economy. These are uncertain times, and we don’t have all the answers, but what we do know now is that small businesses have felt sudden changes in their campaign performance as a result of this worldwide pandemic.
We’ve seen that global events often impact PPC performance, and COVID-19 is no exception. As businesses change their operations, people stay in their homes more, and the world reacts to a pandemic unfolding in real-time—they turn to online search and news for answers to their questions and solutions to their new needs. For some advertisers, these new searchers are driving new audiences to find their way to advertisers’ sites, and some are becoming new customers. For others, the results aren’t as great, and the strategies will need to shift.
Industries and businesses in almost every part of the world have been affected adversely, many of which have been decimated or are at the brink of collapsing due to the Coronavirus.
STRUGGLING INDUSTRIES DURING THE PANDEMIC
The biggest concern during COVID-19 is undoubtedly public health. Unfortunately, this has put some industries at risk, and those working in these industries are particularly impacted—on and off the SERP.
TRAVEL AND TOURISM INDUSTRY ARE NOT MAKING MONEY DURING THE PANDEMIC
With businesses, governments, and consumers avoiding unnecessary travel at all costs, it shouldn’t surprise anyone that fewer people are looking to book travel today. As a result, many travel advertisers are struggling to convert new searchers on their site.
To compound the issue for these advertisers, searches for flight cancellations, delays, and restrictions are at an all-time high, making their ads more exposed to curious searchers.
BARS AND RESTAURANTS INDUSTRY
With many communities closing dine-in restaurants and bars, these small businesses will be hit hard during our time in social isolation. While many are learning to shift to delivery and take-out services, they’re already hard-pressed finding success on the SERP this past week.
LIVE ENTERTAINMENT INDUSTRY
Public safety and strict limits on group size have performers and venues canceling shows across the globe. As a result, search volume for live entertainment has reduced by 24% and conversion rates have fallen 30%.
I know too well that many large conferences have either canceled, postponed their events until the fall, or are attempting to host a virtual event in place. Unfortunately, many businesses rely on event marketing to fill their marketing funnel so these event cancellations will have ripple effects to other businesses, as well. Since the COVID-19 outbreak at the end of February, event marketers have noticed a 33% reduction in conversions as more events continue to cancel.
SPORT AND FITNESS INDUSTRY
Major sports leagues and rec leagues alike are canceled for the foreseeable future. As many communities increase their social distancing efforts, many more gyms are due to close and those that are open will see fewer new members walk through the door. All said, many verticals tied to sports and fitness are seeing strong declines to their conversion rate.
A notable exception is that sports programs (online and offline) and sports camps have gained significant uplift in the past few weeks as many begin to plan to get out of the house.
BUILDING AND CONSTRUCTION INDUSTRY
A sudden economic downturn and worksites being closed put an unexpected damper in the building and construction industry. As future projects begin to stall or get delayed, prospective clients are becoming less likely to convert, as well. Recent timing is poor, as seasonal advertising costs in the industry are already beginning to rise.
INDUSTRIAL AND MANUFACTURING INDUSTRY
As manufacturing operations are slowed, we’re seeing PPC campaigns for manufacturing and industrial goods are also impacted. Costs per click have increased 5% and conversion rates in the industry have decreased modestly, but advertisers are hurting from a 13% decrease in search traffic.
Unfortunately, these industries are not making money during the pandemic and this is why our global economy is critical during uncertain times.
WHAT DOES THE MARKETING DAMAGE LOOKS LIKE
Europe’s airlines are expected to lose an estimated $76 billion in passenger revenues in 2020 due to the travel bans cause be the epidemic.
Hotels across the US are seeing unexpected cancellations and closures and 4 million people employed in the Hotel Industry could lose their jobs.
The Fashion Retail industry has also taken a massive hit because of the Coronavirus, with stores closed down to maintain social distance, sales are at their lowest and millions could lose their job.
It’s an unfortunate state of events that are currently looming over the entire world, however, to make the best out of a bad situation, there are a few industries that can use these circumstances for their benefit and have seen a soaring growth due to the pandemic.
These industries have helped people find alternatives to their daily functions whilst maintaining social distance and staying at home.
BOOMING INDUSTRIES DURING THE PANDEMIC
Surprising or not, there are some businesses are experiencing increases across metrics during the time of this pandemic. the following businesses are proven to make money during the pandemic:
NON PROFITS AND CHARITIES
times of crisis, we often see the best in people, and that’s even true on the Google SERP. As COVID-19 has spread, non-profits and charities have seen:
- A 10% increase in search ad impressions.
- A 23% increase in search ad conversions.
- A 20% increase in search ad conversion rate.
Google Ads does support a number of Google grant programs to allow non-profits to advertise for free, but keeping them in compliance is often difficult.
HEALTH AND MEDICAL INDUSTRY
Unsurprisingly, many of us are turning to search for information on how to protect ourselves and our communities. As users turn to the stores and the SERP to purchase everything from over-the-counter painkillers to vital medication, many advertisers are seeing increased ease in selling their products online, with ad clicks and conversion rates both significantly higher than usual.
BUSINESS MANAGEMENT INDUSTRY ARE MAKING MONEY DURING THE PANDEMIC
Google’s providing additional advice and resources to help small businesses manage through these uncertain times, particularly with setting up employees to work remotely and crafting continuity plans. It looks like many advertisers in the space are set up to help, too. Overall, business management searches grew by 23% since February 23.
- As people prepare for remote working, office supplies became a sudden breakout industry. Searches for office supplies increased 90%, paid search ad clicks increased 35%, and search conversion rates increased 41%
- As traditional retail has shifted focus to operating online, packing and shipping supplies more than doubled their search ad conversions (up 123%) and search ad conversion rate (up 107%).
The markets may be performing poorly, but it looks like now more than ever searchers are looking for experienced help. In an industry that normally has some of the most expensive keywords and a high cost per click, we’re seeing CPCs fall and relieve some pressure from a normally competitive industry. Many are also noticing increased CTRs and CVRs, as well.
BEAUTY AND PERSONAL CARE INDUSTRY
Many fast-moving consumer goods (FMCG) have been in high demand for the past few weeks. People are searching for products like soap and hand sanitizer, as well as seeking more self-care in these hard times. We’re noticing a 41% increase in searches for beauty and personal care. Many of these verticals are seeing business boom on the SERP with lower CPCs and much higher CVRs.
As many of us practice social distancing, we’re consuming more entertainment at home. While most entertainment advertisers are picking up the increased demand and driving a few extra conversions, on-demand media has skyrocketed and doubled its conversions in the past few weeks. This industry is expected to increase even more for the next few months. Therefore social media is an industry that makes money during the pandemic and is a good time to invest in it.
THE GREETINGS, GIFTS AND FLOWERS INDUSTRY
Social distancing is a lonely experience, and it’s difficult to maintain our connections for what may be weeks or months apart. Small gestures can mean even more throughout the COVID-19 pandemic, and advertisers who are wise enough to advertise on Google are seeing some great results. Over the past three weeks, since the coronavirus escalated in the US:
- Searches for cards and greetings have seen a 15% increase in conversion rate.
- Searches for gift baskets have seen a 30% increase in conversion rate.
- Searches for floral arrangements have seen a 43% increase in conversion rate.
SOME COMPANIES ARE DOING EVEN BETTER DURING THE PANDEMIC
Furthermore, there is some companies that are making even money during the pandemic.
Workplaces have mandated that employees work from home and schools and universities have shifted fully to online teaching due to which the usage of apps that cater to Video communications and offer conferencing services have plummeted. Zoom video has shown a 78% quarterly sales growth and the user number have surged rapidly in the past few weeks. Students and employees are relying on it completely until the current situation gets better.
The usage of online delivery services has also seen an upswing since the outbreak. People have been asked to maintain social distance, be quarantined and many parts of the world are going under complete lockdown to control the pandemic. The services are being used so much that they’ve become overbooked. Amazon Fresh is hiring 100,000 positions across the US and trying to get grocery orders to customers quickly.
Since people have a lot of downtime due to staying at home, media service providers are also seeing rapidly increasing profit. Revenue in this industry is expected to amount to $25.9 billion this year. Netflix, the biggest player in the streaming space, is seeing a boost in subscriber growth with an expectation to see an increase of 7 million subscribers this year.
There has also been an upsurge of online gamers. Steam, a video game distribution service has had an influx of online users to the point that the numbers have become record-breaking and surpassing 22 million concurrent users.
The situation that the whole is unanimously facing is painful and heartbreaking to say the least. My thoughts and prayers go out to each and every individual affected by these critical circumstances. I would like to urge all of our respected users to together play our part in helping overcome this pandemic by playing our parts.
Stay at home and maintain social distance. I believe that now more than ever we need to do as much as we can to help each other through these crises. At Smai digital we have always been encouraging in taking steps towards the online industry however now more than ever.
Online businesses are currently the only that consumers have access to due to social distancing and lockdowns hence we are providing excellent packages to businesses and people who want to start up.
By using the right marketing strategies and making a statement on the digital media you to could use the prevailing situation to your benefit and maximize their profits. It is the ideal time to make a presence in the digital world and Smai will make that extremely simple and highly advantageous for you. By using Smai’s digital marketing services you will be able to successfully generate growth for your business.