While the time spent at home was increasing due to the coronavirus outbreak, digital content consumption also increased. In parallel with this, advertising costs decreased by 60%. The artificial intelligence technologies company SocialPeta has found a solution to this fluctuation caused by the agenda.
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ISTANBUL (TR) - The coronavirus epidemic, which started in China and affected the world, caused a change in the advertising and marketing strategies of the brands. As people started to spend time in their homes, the time they spent in digital media increased and spread throughout the day. This caused digital advertising costs to drop. According to ad intelligence technologies company SocialPeta, Facebook's ad and per-click advertising costs fell by 60%, from an average of $ 1.88 to $ 0.81 in March 2020 compared to November 2019. The economic effects of the pandemic have also cut the budget that brands have set for digital advertising. According to SocialPeta, digital advertising spending decreased by 23.5% in the past two months.
According to data released by SocialPeta, advertising spending has decreased in all regions of the world since the beginning of 2020. The highest drop was seen in North America, which is now the center of the pandemic. North America reduced digital advertising spending by 17%. The epidemic also affected click rates, and rates have declined by 17.2% since the new year. In this context, the sector that suffered the most was tourism (travel and accommodation). In the tourism sector, which had a 1.84% click rate in mid-January 2020, this rate decreased by 18.5% in the last two months due to the coronavirus pandemic.
Stating that it is possible to take advantage of this fluctuation in digital advertising costs due to the agenda, SocialPeta founder Rocks Su gave information about the ad analysis module named AdCost Intelligence, which they developed to manage the advertising costs effectively:
‘'It is very important to monitor sudden changes such as decrease in CTR, CPC, and CPM during the epidemic period. It is also necessary to analyze the reaction of the market. In this process, as SocialPeta, we developed an ad analysis module called AdCost Intelligence to support the brands. With this module, we offer the opportunity to analyze time and cost trends and analyze CTR, CPC, and CPM trends in all countries and regions of the world, for ads placed on all Facebook-owned platforms. We also enable brands to create a reference by comparing themselves with market data. In this way, we aim to contribute to the advancement of brands in crisis situations such as epidemics with the most appropriate advertisement purchasing strategy.”
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