Navigating Your Marketing Strategy During COVID-19
Today is March 20th and it's tough to have a conversation that doesn’t circle around COVID-19. This crisis is changing the world day by day and showing few signs of slowing down.
- Three months ago, the first few cases of a novel-coronavirus were emerging in central China.
- Six weeks ago, humanity gave the virus its name: COVID-19.
- Now, the US has declared a state of emergency, the U.S. prepares to deploy Naval Hospital Ships, Californians are ordered to stay home, and airline executives report lower flight demand now than post-9/11.
With talks of extended social distancing, large scale quarantines, and significant economic repercussions, how should this situation be understood and acted upon? Things will change; the question is what and by how much?
1. Expect an Extended Shift in Consumer Activities
Any competent marketer will tell you that understanding how your product fits into your customer’s life is critical in guiding your marketing strategy. But now, your customer’s life is changing, and if possible, so should you.
"Social distancing" is the term dominating nearly every public discussion around COVID-19. People are urged (or mandated) to work from home, stay at home, and avoid social gatherings. Ultimately, this means spending more time indoors in small groups of people. Currently, we are seeing and expect to continue to see:
- A shift from in-person activities to digital ones
- An increase in time spent with family and household
- An increase in overall screen time, across all devices
In the short-term, this will benefit sectors that operate in the digital realm such as telecommunications, digital content, and digital experiences. This will also increase the demand for stay-at-home and delivered-to-door products. We expect the leading consumer value propositions of the coming weeks or months to be:
- The ability to socialize digitally
- The convenience of not having to leave the house
- A supplement to a now limited part of everyday life
Conversely, this will negatively impact any areas that heavily rely on in-person experiences, obvious ones being hospitality, retail, upscale dining, in-person entertainment, and event services.
2. Adapt Your Customer Acquisition Strategy
We expect shockwaves to be felt through traditional customer acquisition channels for the coming months. The primary drivers being:
- Growing uncertainty around economic health
- A shift in consumer way of life
- Supply and logistical disruptions
Brands benefited by ‘social distancing’ may see a lift in acquisition and engagement, though most other brands will likely see the opposite.
Brands that can adapt to the situation will benefit from doing so. Adjusting your value propositions and outreach methodology to address the situation on everyone's mind will boost engagement metrics. We advise shifting short-term positioning to:
- Associate your value proposition with the at-home and/or digital experience.
- Get creative in messaging to address the situation in your brand's voice.
- Lower friction to conversion by offering lower-priced options and prioritizing existing traffic (through CRO).
On paid advertising platforms such as Facebook, Google, and Bing, we are observing a slowdown in efficiency as uncertainty around financial health rises. Alternatively, agile brands can take advantage of this opportunity to revamp messaging strategies and fill prospecting funnels while CPMs are low. The trends we are currently observing with our clients vary by industry but can be generalized as:
- Decreasing ROAS
- Decreasing CPMs
- Decreasing CTR
- Increasing Clicks
3. Get Conservative on Supply Chain and Logistics
Supply chain disruptions have been a major concern since the start of China's outbreak in January. Supply chains with heavy exposure to China will take the brunt of the short-term impact, disproportionately affecting products and companies that are lower on the ‘totem pole’ as manufacturing ramps back up.
We also suspect that many manufacturers in China with the ability to pivot away from producing non-essential goods to producing medical supplies and equipment are currently doing so, or are planning on doing so. Though China seems to be in the recovery phase of their COVID-19 event, we expect most supply chains to be impacted through at least Q2 and Q3. Larger organizations with leverage over their suppliers will see recovery sooner than smaller organizations with less priority.
Staggered behind China, U.S. manufacturing is being significantly disrupted as GM, Ford, and Chrysler-Fiat halt production and the U.S. enacts “war-time” manufacturing policies focused on supporting front-line medical infrastructure.
We advise companies producing non-essential goods with low leverage over their suppliers to immediately adopt a more conservative outlook to mitigate the risks of a significantly disrupted supply chain.
The Bottom Line
It’s hard to tell how long it will take for the world to come out of this event. As of now, there does not seem to be much of an exit strategy from global policymakers aside from working full-speed ahead on a treatment or vaccine. Optimistic timelines focused around ‘successful’ social distancing, mitigation, and treatment forecast 2-4 weeks of significant disruption. Less-optimistic timelines focused around extended social distancing and vaccination forecast 6-18 months. At Half Past Nine, we are recommending our clients to prepare for a minimum of 2-3 months of significant supply and demand-side impacts.
The fact is the longer we stay in a ‘shelter-in-place’ mode, the stronger these trends will become. Time will tell whether this is an event that blows over quickly as a blip in our long-term horizon or ends up with more severe and prolonged repercussions.
Now is the time to focus on having the cash flow to weather an extended event, ensuring outreach strategies match supply and demand concerns, and preparing to capitalize on the eventual rebound.
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Facebook Ads Bidding Strategies can either make or break your advertising campaign. If you've been struggling with getting the best results, understanding the benefits and drawbacks of each strategy can save you both time and money. The right bidding strategy can help you reach your target audience more effectively and get the most out of your advertising budget.
Each bidding strategy has its unique benefits and challenges. Some are great for maximizing visibility, while others prioritize cost-efficiency. Choosing the right one depends on your specific goals, whether that's more clicks, better engagement, or higher sales. Knowing the pros and cons of each strategy will help you make informed choices that benefit your business.
This article will guide you through five key Facebook Ads Bidding Strategies. You’ll learn about their benefits, drawbacks, and how to pick the one that suits your campaign objectives. By the end, you’ll have a clear understanding of which strategy will help you achieve your advertising goals effectively.
Understanding Facebook Bidding Mechanics
Facebook bidding is essential for advertising success. It involves auctions where advertisers compete for ad placements. Understanding key elements like Auction Dynamics and Different Bidding Strategies is crucial.
Auction Dynamics and How Bids Work
In Facebook's auction, ads compete based on bids, estimated action rates, and ad quality. Bid represents how much you're willing to pay for a specific action (like clicks, views, or conversions). The Cost Per Result adjusts based on competition.
Bid Cap lets advertisers set a maximum bid. This ensures spending control but may limit campaign reach. Meta bidding strategies, like Lowest Cost and Target Cost, help optimize for specific goals, balancing cost and performance.
Factors influencing the auction include:
- Bid amount
- Ad relevance
- Estimated action rates
Exploring Different Bidding Strategies
Advertisers can choose from several Facebook bidding strategies. The Lowest Cost strategy aims to get the most results for the lowest price but may lack spending control. The Cost Cap strategy helps maintain an average cost while driving results.
The Bid Cap strategy is useful for high-control needs, letting you set the max bid per action but it might restrict delivery. Target Cost aims for a stable cost per action, ideal for steady budget planning.
Choosing the right strategy depends on your campaign goals, budget, and desired Cost Per Result. Evaluate each option to find the best fit for your needs.
Implementing Bidding Strategies for Campaign Success
Successful implementation of bidding strategies can drive better results and optimize ad spend. Key factors include setting appropriate bid caps, maximizing returns using ROAS goals, and balancing volume and value.
Setting the Right Bid Cap for Your Campaign
Setting the right bid cap involves determining the maximum amount you are willing to pay for a result. This ensures costs don't exceed the budget. Bid caps can help control spending and improve efficiency.
- Analyze past performance: Review historical data to identify the highest bid that achieved desired results.
- Adjust as needed: Be flexible to change bid caps based on real-time campaign performance.
- Consider the competition: Higher bid caps might be necessary in competitive markets.
Maximizing Returns with ROAS Goals
Use the Return on Ad Spend (ROAS) bid strategy to drive maximum returns. ROAS goals ensure that every dollar spent on ads generates a specific amount of revenue.
- Calculate target ROAS: Set a realistic ROAS based on past campaigns.
- Monitor and tweak: Regularly check ad performance and adjust your ROAS goals to meet revenue targets.
- Balance quality and cost: High ROAS might limit reach, so find a balance between cost and quality.
Balancing Volume and Value in Bidding
Balancing volume and value helps achieve the right mix of reach and profitability. Consider using both Highest Volume and Highest Value strategies.
- Highest Volume: Bids are set to get the most conversions, good for awareness and large-scale campaigns.
- Highest Value: Focuses on getting the highest-value conversions, suitable for targeting high-value customers.
By carefully implementing these strategies, advertisers can meet their campaign goals effectively.
5 Facebook Bidding Strategies: Benefits, Drawbacks, and Selection Guide
Static ads and dynamic ads serve different purposes in the world of marketing. Static ads are simple and stay the same at all times. They are easy to create and can be effective for straightforward messaging. But dynamic ads offer customization, changing their content to fit the audience's preferences and behaviors.
Dynamic ads might seem complicated, but they bring better results by targeting specific groups with personalized messages. This means higher engagement rates and more conversions. Static ads, on the other hand, are less effort to produce but may not capture attention as effectively.
Deciding between static and dynamic ads depends on the brand's goals and resources. Each has its strengths and can be powerful if used appropriately in a marketing strategy.
Understanding Static and Dynamic Ads
Static ads and dynamic ads serve different purposes in digital marketing. Each has unique features and benefits that cater to varied marketing needs.
Exploring Static Image Ads
Static image ads are straightforward. They are typically still images that do not change once created. These ads are ideal for conveying a clear, unchanging message or brand image.
A static image can include text, graphics, and logos, and is often used on websites and social media platforms.
Advantages of Static Images
- Consistency: The message remains the same, which can be useful for brand recognition.
- Simplicity: They are simple to create and often cost less than dynamic ads.
- Predictability: Once the ad goes live, what you see is what you get.
Unpacking Dynamic Advertising
Dynamic ads are more complex. They can change content in real-time based on user data and behavior. Unlike static ads, dynamic ads can alter images, text, and calls to action depending on who is viewing the ad.
Benefits of Dynamic Ads
- Personalization: Content can be tailored to each user, potentially increasing engagement.
- Flexibility: They can show different messages to different audiences without creating multiple ads.
- Efficiency: They adapt to user preferences, making the ad experience more relevant.
Comparative Analysis and Use Cases
Static and dynamic ads offer different benefits and limitations. This comparison will help you understand where and how to use each type effectively in your marketing strategy.
Static Images Vs. Videos
Static images are simple and quick to create. They load faster than videos, which is great for mobile users and slow internet connections. They allow for clear, focused messages without distractions.
Videos, on the other hand, capture attention better with motion and sound. They convey more information in a short time. Videos are more engaging and can demonstrate products or services in action.
Leveraging Opportunities for Static Ads
Static ads are useful in various scenarios. Billboards are a great example, as they need to be read quickly. Print ads in magazines and newspapers also benefit from static images. Online banners are often more effective when static, as they load quickly and are less intrusive.
Static ads are best when the message is straightforward. They work well for short calls to action like "Buy Now" or "Sign Up." Visually, they should be clean and uncluttered to convey the message quickly.
