What is Coronavirus and How it is Affecting Digital Ads Budgets?

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As COVID-19 virus continues to sweep the world, the digital advertising industry is keeping an eagle’s eye on what impact can Coronavirus outbreak has on ads budget. The global crisis and death toll surrounding the spread of novel coronavirus has led to a rippling effect across health, entertainment, and businesses worldwide. It is projected that the impact of this pandemonium will be multi-dimensional and far-reaching, especially for PPC advertising companies and publishers.

In this blog, we will give you a clear overview of what coronavirus is and can it really have a negative impact on digital ad budgets. Let’s get started.


What is Corona Virus? 

The new and infectious coronavirus – COVID 19 – is spreading globally at an alarming rate. Till date, over 201,500 people across the world are known to be infected, causing deaths over 8,000. The outbreak first showed up in China and since then, has been spreading rapidly internationally. COVID-19 belongs to the family of coronaviruses but is less severe than Middle East Respiratory Syndrome (MERS) or Severe Acute Respiratory Syndrome (SARS).    

Despite that, novel coronavirus has taken the shape of an epidemic today, according to the World Health Organisation, spreading over 140 countries. Typical symptoms of coronavirus include fever, dry cough, fatigue, sore throat and difficulty breathing. As the disease is spreading at an alarming rate, governments across different nations have decided to shut down international tourist visas, schools & colleges, theatres, shopping malls, airports, popular tourist attractions, and places that witness heavy footfalls.

Most people are now considering “social distancing,” keeping away from public places that can increase the chance of getting the virus transmitted from one to another. Companies in highly affected regions have given their employees the option to work from home. The entertainment industry has come to a complete halt. The stock market has been badly hit, worsening the already-fragile global economy.

With a temporary lockdown situation across all business sectors, advertisers are wondering how COVID-19 can affect ad rates and website traffic. They are constantly facing the dilemma – whether it is worth hiring an Adwords specialist for dedicated PPC advertising or should they cut down their budgets and wait for things to normalize.

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Corona Virus Causes Sector-wise Disruption in Search & Digital Ad Budgets

The jolt to the economy caused by the coronavirus outbreak is expected to negatively affect advertising trends in many sectors. We are already seeing a fall in digital advertising budgets in travel and other sectors that are worst hit due to the spread of coronavirus. Initially, market analysts predicted that ad spending would increase as more numbers of people will be quarantined.

Additionally, with more people choosing to stay more at home, they are likely to spend more time on computers and phones consuming content. Therefore, ads targeted toward shopping, entertainment, etc. are likely to get more exposure during this crisis situation. As a result, ad spending in these sectors will also increase, experts predict. So PPC outsourcing India might be a wise decision.

On the flip side, sectors that have been most affected due to coronavirus spread are likely to see a significant fall in ad budgets. These include travel, retail, airlines, events, gyms, local advertisers, etc. Due to the demand crunch situation prevalent across these industries, countless advertisers will suspend their online media buys. This will not only remove money from the market but also lower competition in the ad auction, reducing ad prices for all.

Website categories that are witnessing lower traffic due to coronavirus outbreak are:

1. Business-related topics
2. Sports
3. Travel websites
4. Housing & DIY websites
5. Wiki and referential sites
6. Educational references
7. Business-related sites
8. Money-saving and coupon sites

On the other hand, website categories that are witnessing higher traffic and as such, higher ad budgets are:

1. Entertainment sites
2. Productivity web applications and tools
3. Gaming sites
4. Religious websites
5. Other ideal time resources

A recent graph published by Primis, a video adtech provider, also suggests that there is an increase in viewability for videos and video content.

These are some areas that advertisers should focus their ad budget and maximize revenues. Not sure whether it would be a smart decision to spend on advertising amidst this turmoil situation? Consult a PPC management agency that can guide you through the most effective strategies that will drive more traffic, stabilize your business, and generate more revenues.


Poor Demand and Supply Chain Concerns

One of the biggest challenges that most advertisers are facing during novel coronavirus pandemic is poor demand and supply chain bottlenecks. Since production in China and other countries have been badly affected due to this epidemic, companies importing from these nations are currently running low on inventory. The situation has not improved with regard to the supply chain and the future remains uncertain. Therefore, some vital products are expected to run out of stock this month. As a result, Google Shopping and Search ad budgets have been cut by 40%.

Travel agencies, airline companies, food & entertainment, retail, and other related sectors are facing a steep decline in demand as more and more people are considering staying at home to prevent coronavirus transmission. This has forced businesses in these segments to cut their ad budgets by over 50% across all digital channels. PPC consultant from across the world has also reported that certain businesses in the events and hospitality industry have completely stopped their advertising campaigns unless things get normalized again.

However, if you are lucky enough to be in the business pertaining to health & protective items, digital entertainment, gaming, online shopping, etc. – this is the perfect time to leverage the benefits of PPC advertising and maximize your revenues. Due to demand and supply chain concerns, the competition in the field of digital advertising has declined significantly. This has pulled down the ad rates globally. So this is the best time to outsource PPC India, build a powerful ad campaign, get quality leads and increase your revenues.

Google Adwords Specialist


Traditional Advertisers Switching to Digital Media may Lead to Increase in Ad Spend

Amidst the economic crunch situation, not every advertiser is seeing budget-cutting as their answer to combat coronavirus. Traditional marketers such as those involved in tradeshows and events are witnessing more cancellations. However, they have diverted their ad spend to the digital media, making up for the leads lost due to the COVID-19 outbreak globally.

On the other hand, advertisers from food tour businesses are also considering increasing their digital ad budget rather than pulling down. In the face of a downturn in the travel industry, they are taking a unique approach of promoting food tours through investments in search ads. This way, they are anticipating gaining an advantage on top-notch travel companies who have majorly cut down their ad spending during this time.

On this positive note, WARC is projecting a growth in the global media budget by 7.1% in 2020. This is based on the anticipation that advertisers will focus their budgets on the latter half of the year, boosting competition and ad rates.


Location-Based Ad Targeting

Smart businesses are adhering to location-based PPC advertising rather than cutting down their ad budgets during the outbreak. For example, top advertisers like Adidas have pulled their ad spending in specific markets like China. That is because coronavirus outbreak has literally made it impossible to market in countries like China, Italy, etc. However, Adidas is continuing to spend in digital media in markets where it makes the most sense.

On the flip side, streaming services are buying more ads in China and other affected markets because they are planning to drive profits from people who have been quarantined, isolated or forced to stay at home. So, location-based PPC advertising is one strategy that can help you allocate your ad budget most meaningfully, driving more traffic and increasing revenues in the long run.


Effective PPC Strategies for Effective Advertising Amidst Coronavirus Outbreak

Find out the key strategies that PPC advertising companies can deploy to help you advertise in an effective manner and generate more clicks even amidst this corona pandemonium:

1. A thorough audit of your existing PPC account and campaigns
2. In-depth keyword research and analysis with regard to coronavirus search interests and changing customer demands
3. Analyzing the market competition for most relevant keywords
4. Effective bid management
5. Optimizing your ad creative and landing pages to make them most relevant in light with what people are searching regarding coronavirus
6. Location-based ad targeting
7. Continuous campaign monitoring, analysis, and reporting



When it comes to analyzing the impact of coronavirus outbreak on digital ad budgets, it can be said that the situation is a mix as of now. While companies belonging to certain sectors are pulling down their ad campaigns and money from the market, there are others that are leveraging the opportunity of more people staying back at home. However, the former scenario has resulted in lower ad rates, paving lucrative opportunities for other advertisers.

Hire the best PPC packages India and make the most use of this advertising opportunity to stabilize the economy and drive quality leads even amidst this crisis situation.


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