As part of our Let's Make Lemonade effort to help South Florida companies bounce back from the COVID-19-induced recession, we spoke with Jenny Jean-Baptiste and Kareme Shorter of Cox Media Group, Miami. They had some great news to share about the emerging trends in advertising media that companies can take advantage of during the state's fitful reopening.
DIGITAL SPENDING IS UPPerhaps no surprise here – with much of the population sheltered at home, digital media – such as social media, paid search and display advertising – now account for a larger percentage of many companies' spend.
Some of this additional spending is directed toward efforts letting customers know that businesses are open, offering modified services or offering different hours. The rest is reallocation from other media, such as out of home.
The big takeaway: For advertisers, now's a great time to double-down on your high-performing digital channels with important information or relevant offers.
DIGITAL RESPONSE RATES ARE ALSO UPInterestingly, click-throughs, even for display advertising, are up during this period. "We've had partners say, 'why are my clicks up by so much this month?' which is a great conversation to have," says Jean-Baptiste.
More consumers with time on their hands is actually driving up ad response across the digital spectrum. Another factor in this is slightly better saturation and less competition providing a more effective canvas for a smaller number of advertisers.
On a more industry-specific note, for home goods, home services and food service, this trend is even more pronounced. More time at home is driving more interested in professional and DIY home improvements – and in, no surprise, food pickups and delivery.
The big takeaway: Right now, any digital spend is going to go further. The combination of emerging consumer demand from being at home and decreased competition means that every ad dollar counts for more.
COSTS PER CLICK AND IMPRESSION ARE DOWNThis is the inverse of the point above. The combination of higher response rates and lower competition has a pincer effect on these important ROI measures. Kareme Shorter, from Cox Media says, "Right now more people are responding to advertising, while fewer competitors are vying for keywords and ad space. That's great news for our partners."
Much like we've seen in prior recessions, companies that maintain a level of advertising activity tend to make market share gain that last long after the downturn.
The big takeaway: Now is an excellent time to demonstrate return on ad spend – if you're one of the smart ones spending. LOOK FOR EXCLUSIVITYMany companies have, in a knee-jerk reaction to uncertainty, paused or postponed media buys. If that describes any of your competitors, this is your moment to snag exclusivity within your chosen channel. Think about being the only one in your market advertising on the station where you know your customers tune in. It's like have your own custom-made exclusive sponsorship deal – without the extra cost.
Jenny Jean-Baptiste says, "That's been positive news for several of our partners who are now actually increasing their spend in certain channels. Once they realize they have category exclusivity, it becomes clear quickly that this is a can't-miss opportunity."
The big takeaway: If your competitors are doing less, it's time to make big inroads with their customers. Opportunities for category exclusivity within a given channel don't come around often.
CHANGE BRINGS OPPORTUNITYIf there's one thing to take away from our conversation with Cox Media Group, it's that. The point and purpose of our Let's Make Lemonade effort is to get companies to stop reacting – and instead plan for a future that now looks different. It's a great opportunity to get some outside counsel from top agencies and media partners in our area on what you can do to come out stronger.
If you're not sure where to start – contact AAF Greater Fort Lauderdale and the Palm Beaches. We'll connect you with resources and partners, like Cox Media Group, who can set you up for success.
AAF Broward + Palm Beach was established in 1957 as a local arm of the American Advertising Federation (AAF) to serve the interests of all disciplines and career levels in advertising. Now in 2020, we serve the Greater Fort Lauderdale and Palm Beach County advertising community.