During the peak of the COVID-19 pandemic, most state and local governments created and enforced stay-at-home orders to help slow the transmission of the novel coronavirus. With movie theaters, swimming pools, bowling alleys, churches, and other large venues locked down, people turned to other activities to fill their hours—and much of those involved screens. These are the top ways marketing is changing in the post-COVID era.
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How the Coronavirus is Impacting the Advertising Business
As of mid-May, the number of confirmed COVID-19 cases worldwide has surpassed 4.5 million, killing more than 310,000 people and upending every aspect of U.S. life as we knew it. Sectors of society most affected by this global health crisis have been the healthcare and educational systems, but efforts to “flatten the curve” and slow the spread of coronavirus have affected nearly every area of the economy.
The advertising business is no exception.
Even while online sales of essential products including food have skyrocketed, sales of discretionary items have plummeted. In the face of these challenges to their bottom lines, rather than ramp up their marketing efforts to encourage sales, many enterprises have greatly reduced or eliminated their advertising budgets as they struggle to prevail.
TV networks that pull down a large portion of their revenue from ad sales during major sporting events are facing a disastrous impact on their annual revenue. Centralized media brands resource and ad-buying agency MagnaGlobal predicts that the measures to slow or eliminate the spread of COVID-19 that have forced cancellations, postponements, and other modifications that will result in decreased viewership, fewer advertising contracts, and far less revenue for TV networks.
According to the think tank, cancelled NBA and NCAA events will cost TV networks up to a 25% drop in viewership. Major League Baseball in the United States and the European Formal One Grand Prix racing circuit have both proposed shortened seasons without fans in the seats. Perhaps most significantly, says MagnaGlobal, the International Olympic Committee and Japan’s Prime Minister Shinzo Abe’s decision to postpone the 2020 Tokyo Olympics— while a prudent public health measure— will force advertising projections that will have a deleterious effect on TV networks around the world.
Although one industry source estimates that cancelled ad campaigns have resulted in a reduction in advertising revenue approaching 60%, the good news is that advertising hasn’t completely stopped. Astute ad agencies are taking great care to be sure that all their clients’ messaging is right for the times— even if it means shelving entire campaigns for the moment. The most effective agencies are also making sure that they continue to stay in close contact with their clients through every digital avenue available, and that they are leveraging the most sophisticated video-conferencing applications available to keep their existing clients well-informed on real time changes. The current advertising climate is also a good time to foster relationships with potential clients who may need assistance navigating the post-COVID world of advertising and marketing.
Digital media companies like The Verge, Gizmodo, and others are facing the worst downturn in a generation. Silicon Valley startups launched on business models dependent on meteoric growth driven by online spending appear especially vulnerable as people reduce discretionary purchases and prepare for possible unemployment or furloughs.
According to industry insiders, advertising companies will not only sustain temporary body blows as the country weathers the current COVID-19 outbreak. Instead, the advertising companies should anticipate fundamental changes in how they do business, well past the resolution of the current pandemic.
Coming Soon… A New Home for AW!
When our founder and CEO Monica Kolbay realized that ArachnidWorks was fast outgrowing its current home, she set her sites on finding us a new one. She approached her search in the same way we approach every client— with fresh eyes and a view toward new possibilities.
At the top of her wish list was a historic building in Downtown Frederick that she could purchase and adapt for use by our modern, creative business. She envisioned a building near the epicenter of our community that was easily accessible to our clients from Baltimore, Washington, and Virginia…with space for our staff of a dozen employees and growing with plenty of room to spread out…and a place where we could comfortably welcome clients and host the occasional AW happy hour on a Friday afternoon.
When she toured 47 South Carroll Street late last year, she knew she had found everything she wanted in a new home for ArachnidWorks before she had even reached the top floor.
Today we are proud to officially announce our new headquarters in downtown Frederick, MD.
Just steps away from Frederick’s Carroll Creek Linear Park and across the street from the Delaplaine Center for the Arts, the circa 19th century brick building was ideally located and extremely well-constructed. A former owner, a talented architect, had designed the interior space with a view toward historic preservation and future sustainability. From the weathered brick facade to the original cross-grained wooden floors, the building is functional, practical, and beautiful!
Monica and Brian Kolbay purchased the building earlier this year, paving the way for moving day later this spring. We look forward to sharing our new space with you and the rest of our clients and friends very soon.
We’ll keep you posted!
Advertising Trends To Watch For in 2020
There are basically two types of advertising. The first kind gloms onto the latest tricks and trends for novelty’s sake and looks dated in a matter of months. Type #2 relies on a select group of promising trends and manages to look fresh while remaining classic and timeless.
Which kind of advertising strategy do you want?
Let’s look at a few trends that are out in front for 2020 that are worth learning and adapting into your business’s advertising.
Voice Search
One of the most popular ads aired during Super Bowl LIV was “Before Alexa,” in which power couple Ellen DeGeneres and Portia DeRossi talk about life before the advent of the voice assistant. At least 25 percent of adults in the US could relate, as that’s the number believed to own a smart speaker like Alexa or Google Home. What implications does this have for your advertising? Make sure your site is voice-search enabled so that people can access it using their smart speaker.
Increased Artificial Intelligence
In 2011, tech researchers predicted that by 2020, 85 percent of customer relationships would be enabled by Artificial Intelligence (AI)— that is, managed without human interaction. Sound unlikely? Actually not. The latest data says we are on track to not only meet but exceed that benchmark before year’s end. In fact, the latest predictions indicate that number might hit 90 percent by New Year’s Day, 2021.
AI is not only available 24/7, it drives the customer experience in ways we could only have imagined. It allows us to get our questions answered more quickly online, and provides personalized content on YouTube, Netflix, and Spotify. Banks are linking with Alexa and Google Home to allow customers to schedule transfers and pay bills. Movie theaters use AI to allow customers to purchase tickets, select seats, and pre-order popcorn and Raisinets before they pull out of the garage.
So how does Artificial Intelligence impact advertising? Start with this: AI can offer you in-depth information about what your customers want. It can leverage apps to learn what an individual’s preferences are, and direct you to construct and place ads based on past purchases.
Bottom Line? If your company isn’t already exploring how AI can inform your advertising, what are you waiting for?
Personalized Advertising
Technology allows advertisers to tap into the generalized preferences of buyers and also to the specific needs of individuals. In fact, simple efforts to make a brand more personal causes the likelihood of a purchase to skyrocket. 80 percent of consumers report they are more likely to purchase when an app they access greets them by name, reminds them of past purchases, and offers suggestions for similar products based on these items.
Social Media
Social media is already a popular advertising platform, and that trend is not slowing down. The number of users currently using social media is estimated at nearly 3.2 billion, pretty much ensuring an audience for just about any type of business. As an added bonus, you can write, design, and create ads that target age, location, gender— even interests. The actual sites that are most popular might change, but social media is here to stay.
Large Format Printing
Large format printing in the form of billboards, ads on the sides of buildings, and oversized banners at conventions and trade shows are increasing in popularity. These large format options grab attention, making up for their lack of targeting through the sheer number of people who see them.
Shoppable Posts
Emerging technology will allow users to click directly on the image of a product to get a description, price, and clickable link to order. While a version of this is available now, the newer version will be more streamlined— and in a world where time is of the essence, that will translate into more users. The new version of the shoppable post experience will be more interactive for customers, allowing you to publish ads that don’t necessarily look like ads.
Immersive Experiences
Expect Virtual Reality (VR) and Augmented Reality (AR) to become increasingly popular. Start exploring ways to use these emerging technologies to provide your customers with more opportunities to interact with your products.
Open Composition
Another design trend that is impacting how advertising looks and feels is what’s called the “open composition” concept. The look is free of harsh edges, and elements don’t line up perfectly on a grid. Picture an image where the edges fade into smoke and recede into the background. Websites designed with the open composition look and feel seem more fluid, and adjust well to varying screen sizes. The look also works for billboards and magazine ads. Look for more open composition styles, especially online.
Advertising is a creative field that invites risk-taking. That’s one reason that advertising trends change quickly, making it impossible to predict what will stick around and what will disappear before it’s even noticed. Our best advice? Mentally bookmark a few brands whose advertising styles you admire, and whose customer base is similar to your company’s. Keep an eye on what they’re doing. What seems to be working for them? The answers to those questions will inform your own advertising mix, and help you develop an ad strategy that will work for your business.
ArachnidWorks Named to Frederick’s Top 50 Workplaces
We are so pleased to announce that we have been recently named one of Frederick’s Top 50 Workplaces by the Frederick County Office of Economic Development (OED)!
To develop the list, OED identified a variety of data points that are important to economic development, such as the number of Frederick-based jobs, local property taxes paid, how many square feet the business occupies in the county, and how long the company has been in business. Final selections were made on the 132 nominees’ responses to questions regarding employee benefits, median salaries, community involvement, work environment, growth opportunities, and work-life balance.
You can check out the full press release here!
ArachnidWorks Welcomes Director of Client Engagement & Strategy, Jean Radish
We are very excited to welcome a new team member to ArachnidWorks! Meet Jean, our newest Director of Client Engagement & Strategy.
Not only has she already taught us what a “Schnauzerpalooza” is (hint: it’s when her two adorable Schnauzers come into the office), but she also brings a multidisciplinary approach to many facets of marketing and project management. We can’t wait to see what new level of benefit Jean will bring to our clients and their marketing strategies!
ArachnidWorks Celebrates The Season With Its Annual Holiday Party
Our 2019 holiday party was a huge success! We had a really fun time throwing hatchets at Stumpys Frederick – as all of us got the hatchet on the board at least once! We also had a wonderful time at The Wine Kitchen, where we hosted our 2nd annual ADUB Awards and had a delicious four-course meal.
We can’t wait to see what 2020 brings AW, so feel free to stay up to date on our Facebook/Instagram pages or right here on our blog!
ArachnidWorks Welcomes New Digital Marketing Analyst, Brent Harwood
Meet Brent! He is our newest Digital Marketing Analyst and we are very happy to welcome him to the ArachnidWorks team.
We’re looking forward to seeing what new level of benefit Brent will bring to our clients and their marketing strategies. As we continue to expand our web service offerings, Brent will be a key part of our team moving forward.
Welcome, Brent!
ArachnidWorks Participates in 2019 TechFrederick Games
ArachnidWorks was once again proud to participate in the 4th annual TechFrederick games! TechFrederick is an organization that was formed to identify, highlight, support, foster awareness of, advocate for, and develop Frederick’s growing high tech community through community education and human resource development, entrepreneurship training programs and seminars, and related events. This yearly event is designed to bring out the great employees of Frederick companies for some friendly interaction… and competition!
ArachnidWorks Welcomes Graphic Designer & Copywriter Brett Thompson To The Team
We are very excited to welcome a new team member to ArachnidWorks! Meet Brett, our newest Graphic Designer & Copywriter. Not only does he love dogs just as much as we do, but he’s also an advocate for the Oxford Comma.
“Brett has a great attitude and is eager to help out with a variety of graphic design and content-related projects. That’s going to make a great addition to our team,” noted our President of ArachnidWorks, Monica Kolbay.
As we continue to expand our marketing capabilities, Brett will be a key part of our team. We’re looking forward to the amazing work he’ll provide our clients!