To start, one piece of good news is that digital attention is at an all-time high. Because people are now forced to stay at home and work from home, they're turning to Facebook and Instagram much more than normal- both as a source of entertainment to stave off boredom, as well as a place to connect with friends and loved ones and get up-to-date news about the outbreak. For advertisers, this means the amount of available impressions and the capacity for ads to reach target audiences is on the rise, reducing lower overall operating costs for campaigns.
These times have also been a reminder of how important good messaging is. Many businesses have had to make apologies for insensitive or tone-deaf ads, while others struggle to get any attention in the first place. Good practice is to pause or postpone non-essential messaging, such as new product launches or "coronavirus deals", while putting more focus on creating good content, maintaining a positive/hopeful tone, and letting people know that these businesses have their backs in these trying times.
Analysts predict that Facebook's ad revenue will decline by 19% for the year. A potential silver lining here is that this means many of your competitors have stopped or reduced ad spending. As a result, businesses that take note and bid accordingly will be able to lower CPM and CPC costs.
While all signs point to cheaper ads at this time, a big problem is that bottom-of-the-funnel objectives like conversions is expected to slow down, due to the economic downturn and larger concerns occupying consumer's thoughts. Therefore, businesses should think about using this time to focus ad campaigns around brand awareness, traffic, and email signups, taking a long-term approach to build up a large audience for retargeting once things start to return to normal.
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