69% of brands expect to decrease ad spending in 2020, according to Influencer Marketing Hub, and although the number seems quite scandalous, the biggest challenge It is up to us to make the strategy work even with everything and the reductions and more specifically, to learn to place the budget based on the greatest benefit.
The simplest thing for several companies was to reduce their investment or practically stop investing until they had a broader picture of what is to come, however, we will find the balance reviewing the initial objective of the campaigns and reconsidering whether the objective is essential or not.
What impact has the quarantine had on investments in digital marketing?
In general, companies are now more careful with their investment, deciding in which media they are going to invest according to those that can offer them the best value results in the short term or even immediately.
The budget in performance will be the one that is best focused than ever, because every peso will count for the brand to properly direct its strategy.
For example, for the essentials category it will be easier to break through under a performance budget, but the same will not happen for travel, luxury, and fashion services companies.
Although it is evident that the most significant change was in the volume of conversions, in many cases where services and products are essential, conversions have grown exponentially since the end of March (40%) . However, other companies began to reduce the conversion volume, making the cost per conversion more expensive, which is where several of the decisions made regarding the investment to be made during the contingency derive.
Tips for having a good investment strategy
Investing each client's budget in a better way will depend on the review of the current strategy, the first thing would be to review the performance of each medium, review the volume of leads, Then analyze the closing rates of those sales leads, or in the classification that is most valuable for each brand and do an analysis of the cost per lead.
In addition, I suggest you pay attention to the cost for each sale, this way we will reduce the budget on media that bring us little volume to focus on those that are leaving us more opportunities.
The media mix will change after this analysis but don't worry, the important thing is to concentrate the investment where we see demand and volume growing.
