Shoppers are expected to spend less in the coming months.
Several direct-to-consumer (DTC) advertising brands are cutting off their advertising spend on Google and Facebook. Many DTC executives and marketing agencies have also reported a drop in the cost-per-clicks (CPCs) and cost-per-mille (CPMs) on Facebook right now.
Businesses are likely to shift towards more low-cost customer acquisition methods due to the coronavirus pandemic. Some brands, however, might spend more on advertising on Facebook to benefit from less competition.
Brands will have to figure ways to market their products as essential deals as shoppers will be limiting their spending only to the essentials. Joe Yakuel, founder and CEO of performance marketing agency Within predicts that “Google Search and dynamic retargeting ads on social will remain relatively safe”.
[4 minute read]