How Is The Corona Virus Affecting Digital Marketing Agencies?

How Is The Corona Virus Affecting Digital Marketing Agencies?


Corona Virus and the global economy

The coronavirus pandemic has been in the news for over six months now. The virus causes respiratory diseases and leads to multi-organ failure and death.

It has affected the global economic growth rate greatly as per the latest IMF reports.

The outbreak happened in China and quickly spread to 185 countries. The economic forecasts for 2020 have lowered due to a new surge in the virus cases. The manufacturing sector in more than 48 countries has become stagnant. Europe and the Americas were severely affected, and brand names struggle harder. The restriction in travel and transportation have become necessary and also adverse on trade and commerce. The impact has also spread to even the top digital marketing agencies in the USA

Woes of digital marketers

Top brands rely on marketing communications to find a global clientele. They also use digital media to a significant effect. However, the pandemic has brought marketing techniques under the spotlight. Digital communications are no exception to this dynamic, unpredictable scenario.

The business models have transformed after the corona pandemic. Some brands are struggling to deliver practical, innovative strategies. Working with clients has not been easy, even for talented consultants with high-end remote working technologies. And the negative economic forecasts are putting more stress on social networks.

The recession has dramatically altered e-commerce and online shopping. The top digital marketing services USAare facing new challenges along the way. Some believe that the package received might contain germs, and others do not want to spend money on shopping.

What was once a simple shopping is now a luxury in many homes. Some common obstacles include digital security concerns, trust levels, and brand safety. Experts predict that the virus will have both short and long-term impacts. The pandemic has not spared even an online retail giant like Amazon.

Negative social media reviews are not just targeting China. They are also critical of small and top direct-to-consumer brands. Job and work patterns, consumer lifestyles, and online shopping habits have also changed.

Short-term impact

Online marketers are concentrating more on the present scenario. They have put future vision and long-term viability on the back burner. In the last few years, digital companies had to cope with many problems. They include issues like transparency, brand trust, and poor consumer feedback.

Experts say that the pandemic had a cleansing effect on the sector. Even the best digital marketing company USAis focusing on spending without expecting returns shortly. The results of these actions have become unpredictable due to the world coming to almost a halt. Top brands are waking up to this impact due to losses in sales and visibility.

E-commerce advertising for computers, electronics, and household goods increased. But paid search and social ads are not creating the same impact as before. They are slowly recovering, but the short-term impact has been considerable. But, search shopping campaigns and Facebook dynamic product ads recovered fast.

To cut down costs, digital marketers also shifted focus to TV. They produced low-cost ads at a faster rate like Telco. Then they turned their attention to online sales and brand performance concerns. The nature and relation of digital media and TV platforms have also altered.

Medium-term consequences

After the lockdown, daytime consumer shopping habits also peaked. Even the old generation has taken to video chatting, Facebook, Zoom, and Facetime. Their digital suaveness has altered the nature of KPI metrics. High click-through rate and brand visibility are not the most vital factors anymore. The top digital marketing agency USA has started catering ads to this new market too.

  • High purchase intent requireslow efforts to be made by the advertising company.
  • Lower sales funnel presence has become crucial in these COVID times.
  • Brand value, honest fulfillment estimates, charity to the global cause, and creating health awareness have become vital.
  • The medium-term effects have also forced marketers back to basics. The right message at the right place and the right time has become valuable.
  • Balancing lower and upper funnel advertising has also become a challenge.
  • The mid-range impact has also shown an apparent increase in online orders.
  • Disinfectants, cleaning supplies, everyday item sales have seen a spike.
  • The plummeting travel industry sales are unlikely to recover even after the 1st quarter.
  • The effect on diverse sectors has been uneven, and it will remain so for some time.

Long-term footprint

The digital advertising leaders are very skeptical about the long-term corona impact. They see both opportunities and challenges during these crises times. Even the best digital marketing services USA has reduced, postponed, and paused ad campaigns for travel and luxury elements like airlines and cruise ship sales. The consultants will also have a chance to upgrade their strategies, goals, and KPI metric calculations.

  • Job and unemployment concerns will linger for a long time
  • Ads for games, entertainment, and streaming apps will continue to grow.
  • Social media communications will find more favor among diverse users.
  • Digital currencies, blockchain, and IoT will lead to AI-based campaigns.
  • The long-term footprint will be substantial, although it is unclear now.
  • Data-based ad infrastructure will be in place for increased performance.
  • Marketers have to innovate new types of solutions to build up brand value.
  • Logistical systems will undergo excessive stress due to a rise in online sales.
  • Marketplaces and retail stores will cut down on one or two-day delivery promises.
  • The spread of coronavirus will be the final determinant of long-term effects.


To summarize, the short-term consequences of Corona are very adverse. Even the best digital marketing company in the USA cannot cut down costs. They have to spend and contend with multiple uncertainties at the same time. These include jobs, new customers, trust, data privacy, and changing shopping habits. The historical data is uncertain, and hence challenges will continue to mount. This erratic customer behavior will put many AI solutions under stress.

The mid-term impact is positive for small and big retail stores. But, top brands like Amazon have to do become socially responsive and active to win over customers’ trust. Health, medical, cleanliness goods, and services will grow considerably. And the methods to evaluate performance metrics will adapt to reflect the new reality.

Finally, the long term prospects look good due to a competitive streak. Digital advertisers will innovate using data-intensive strategies. Investments in online marketing will also receive a healthy boost. Mobile, gaming, entertainment, health, and related sectors are the long-term beneficiaries.

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