Businesses have pulled spending from marketing campaigns, US and China are optimistic about their economies, agile marketing adoption is up from 32%, and more from across the globe. 
 
Summary:
  • According to Global Web Index’s findings, 80% of consumers in the U.S. and UK say they have consumed more content since the outbreak.
  • According to emarketer, 49% of marketing professionals and agencies held back a campaign launch until later in 2020 and 45% stopped or paused a media campaign midway.
  • Admoik shared that there was a 17.2% drop in week-over-week ad revenues, direct deal and programmatic guarantee being the biggest drops.
  • Despite the 8.3% decrease of retail industry’s M&A deals, Apple acquired AR technology startup, NextVR for a $100 million with an intention to launch its AR headset in 2022 and AR glasses in 2023.
  • 53% of consumers prefer brands to communicate through TV ads.
  • According to McKinsey, UK, Spain, and Italy are least optimistic, whereas the US (37%) and China (48%) are optimistic about their economies jumping back to normal in the next two-to-three months.
  • Purchases are up, while average order value is down, resulting in growth returns on a daily basis that exceed the biggest shopping days of the year—even Black Friday.  
COVID-19’s effect on consumer behavior
According to Global Web Index’s findings, 80% of consumers in the U.S. and UK say they have consumed more content since the outbreak. 
Broadcast TV and online video streaming platforms like YouTube and TikTok are winning more screen time as primary mediums for all generations and genders.
Consumers seeking pandemic-related updates are at a predictable 68%.The most preferred media consumption across Gen Z, Gen X, and boomers was online videos,  music streaming, and online press.
 
Here is an age group breakdown of media consumption:
 
Media consumption of Gen Z – 16 to 23 year old:
  • Online press – 21%
  • Music streaming – 28%
  • Livestreams – 17%
  • Books/literature – 18%
  • Podcasts – 11%
  • Online videos – 44%
Media consumption of Gen X – 38 to 56-year old:
  • Online press – 31%
  • Music streaming – 27%
  • Live streams – 21%
  • Books/literature – 21%
  • Podcasts – 10%
  • Online videos – 35%
Media consumption of Boomers – 57 to 64 year old:
  • Online press – 15%
  • Music streaming – 12%
  • Live streams – 9%
  • Books/literature – 13%
  • Podcasts – 4%
  • Online videos – 11%
US consumers (87%) and UK consumers (80%) are consuming more content with a lion’s share going to streaming broadcast TV, online videos, and online streaming. Netflix boasts an 18% rise of paid subscriptions, and Spotify stands as the clear winner of music streaming.
Live streams (30%) and podcasts (20%) are more popular among millennials than other generations. 
Men and those in the higher income bracket are more likely to say they’re consuming a variety of content more compared to women and those in the lower-income bracket. 
 
COVID-19 impact on media-buying
According to emarketer, marketing professionals and agencies have taken an obvious hard hit, but the numbers are concerning:
  • 49% held back a campaign launch until later in 2020
  • 45% stopped or paused a media campaign midway
  • 38% paused all advertising until later 2020
  • 34% scrapped campaigns pre-launch
Paid advertising
53% of consumers prefer brands to communicate through TV ads. 35% of consumers are more interested in hearing about online retail (excluding food) than they were before.
As per the research conducted by AI software company Remesh, 97% of people are using social media for at least one to three hours a day. 
Despite targeted advertising, these were some statistics the research discovered
  • 64% of people ignore paid ads
  • 49% blocked those ads
  • 79% of people urged brands to have ads that are positive, caring and inclusive
Consumer spending during COVID-19
According to McKinsey, UK, Spain, and Italy are least optimistic about their economies bouncing back to normal. Whereas, the US (37%) and China (48%) are optimistic about their economies jumping back to normal in the next two-to-three months. People are showing a positive only for groceries and at home entertainment. 
 
McKinsey data insights for UK consumers:
  1. Less than 20% of British consumers have an optimistic view of the economy – a decline from last week
  2. Nearly half of UK residents plan to continue reducing their spending in the next two weeks
  3. Consumers are spending more time connecting virtually and consuming digital media
  4. Consumer intent is only positive for groceries and entertainment at home
McKinsey data insights for US consumers:
  • 46% will reduce spending over the next two weeks
  • 44% are delaying purchases given the uncertainty of the coronavirus
  • Consumers expect to focus this spending online.
  • shift to online channels is being driven primarily by Gen Z, millennials, and higher-income consumers.
  • Aprroximately 76% believe their finances will be impacted for the next 2+ months post the COVID-19 situation
  • Positive intent for groceries, entertainment at home and household supplies
Grocery sales have a 23% spike as compared to pre-pandemic sales, indicating that people are entering a new pattern of “home-confined buying”.
 
Image by Gerd Altmann from Pixabay