INCREASE ECOMMERCE SPEND AS SOCIAL DISTANCING CONTINUES

01 August 2020 / By samsonoduor

Although we’re in a time of uncertainty there is one thing that is certain, consumers’ increase in demand for eCommerce. The driving force behind the increase in demand is Government advice to urge whole populations to “stay at home”, social distance and avoid the outside world. With only essential shops allowed to remain open, searching for and buying products online is our only way to access them.

HOW MUCH ARE ECOMMERCE BRANDS INCREASING THEIR INVESTMENT?

INCREASED DEMAND IS COMPARABLE TO THE CHRISTMAS PERIOD

Most eCommerce brands make most of their sales and revenue during the few weeks of the year around Black Friday and the lead up to Christmas. However, since social distancing measures have been in place, the level of demand for many items such as books, toys, home workout equipment, homeware and loungewear is comparable to (and some cases, higher than) Christmas and Black Friday. As people are more likely to purchase during this time in lockdown, it’s definitely worth increasing your ad spend in order to drive incremental sales.

AMAZON HAS CUT GOOGLE ADVERTISING SPEND, CREATING AN OPPORTUNITY FOR ECOMMERCE BRANDS

Amazon, one of the biggest investors in Google Shopping and Google Ads, has significantly reduced the amount they’re spending on Google, as they are struggling to keep up with increased demand for deliveries. What this means for Paid Search is that a lot of Google Ads auctions have become less competitive, creating an opportunity to drive lower CPCs.   Less competitive ad auctions and increased demand means there’s an opportunity to increase brand awareness, traffic and sales. It’s a great time to reach new customers that haven’t interreacted with your brand before due to Amazon previously dominating the SERPs (Search Engine Results Pages).   There’s another opportunity for eCommerce brands as Amazon struggle to meet their ‘handled by Amazon’ distribution requirements. If you are a brand with the ability to take care of your own distribution, you could start or increase eCommerce marketing activity on Amazon Ads to fulfil customers’ demands.

INCREASE YOUR MARKETING SPEND IN LINE WITH INCREASED DEMAND

Look at your demand and supply levels and if possible, increase your eCommerce marketing budgets in line with the increase in demand. Fulfilling customers’ increased demands for eCommerce products in their time of need will drive an increase in sales for businesses in the short-term, and retain satisfied customers in the longer term.

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