Research Disclaimer: This report is based on the data collected from an actual survey conducted titled “How the Pandemic is affecting the Advertising Ecosystem”. Due to confidentiality reasons, some of the data has been modified. All the opinions provided as quotes are the opinion of the respondents based on assumptions.
The COVID-19 pandemic has changed the market dynamics, and businesses around the world are taking steps to deal with this change in their way. Marketing and advertising sectors have also seen a shift in various work domains.
To gauge the level of change in people’s mindset and how companies are crafting their marketing modes and channels, an independently conducted survey having 100 respondents from Advertising Agency (32.7%) and Brand / Marketing Departments (67.3%) has been done. The survey included respondents from different industries like FMCGs, Telecommunications, IT, E-commerce, and Fashion. The respondents varied from Head of Corporate Brands, Sr. Brand Managers, and Senior Executives from various top-ranked local and multinational companies.
Changes in Communication:
In this category, we have surveyed how key communication and deliverance has changed its orientation due to the pandemic.
- 39 respondents have said that they have continued the existing campaigns but changed the messaging being delivered.
- 58 of respondents have said that their communication has shifted more towards Socially responsible behavior and 41 have said they have increased their spending on Digital Media.
While 41 have responded that they have reduced the overall media budget.
Corona Oriented Content
87.1% of respondents have said that they have produced some kind of corona-related awareness content or campaign for the audience.
Platforms for Communication to Generate Awareness
The survey also highlights the various changes in different communication channels that are being used.
Like the increased usage of social media as a communication channel since 74 have used static content for social media while 50 have produced short animated content for social media. The survey also highlighted the significant decrease in PR and Print Ad as being used by only 1 and 8 brands respectively.
The respondents were also asked about the revision in the budget. 77.2% of the respondents have said that they are considering the revised media budget for this year, 2020.
Intended Reduction in Budget Allocation
On asking for the areas that have seen a reduction in the budget, the results revealed that:
- 65 of the total 100 intend to reduce the budget for Events and Activation.
- A decrease in the budget of Print Media by 51 respondents have been reported.
- While Television Commercials (TVCs) have seen a decrease from 35 and Radio Commercials (RDC) have seen a decrease in the budget from 28 respondents.
- Less than 10 respondents have decreased the budget for digital platforms such as Facebook, Instagram, and Google Ads.
Intended Increase in Budget Allocation
On the other hand, the increase in budget has been seen in the following sectors:
- A high increase in digital platforms such as Facebook by 83, Google Ads by 77 and Instagram by 42 respondents.
- TVC has seen an increase of 21 while Radio Commercials have seen an increase from 5 respondents only.
After the Pandemic
In this section, the argument under scope was to ask which industries or sectors will rise after the pandemic is over.
- Around 70 responded that FMCG and E-commerce will be the major industry that will see an increase in sales.
- Agro and Food Processing is agreed by 50 while IT, Pharmaceutical and, Food & Restaurants are suggested to increase by more than 30 respondents.
- Telecommunication and Electronics are the other major sectors where appreciable rise will be seen as responded by more than 15 respondents
Preferred Communication Channel/s
On asking about which platforms would be preferred after the pandemic is over, the respondents have strongly commented to use Digital Media as the preferred method with the support of 88 respondents.
The Television, Print, and Events and Activation have been selected by 42, 39, and 41 respondents respectively.
Media Spending Patterns
When asked about the changes in the media spending pattern conditions after the pandemic is over.
- 53.5% think that there will a massive change in the media spending pattern.
- On the other hand, 39.4% have negated the hypothesis of massive change after the pandemic.
- 7.1% have said that they were not sure.
This manifests that the usage of Digital Communication is going to drastically increase in and after the pandemic. Commenting on this, an expert said,
“Brands will go for cost-effective media spending such as Digital Communication after pandemic”, said by one of the respondents.
“this pandemic has made the people of all generation rely on digital platforms.”
Regarding consumer behavior, one said,
“Not only media spending but all kinds of consumer behavior will also change after the pandemic. People will be very sensitive about the messages being delivered by the brands.”
The respondent noted that
“Offline activity will see a reduction while an increase in the digital activity and E-commerce will be seen”.
On a whole, the dynamics will be changed and it is not wrong to say that the evolution of digital marketing and advertising particularly in Bangladesh, which has been predicted for the next two to five years before the pandemic, will happen at much earlier time. The advertising agencies and companies should make themselves aware of this drastic increase in the usage of Digital Media and be ready for the future which is just around the corner.