Businesses increase digital marketing spend despite falls in revenue

Digital-Revenue-1024x683The COVID-19 pandemic has dramatically changed the world in many ways. An extensive study recently undertaken by the Digital Marketing Institute (DMI) has analysed how the pandemic has affected businesses and their marketing efforts.

The whitepaper DMI published on the 1st July showed that 67% of their respondents had seen a decrease in revenue and as a result have had to reduce their costs. However, despite some marketing budgets decreasing overall, digital marketing spend had actually increased for 49% of the businesses.

Digital First strategies are now more important than ever. Although this was the trend we were seeing before the outbreak, the pandemic has accelerated this change exponentially.

Central to this change is a customer's need for information. Customers or potential customers are spending more of their time on social media and engaging in content. They are turning to these channels more in order to discover information and find support. Therefore, it is important that brands have this content available for potential customers in order to help them.

The study also highlighted a reduction in hard selling, with some removing their sales messaging entirely. Focussing on providing their customers with valuable, practical advice and solutions to their problems has become effective during this difficult time.

Businesses are understanding the shift from traditional forms of marketing and switching their attention to digital based approaches. In particular, there has been a major shift towards webinars, social media, content marketing and other organic marketing methods.

With revenue down and budgets tightened, businesses are prioritising marketing methods that are deemed low cost but effective. This is why content has become a central part to many businesses marketing plans.

It is clear to see that the effects of COVID-19 has changed the customer journey and experience dramatically. Having a greater digital presence and sufficient e-commerce capabilities are two things that have helped businesses reach their customers during this difficult time, and will continue to be the focus for many businesses.

Although changing how your business runs can be costly, in today’s environment going digital is now not a luxury option. It is a necessity.

If you would like to learn more about what digital marketing channels will suit your business, then please get in touch with DBS.

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