While the travel and entertainment industry is stagnant, game and online learning providers are "at the time of attack"
Various industries such as manufacturing and tourism have been hit hard by the effects of the new coronavirus infection. For example, Expedia, which provides accommodation reservation service, told CNBC that it will reduce advertising costs by at least 80% in 2020 to stay below $ 1 billion (about 107 billion yen)Revealing. On the other hand, some fields such as online games, online learning, e-commerce, and home-based software are facing an unprecedented “offensive time” that “inflows increase while advertising prices fall.”
As digital ad prices slump, gaming, education companies get aggressive
Advertising companies such as Google and Facebook have a lot of inventory due to the reduction of advertising costs of companies, and the price of digital advertising has plummeted while the internet traffic increased as the number of people spending their time at home increased. I will. According to SNS marketing company Socialbakers, the price per click (CPC) on Facebook has dropped to less than half from December 2019 to March 2020, and the analyst of asset management company Bernstein is advertising price on Twitter Has dropped by 40%.
On the other hand, people are spending more time in their homes than ever before, and more computers are being used, leading to increased sales in areas such as e-commerce, online games, online learning, and home software. According to media agency PMG, one shopping site has been successful in reducing traffic CPC by 41% while increasing traffic by 25%.
There are also companies that take advantage of the decline in advertising prices and see this pandemic as "at the time of attack" to increase advertising costs. Demand for wigs is increasing because many people are unable to go to the beauty salon because they are prohibited from going out, but the online beauty brand "Insert Name Here" that sells hair extensions and wigs cooperates with influencers during this period. We publish styling movies for Instagram, Facebook, TikTok, Snapchat, and YouTube. Kevin Gould, co-founder of Insert Name Here, said, “The price of digital advertising has dropped by 35%, and we typically spend $ 1 million annually on advertising costs of around $ 107 million. ~ 100% strengthening. " Gould stressed the importance of being sensitive to the challenges consumers are experiencing, and said influencers are an effective way.
The game industry is also receiving a tailwind, and game companiesFlowPlayAccording to CEO Derrick Morton, FlowPlay adds 25% more play time to existing users of the game. In addition, Google is increasingly searching for "free games" and "online games", and it has an opportunity to acquire new users. However, bids for game advertising haven't fallen that much compared to other industries, so prices have fallen only to around 10%. Still, FlowPlay has decided that there is a tailwind, and has already released more than 35% of the budget for 2020.
We also offer online learningMasterClassAlso increases advertising costs in line with demand from new users.
However, it is difficult to determine whether this tendency is temporary or persists even after society resumes its activities. Catherine Patterson of digital marketing company Nina Hale told brands that "it's a good time to focus on building awareness and building consumer relationships," rather than tackling the sale during the pandemic. I said.