You have heard of the corona virus in the meantime.
The sad reality is that it is spreading quickly and will continue to spread for a while.
Did you know that we get about 13,000 new cases a day and it is growing rapidly?
No one really knows how many people will be infected (or die sadly), but it has crashed global stock markets, which means that you as a company (or even a marketer) are affected.
And since my advertising agency works with hundreds of companies in all major sectors and we have 7 offices around the world, we are already seeing how this affects marketing (I will share the following data).
What does this mean for you?
Before I go into that, I want to clarify what marketers should NOT do.
Don't take advantage of the situation
The first thing we see are people trying to take advantage of fear.
By that I mean that supplies around the world are running out. From masks and toilet paper to hand disinfectants to other basic needs … I see marketers who buy them and then resell them on eBay or place ads and sell them for 10 to 50 times the price.
This is not entrepreneurship and this is not marketing. I strongly recommend that you do not take advantage of the coronavirus situation to make money quickly.
It is not only wrong, it is also very short-sighted. Sure, you might be able to make money quickly, but it won't last … you should spend your time doing anything that is long-term.
What does the Corona Virus mean for marketers after we get it out of the way?
Companies will fight for a while
Even though the virus is slowing down rapidly as the numbers drop in China, companies will struggle for well over a year because they have to make up for their losses.
In China, for example, the virus caused a 20.5% drop in retail sales and the unemployment rate rose to 6.2 in February.
When companies like Apple close their businesses to narrow the spread, it means less income and less profit. Sure, they can pay their employees during their temporary closure, but not all companies have their bank balances, and most won't be able to do the same.
Just look at the travel industry. The virus is expected to lose $ 820 billion. Virgin Atlantic has just asked its employees to take an 8 week unpaid vacation.
The ports are also empty and the first rounds of layoffs have already begun.
It is estimated that COVID-19 will cost the global economy a total of $ 2.7 trillion.
And not only people lose money, but also traffic and conversions.
Organic transport is declining in most industries.
As mentioned above, we work through my agency with hundreds of clients in various industries. In addition, because of oversuggest, we also have tons of data.
Before I look at the data, note that we haven't focused on a single country. We have decided to look at traffic statistics from a global perspective. We also did not collect data from websites with fewer than 5000 visitors per month, as they tend to fluctuate dramatically in percentage terms, even if there are no global problems or algorithm updates.
We also have no data on each industry, for example we don’t really work with many restaurants and don’t buy data for that category because local restaurants do not usually have the largest marketing budgets. We have data on most, but not all, of the important ones.
From an SEO perspective, last week we saw a huge drop in organic traffic in most of the industries we're tracking. Just look at the table below (compare the last week to the previous week).
When you work in the news or finance industry, your traffic skyrockets.
And if you work in the travel industry, you have seen massive declines in traffic.
You can't tell from the table, but e-commerce was a mixed thing, depending on which websites were sold, traffic was either up or down. For example, if you sold baby products such as diapers or towels, you saw a nice bump in traffic.
But if you sold luxury goods like big screen TVs, you saw a decrease in traffic.
Conversions also declined for most industries.
From a conversion rate point of view, we also saw declines in most industries. Even the financial sector, which had a huge traffic boom in traffic, saw a decline in conversions.
Just look at the following table (compared to last week the previous week):
News (media) websites have had a large conversion lift, as many of them require people to read their updated information.
For example, you can only read a limited amount of Washington Post content until you see a message that looks like this:
People did not want to miss the corona virus, political and financial information with the turmoil, so the news sites saw a nice upswing.
And with some sectors like travel, they currently offer massive discounts, which helps counter some of their traffic declines. Overall, they are still experiencing a massive drop in revenue.
We don't have as much pay-per-click data as we do for SEO because Ubersuggest is mainly used for SEO purposes, but we haven't noticed any major shifts in cost per click … even for things like travel
We do not have a large enough sample, but as already mentioned, the costs have not decreased significantly.
Although the number of people looking for flights or hotels has decreased significantly, the CPC has not dropped dramatically, but the cost per acquisition has risen sharply.
In other words, you can still pay roughly the same amount per click, but the cost per conversion has increased for most industries … unless you sell supplies like toilet paper.
What does this mean for marketers?
Be anxious when others are greedy and greedy when others are afraid
I didn't come up with this saying, it's actually a line by Warren Buffett.
You will see people decline as the economy is expected to hit $ 2.7 trillion, and experts say we will go into recession.
You even have billionaire investors like Carl Ichan who say the market has more room to decline and we should expect the sellout to take longer.
But what I've learned from two crashes (the dotcom crash in 2000 and the real estate crash in 2008) is that the best time to double is when others don't.
During an economic downturn, you will find that you have less competition, which means it is easier and faster to get results, and in some cases you can do business, such as pay per click advertising.
Think of it this way: Of all listed companies in the United States, many of them will struggle to pay their debts, which have exploded to $ 75 trillion as the market continues to decline.
This means that some companies will either go bankrupt, be bought up or saved by the government. Some may cut costs enough to pay their bills, but for most it will be too late.
This also means less competition for you.
If you are lucky enough to be in cash during the recession, this is the best time to buy other companies. The ideal ones to buy are media companies.
The more eyeballs you control, the more power you will have in the future. By controlling eyeballs, you can also sell anything you want in the future.
That's why I bought the KISSmetrics website a few years ago for $ 500,000. During their peak, they had 1,260,681 million monthly visitors.
This is a lot of traffic.
I was running out of money when I bought the site, but when I merged it onto the NeilPatel.com site, I increased my lead count by 19% and made my investment in less than a good year .
In other words, this is your opportunity to strike and gain market share.
So when you see your competitors closing or slowing down their marketing, the goal is to double. You may not see the greatest return immediately, but in the long run you will.
Every time the market falls 20% or more, it takes about 536 days to recover. And we don't even know how far we'll go or when the ground will be.
If we recover, your earnings will increase and the ROI of your marketing expenses will increase.
Hopefully the corona virus will pass soon and have minimal impact on life. For now, try not to get in touch with others too much or go to crowded places.
You should read this Washington Post article as it breaks down great simulations of how the corona virus will spread and what we can do to reduce its impact on the world.
And as far as your marketing is concerned, this is the time for you to double. Do not be afraid when others are afraid. Do what Warren Buffett does … Be greedy when other people are scared.
In other words, double.
How did you see that the coronavirus affects your traffic?
PS: Please be safe and, if possible, stay inside.
PPS: To help a little, I opened the Ubersuggest Keyword Ideas Report and historical keyword data report. I know that many of you may face financial difficulties. Hopefully it will help you save a little money on marketing with the data.