The coronavirus pandemic has taken virtually every sphere of everyday life by storm. Companies have had to respond to an unprecedented scenario and change what they do and how they do it. Many have made the conservative decision to cut back on their investments. Forecasts indicate China News that the fall in investment in advertising is going to be brutal and most of the media have already noticed a stop in investment in ads .
The impact of the crisis will not be limited only to investment in advertising and related budgets, but will cut across the entire field of marketing and advertising. In fact, it already is. This is what the latest Gartner study on the matter has shown.
The consultancy has conducted a survey among marketing leaders and chief marketing officers to determine if the pandemic was already affecting their budgets. The answer is clear: it is doing it. 65% of those surveyed acknowledge that they have already seen their budgets cut moderately to significantly due to the impact of the coronavirus and the disruption it has caused.
All this, they point out from the consultancy, should push marketers to react and implement measures from now on to survive the storm or, rather, for their marketing strategy to do so. Gartner recommends starting now to make cost optimization decisions, implementing plans or creating them if necessary. This is important, above all, because the consultant's analysts do not believe that companies are prepared for this context.
"Marketing organizations are ill-prepared for the impact of COVID-19 on the global economy and consumer sentiment and the crisis will only accelerate the budget difficulties that we saw beginning to develop in 2019, when marketing budgets started. to decline, "says Ewan McIntyre, an analyst at Gartner.
Worrying forecasts for the future
And the future, looking at it from this peak moment of the coronavirus crisis, does not seem easy at all. 34% of companies expect their operations to suffer from the coronavirus, reducing their volume, and 10% even assume that they will be severely damaged. 2% of those surveyed indicate that they are going to completely cease their business operations.
McIntyre sees the crisis as a tipping point. There will be a before and after the coronavirus for marketing budgets. After the pandemic, the decline and reduction of spending will come. "It is critical that marketing leaders act now to help mitigate the unavoidable risks to those budgets," says the expert.
How to survive the debacle
The key to surviving the debacle is not just positioning yourself with an eye to the future, but also making efficient decisions. Analysts have already pointed out certain behavior guidelines in times of crisis, which help to focus on strategy. From Gartner, they point out two crucial points to protect budgets and marketing activity.
The first of those points is in the team. You have to have what they call a "tiger team," a highly specialized and situation-focused group of professionals. They will be the ones who analyze, propose and outline what the marketing team should do during the crisis.
But the team's work cannot stand alone. The second key point is in constant analysis. The strategy must go through a recurrent and real-time adjustment of the scenarios and decisions and a constant and rapid analysis of what is done (and if it works).