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As the COVID-19 situation is developing all over the world, businesses are being affected. Stock prices are going down, businesses are being forced to close either due to government restrictions or a simple lack of business.
If you’re a small business owner, you should be keeping an eye on the situation. Even if your business is not directly being closed by quarantine measures, like restaurants and bars are, isolation restrictions may affect your business. Perhaps the most major example of something that might affect your business is Amazon’s response to COVID-19.
As a major platform for small businesses, Amazon’s new policies are a big deal if you’re trying to sell through their platform. During the COVID-19 crisis, Amazon has announced that it is prioritizing only certain items for shipping, such as household staples and medical supplies. This is bad news if your business sells items that aren’t being prioritized, as Amazon may not take your new shipments.
No matter what your business, your business is probably budgeting for some ad spending. COVID-19 has brought with it some questions that face all businesses: is it worth it to keep up your ad spending during the pandemic? How can you tell if it’s worth canceling your ad spending?
The general trend for businesses during the pandemic has been to cut ad spending. According to our research, in March ad spending went down by a significant 20% over just two weeks, as businesses reacted to the situation COVID-19 put them in.
There are several reasons for reduced ad spending. One common reason is that the business is simply losing money. Many businesses have suffered quite a bit under the conditions imposed by COVID-19.
Businesses may or may not be able to afford to spend as much on ads as usual because of government restrictions or economic damage. Reduced budgets are a common way to attempt to keep a business afloat during the pandemic, and many businesses have chosen this option to protect themselves.
Even businesses that can still afford to advertise may choose not to. Some businesses will not benefit much from advertising during the quarantine. Restaurants, for example, don’t benefit from advertising when they are forced to stay closed. Amazon sellers, too, can’t make more sales with ads when they aren’t able to replenish their stock.
So, how should your business ad spending strategy react to the COVID-19 pandemic? The answer to this question depends on what kind of business you’re running. If your business is running low on resources, you may look to reduce your ad spend.
On the other hand, there are advantages to keeping your ad spending up during the pandemic. The more value you can generate from your ad spend, the bigger the audience your ads may reach. By consistently advertising, you can give the public the impression that your business is stable and reliable. Aside from that message, you will also be in the back of customers’ minds as a seller that’s still open despite the pandemic.
Remember, a large portion of the workforce is engaging in the work from home movement, this means more people than ever are in front of their screens, shopping for essentials, and ready to engage with your brand. This pandemic should be seen as an opportunity for growth for certain businesses that are well positioned to weather potential economic slowdown. By maintaining a strong marketing presence, your business may have the opportunity to reach new customers.
As a business owner, you should weigh the benefits of advertising with the costs. If you’re running a business that is very damaged by the quarantine, it might be better to cut back ads. Otherwise, keeping your ads running is a good option.
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