Over two-thirds of businesses have seen a decrease in revenue since the start of the pandemic, according to a survey conducted by the Dublin-based Digital Marketing Institute (DMI).
It comes as no surprise as brands and retailers, especially smaller businesses, have decreased their overall marketing spend and are channeling their advertising online.
Marketing efforts have shifted to webinars, organic content, social media, SEO, and e-commerce, as digital paves the way in response to Covid-19. In a whitepaper released on July 1st, the prestigious institute says the global coronavirus pandemic has tested the readiness of all companies to adapt and change. It has challenged organizations - to adjust marketing strategies and react in a savvy manner - digitally.
Covid-19 has redefined the customer journey and experience. It has created an environment where the relationship between e-commerce and offering a personalised experience is nuanced and where digital efforts need to be stepped up.
Businesses across industries have seen their marketing budget cut, reduced, or altered to essential expenditure only. This includes marketing budgets, where over half of respondents to DMI’s pandemic survey confirmed their marketing budgets have been decreased.
Digital-first strategies are more important than ever, as despite overall budgets being cut, digital budgets are increasing. 49 percent of respondents focused their marketing spend on digital and 28 percent of those have been spending 90 percent or more of their marketing budget on digital rather than traditional strategies.
Survival of the digitally-fittest
While the industry did not foresee the intensity of the crisis, some fashion companies are finding that they are better equipped than others—largely because of their digital know-how, says McKinsey.
As has been witnessed, some apparel, fashion, and luxury companies haven’t survived the pandemic, others will emerge better positioned for the future, says McKinsey. Much will depend on their digital and analytic capabilities.
Image fashion cloud, courtesy