The coronavirus (COVID-19) has been rapidly expanding since January 2020. In addition to an impact on health, the virus is also starting to have an impact on the online marketing industry. In this article we discuss the negative consequences of this but also the possibilities. Because in the end; one man’s misfortune is another man’s opportunity.
Product prices are increasing
Various webshops and suppliers implemented price increases in recent days. This is mainly due to the fact that companies are suffering from reduced production in China, but also because the demand for certain products has increased considerably. The majority of companies do this to prevent availability problems, but there is of course also a part that simply wants to take advantage of the situation. It is expected that the reduced availability, and therefore higher prices, can last a few weeks to months. So if you sell products, check carefully if they are available and whether the prices on your website are still correct.
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A large number of online stores have stopped or decreased their online advertising activity on Google Adwords and other platforms. A report from Bloomberg shows that online merchants spent six percent less on advertising for their store on Amazon.com in the last two weeks than a year ago. Less competition results in lower CPC’s so this could be in your advantage if you are promoting products that are not affected.
Affiliate links stop working
Due to the reduced availability of products and increased prices affiliate links for multiple products and websites have stopped working recently or caps have been lowered. So it could be good idea to ask your account managers if everything is still working as it should to prevent annoying surprises.
From offline to online
Although the outbreak has hit the Chinese economy badly, a rapid transition from offline to online has ensured that some tech companies are benefiting considerably from the epidemic. Popular live streamers get hundreds of thousands of new followers every day, entirely due to the fact that part of the Chinese population is locked up at home. Entertainment and commerce is currently shifting to the online world. Farmers struggling to sell their products through physical stores have gone live streaming to sell their supplies. A live stream on Taobao helped a farmer sell 5,000 kilos of tomatoes, 7,500 kilos of cucumbers and 3,000 kilos of strawberries.
Corona related products are top sellers
Where previously nobody thought about buying mouth masks or disinfectants online, these are now one of the most sought after and purchased products online. So if you can find suppliers or offers for these products, this is a good time to start promoting them. An example of such an offer is the Oxybreath Pro Mask from Clickdealer. This offer is available worldwide and pays $24 per sale.
Conclusion
The impact of the virus on online marketing seems to be fairly limited to date and there is certainly no reason to panic. However, it is wise to stay alert and to keep a close eye on the availability and prices of products and offers. In addition, it is of course always a good idea to keep your eyes open for new opportunities and take advantage of the recent market developments.