NEW YORK, United States – The coronavirus outbreak rocked the global fashion industry, resulting in bankruptcies, widespread leave periods and layoffs, and in an effort to cut costs, many companies have cut their marketing budgets, but because e-commerce sales brands are asking where they have to spend their marketing dollars now and in the coming year.
To highlight this topic, Brian Baskin, editor of BoF’s News and Features, was joined by correspondents Chavie Lieber and Alexandra Mondalek in our #BoFLIVE event.
“Many brands at the start of the pandemic … have reduced their marketing budget to virtually zero. It was simply the easiest expense to do when sales started to go down as the lockdowns started, ”said Baskin. At the same time, e-commerce was still active for most companies … [and] I think everyone pretty much realized … “We need sales more than ever, we need new customers, we need marketing.” ”
In this time of unprecedented uncertainty, people are wondering, what are the options?
Billboards and online advertisements
For brands reassessing their marketing strategies, now is the best time to get more for your money. Prices on various marketing channels, from billboards to social media ads, are falling. For example, the rates for ads on Google search results, Facebook and Instagram have fallen by 25 to 35 percent, according to data from brand performance company Within. But when it comes to traditional advertising channels like billboards and a lower rate, Mondalek warned brands to ‘think about it in a different way, which really speaks to the time we are living, rather than just a spring 2020 ad campaign to stick on ‘.
A notable example is Trainer who partnered with the Instagram account We’re Not Really Strangers, posting inspiring posts on a painted billboard in Manhattan to boost the mood.
Mondalek also encourages brands to use free resources, such as Within, a brand performance marketing agency. They have this thing called Retail Pulse, which is updated daily or every other day and provides information about the cost of buying ads on various channels like Facebook or Google and analyzes it daily
While brands like Macy’s, Ulta, Dillard’s and TJ Maxx pause their affiliate marketing programs to limit financial losses from the virus, and influencers see sponsorship deals disappear overnight, the era of influencer marketing lives on, according to Lieber because now more than ever people are glued to their phones.
“For certain influencers who really have a deep following, people look to them for content, for comfort, for entertainment … so the connections are now really stronger than ever,” she said. “The influencer industry is not going anywhere, it is still very strong, but there are major shifts.”
Right now, influencer rates are lower and many are offering more cross-platform promotion, Lieber said. “For a brand that may have been a little concerned about spending all their money on influencers, it could now probably be more bang for the buck because the influencer … will probably negotiate with you now because the deals are no longer true they were. “
To participate in #BoFLive, BoF’s series of digital events that provide insight, advice and inspiration, visit our calendar where you can find information about upcoming digital events.