How The Pandemic Has Changed Key Ad Sectors And The Challenges That Lie Ahead
GroupM is out with a new report examining key industry sectors that have seen dramatic upheaval during the pandemic, how those sectors have pivoted to stay connected with people amid massive behavioral change, and the implications for advertising and marketing services providers.
The auto industry, for example, was slammed hard early on with a 40%-plus dip in sales in April, but has recovered to levels that are flat or better. Carmakers shifted to direct online relationships with consumers, per the report, which concludes it will be vital for the sector “to invest heavily in consumer insights to integrate new desired experiences from customers in the buying process.”
For the CPG sector, ecommerce suddenly leapt to the forefront.
The report notes a staggering 277% increase in retail sales via ecommerce channels for food/beverage and personal-care companies in the second quarter of the year.
The report delves into the different types of commerce channels (third party, owned and operated among others) and how different sub-sectors might utilize them. GroupM estimates the total amount of consumer spending on ecommerce this year will be approximately $4 trillion. The surge has led many agencies to upgrade their ecommerce offerings to take advantage of that booming activity.
Digital platforms are becoming increasingly important for the financial-services sector, a trend the pandemic accelerated and another opportunity for the advertising/marketing industry to offer expertise. Banks and other institutions will need to sustain their investment in branding to reinforce trust, as well as a heavy investment in data-related infrastructure.
The report, accessed here, goes deeper and covers shifts in a few other categories and where they’ll need to focus going forward.