The Covid-19 outbreak is changing the way we live and shop. It even affects the way we use social media and how businesses use their advertising budgets. Unfortunately, the coronavirus pandemic hit businesses from literally all industries. However, some positives did emerge. An example of this is that Facebook ads are now more affordable.
Facebook affected by coronavirus
Because businesses lost sales, their advertising budgets went down. This instantly affected Facebook because advertising volume went down. While more people spend time on the social network, advertisers limit how much they spend. Most of the revenue Facebook has comes from ads. This means the social media giant is losing a lot of money because of coronavirus.
Cost per click goes down
As Facebook ad spend goes down, the cost per click takes a hit. This is not necessarily bad for businesses that can afford to spend money on Facebook ads because it means that PPC campaigns are more affordable. Online sales are not reduced. In fact, since people are in self-isolation, they buy more from online stores. However, businesses that rely on a brick and mortar store cannot afford to buy ads anymore. It is just those that have a way to generate sales online that can profit from Facebook’s pay per click cost going down.
What are businesses doing?
As already mentioned, the very first thing that changes is that businesses have less money available to spend on ads. This makes them want to be highly focused on the efficiency of the ads they run so that they can stand out.
Businesses that do not have an online store might end up having to close their operation.
What should you do?
Remember that the best choice for a brand is not the best one for another. This is why you need to conduct research and figure out if you should increase your Facebook ad spend or not. However, there are two scenarios that are quite obvious:
When you have an online store/presence
If there is a way in which you can generate revenue online, using Facebook ads right now is a good idea. Prices are lower than they were for a long time and if the coronavirus pandemic continues and businesses do not react, clicks will become even cheaper. However, this does not mean you should run online Facebook campaigns without optimizing them. Learn how to boost all social media channels used first.
When you do not have an online store/presence
In this case, it is time to invest in the creation of your online presence as soon as possible. There is a very strong possibility that countless companies will end up going bankrupt because of the self-isolation that people need to respect. Those that only rely on real-world interaction will be the first affected.
Facebook ad revenues go down because businesses re-think their advertising budgets in the middle of the coronavirus pandemic. This is something that will hurt the social network but can be a very good opportunity for some companies because PPC cost is lower.