Geoff Crain is Senior Director, Sales & Marketing at Kingstar Media.
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Advertising during the pandemic was uncertain and unpredictable for brands across all industries. Many cut funding or paused ad spend to keep costs down while others increased their budgets to maintain top of mind. Advertisers took the time to reformat their strategies to create the perfect ads and reevaluate who their audience was. The pandemic proved to be the perfect time for this, considering how markets and algorithms are always changing, especially when people are stuck at home. While things are falling back into a routine, there are some major post-pandemic changes that have stuck around and have even become the “new standard” for advertising.
Canada Vs. The US
Connected TV (CTV) boomed in the U.S. with everyone staying home—so much so that it fast-tracked the cord-cutting process. Canada saw an increase in CTV viewership, but it wasn’t as strong as in the U.S. However, Canada is typically a few years behind when it comes to movements like these, so it is expected to grow.
Both Canada and the U.S. saw an increase in using social media ads to promote support for small businesses and environmentally friendly brands. While this could have been generated by any number of factors, it also could have been a result of many people looking to make additional income as they were laid off or let go. People were using social media to promote their businesses or their loved ones’ businesses, and as a result, many turned to TikTok.
The pandemic alone isn’t necessarily the reason TikTok grew exponentially, but it is one of the major factors. With most people being home all day, the app gained more active users, and people began to create filters and audio to help their small businesses promote themselves. This is where the short-form video began to gain traction, catapulting the usage of short-form and user-generated content.
A Deep Dive Into Advertising During the Pandemic
Many advertisers were cognizant that the jump from cable to streaming content would happen, but not at the rate that it occurred. While there are high CPMs when compared to search and social platforms, there is a lot less competition, and advertisers who invested in it took advantage of that. It also has a lot of targeting and reporting options that linear television doesn’t.
TikTok took the world by storm, especially regarding advertising during the pandemic. People would spend hours on the platform scrolling through short videos. Advertisers who saw the appeal early on were able to adapt to the audience with little to no competition. The small businesses that partook helped to shape the new standard of short-form ad content. These are user-generated videos usually created by influencers and are organic in nature. While this is now the standard, it goes to show how important it is to constantly be aware of the ever-changing trends.
Many small businesses were heavily impacted by Covid since people weren’t able to leave the house. This shift was felt the most by mom-and-pop shops that weren’t online. The movement expanded across all corners of social media with hashtags like #supportlocal and TikTok audio that promoted small businesses. Similarly, when it came to supporting environmentally friendly and sustainable brands, people were quick to jump into the movement. Brands used ads to promote their products by highlighting sustainable packaging and recycled materials. This worked particularly well on TikTok since the video platform was able to showcase different aspects of the production and packaging process.
AI and VR also became huge in advertising during the pandemic because people couldn’t test products in person. There wasn’t the option to try a hat on or test the durability of a vase, so filters made it easy for people to see how they looked in a hat or how a vase would complement their home. While it is still a feature offered by various brands, it may only stick with brands that don’t have physical locations.
Post-lockdown, brands are transitioning from “we are in this together” messaging to “get out and be social” messaging. Some brands are using this to bring people to their physical locations or to update the viewer’s wardrobe by reopening. Others are encouraging people to use their services to make up for the lost time. Often these options are accompanied by promoting services and goods.
If there’s anything we can learn about advertising from the pandemic, it’s the importance of having a strong brand and paid social media strategy. In working with brands across industries, we have discovered that these strategies can lead to a higher chance of achieving target KPIs and marketing goals. It can help grow a business and lead to greater profits when compared to relying on organic growth alone.
Overall, there have been many changes, but there are a few that will remain prevalent during the next few years. I believe that CTV will continue to rise in popularity, especially with the rate that viewership is shifting. Similarly, DOOH (digital out-of-home advertising) will become more popular as people return to regular routines like the commute to work or social nights out. I think shipping promotions will continue, but not to the extent that happened during the pandemic. Instead, brands will look to drive in-store promotions and foot traffic. AI and VR filters to test products within homes or for people to “try” will continue to be popular. But these may only be applicable to places that offer international shipping or are strictly e-commerce.
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