Covid-19 cases, Dow Jones and Facebook CPMs
The Covid-19 outbreak followed by the global stock markets plummeting has made waves in pretty much every aspect of our lives. For us as a marketing agency this becomes present in a rapidly changing digital landscape where consumer behaviors can change more or less overnight.
To look at the more immediate impacts we turned to see how the cost of advertising has been impacted. We compared the Facebook CPMs we see for our global clients with confirmed Covid-19 cases and the Dow Jones Industrial Average and we found some striking correlations. As you can see in the graph below the CPM has an almost perfect correlation with the Dow Jones over the past month. The finding is not unexpected but that the trends are so closely following each other is indeed eye catching.
CPMs are typically affected by competition and a decreasing CPM could be an indicator of reduced competition. In this case it is safe to say that the uncertainty brought along by the global crisis has made advertisers pull back their marketing budgets, reducing competition. This presents those still willing to advertise with reduced costs.
Unfortunately, these are the rough times we’re living in and we all have to find paths to navigate through as businesses, brands and people. In order to remain relevant and continue to contribute to the economy, we need to react with innovative strategies and show our communities that we care.
For us, as a marketing agency, that means to continue to serve our clients the best we can, connect to the right audiences and support their socially-distanced lives through the right channels, products and services. We’re adapting our messaging to the current situation even though it may not always feel comfortable advertising right now. We find that combining solidarity in the messaging with our clients’ products presents a unique opportunity to scale. This way we can ensure that we help our clients grow by solving relevant consumer problems.