Fundamental consumer changes are be taking place among the uncertainty and fear surrounding the coronavirus, according to advertising and media industry analysts.
An obvious change is the general physical withdrawal from the market and a corresponding rise in digital activity. This will have longer term consequences.
The analysts believe this short term phenomenon could herald new behaviours in Australian consumers. More people will get used to, and like, shopping online.
“We believe COVID-19 will embed new consumer behaviours around online and delivery, potentially driving further industry consolidation and benefiting larger retailers,” write analysts at investment bank UBS in a note to clients.
While the travel industry (Qantas, Sydney Airport, Flight Centre) got hit hard by cancellations, sales at Australian supermarkets lifted by about 15% between February 24 and March 15.
"Demand is, however, likely to moderate nearer term, particularly if further distancing measures are introduced,” say the analysts at UBS.
At GroupM, Brian Wieser, global president of business intelligence, says the changes in behaviours that follow a crisis can create opportunities for marketers.
However, these changes impacting societies around the world do not necessarily mean that individual marketers should alter their media strategies.
“Marketers need to be mindful of long-time horizons during crises and make decisions on this basis,” he says in a market update.
“We emphasise that marketers should continually assess the relevance of a given medium for a given marketing strategy and creative message.
“They can also continually look for ways to add value to the consumers they service, the media owners they buy from and the societies in which they operate.
“A crisis like this will have many unfortunate consequences, but the changes in behaviours that will follow could create new opportunities for marketers to engage.”
Wieser, like many other commentators, points out that the world will eventually return to normalcy.
“If the choices marketers make during this period resonate, they and the world will hopefully come through all of this better positioned to thrive in the future,” he says.
In Australia, Olly Taylor, chief strategy officer, Host/Havas, says the experience in China indicates that certain digital behaviours have become more mainstream, such as the digital exercise category and online adult learning.
“Ecommerce itself has seen large penetration increases in previously hard to convince cohorts, namely the elderly and lower socio economic groups,” he says.
“Closer to home perhaps the biggest digital impact could be working from home (WFH). Will we love the independence and productivity, or will we miss the structure of human connection, and discipline?
“It will be interesting to see how technology and people themselves work as whole companies come into WFH en masse.”
The fascination with the coronavirus pandemic is high and has influenced streaming media choices.
According to analysis by MAGNA, movie titles Contagion, Outbreak, and Pandemic have become some of the most-watched content on Netflix.
“With people staying indoors, television and streaming video have seen growth in the markets that were the earliest hit by the outbreak,” says MAGNA.
“We expect that trend to extend to the countries that are in the earlier stages of containment.”
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