COVID-19 is causing a massive shift in consumer behavior that will likely change the way brands and influencers do business forever.
Across the globe, we can see how Coronavirus is shaking up business and consumer habits According to a recent study by IZEA (www.izea.com), 66% of social media users believe their social media usage habits have changed significantly due to them being confined to their home due to the Coronavirus. This is likely to come as no surprise given consumers have, until recently had little much else to do when social distancing and self-isolating.
Furthermore, the same study surveyed 949 US internet users to help predict how consumer behaviors would change due to the COVID-19 lockdown. Of those surveyed, 64% saw their YouTube usage increase, followed by a 63% increase in Facebook, and a 43% increase in Instagram usage.
In looking at buying habits and purchase behavior, 99% of respondents said that as they are stuck at home, they have been making more online purchases, 92% of which have largely been grocery items rather than clothes or other frequently purchased items. The likes of Amazon.com, Walmart.com, have seen a rise in consumer ordering but this may be short-lived.
What these findings are highlighting is that marketers have the opportunity to connect with a largely captive audience. Although we are seeing a lifting of restrictions across the globe, many new-formed purchase behaviors may remain in place for some time as consumers may be reluctant to go in-store once all retail outlets re-open. It is expected there will be a very cautious return and a number of outlets will focus on their online offering rather than placing any dependency on their bricks and mortar stores, (with exception of grocery).
As a result of consumers being confined to their homes, there will be a significant surge in social media content creation and consumption,” and marketers have an opportunity to connect with a captive audience seeking content, services, and entertainment.
How is this change likely to impact brands and influencers?
The recent surge in social media usage combined with high degrees of uncertainty in the global markets will have a massive impact on the influencer marketing ecosystem. For example, there has been an increasingly significant opportunity for brands to connect with their audience — one that has become steadily more hungry for content, education, and online social experiences.
As social media usage increases, however, so will competition, meaning brands will have to work much harder in order to stand out from the crowd. This presents a great opportunity for brands to increase their overall value to audiences. In a time of stress and uncertainty, consumers tend to place greater value on messages from those they follow and trust, making it important for influencers and brands to communicate with consumers in a genuine, authentic, and sensitive way.
Brands will see their influencer marketing dollars go further than they have in recent years and it is expected that brands will react relatively quickly to the changing environment by adjusting their overall campaign spending to reflect the surge in social media consumption as it unfolds.
Media Consumption in the Age of COVID-19
As the coronavirus outbreak has wreaked havoc across the globe, people’s time that would have otherwise been spent perusing retail outlets or going to live events is now being spent at home, on the sofa. During this period of social isolation, it’s no surprise that people have been consuming vast amounts of media. Across the generations, people have increased their media consumption as a result of the outbreak.
More Time to Kill
A study by Global Web Index found that over 80% of consumers in the U.S. and UK say they have consumed more content since the outbreak, with broadcast TV and online videos (YouTube, TikTok) being the primary mediums across all generations and genders.
Unsurprisingly, 68% of consumers have been seeking out pandemic updates online over any other activity. For Gen Z, however, it appears they had other plans, as they are the only generation who were more likely to be listening to music than searching for news.
Overall, younger generations have been more likely to entertain themselves by playing games on their mobile or computer. Millennials also stood out as the foodie generation, as they have been the most likely to search for cooking recipes or reading up on healthy eating.
The Need for Pandemic Positivity
While staying abreast of pandemic updates has been of importance for the vast majority of people, ultimately, a positive mindset and the ability to switch off (where possible) has been helping people cope better day-to-day.
It seems reasonable then that people have been more inclined to invest in new subscription services since they have been in isolation — almost one-third of the Gen Zers surveyed have purchased Netflix, followed by Disney+.
Understandably, people have been worried about how much time they have been dedicating to their screens. However, research by Fast Company suggests that screen time itself is no cause for concern. Rather, it’s the content people choose to consume that could have a significant impact on their psychological well-being.
Perhaps most intriguingly, the TV shows and movies that have seen an increase in popularity on Netflix are about pandemics — which could signify the need for people to fictionalize the chaos we have found ourselves in.
But regardless of what type of content people are consuming, the fact is that every generation has increasingly relied on their devices during this pandemic to inform and distract more than ever before, creating a huge opportunity for brands and media companies to engage with a captive audience.
