Weekly Wrap: Marketing Insights and News for Week of April 13, 2020.

Weekly Wrap: Marketing Insights, advertising news, marketing analysis for week of April 13, 2020

It’s time for the Weekly Wrap! Here are the marketing insights, news, and analysis that deserves to be highlighted and separated from the noise.


DTC brands are struggling during COVID-19 - Weekly Wrap - One Portal blog

Can DTC brands survive COVID-19? (Fast Company)

DTC brands, on the whole, are struggling but there is optimism that things will improve.

  • DTC brands have seen a sharp decrease in revenue. Everlane: -25% (online sales); Away: -90% (general revenue).
  • Some investors are optimistic: “Some brands are unfortunately just not going to be able to survive this, but those that do are going to be in a stronger position.”
  • Evidence that brands have been over-invested in Social as an acquisition channel; rising CACs before the crisis – caused by increased competition and aggressive ad spending by VC backed brands – is most likely what set-up brands for a severe cash crisis during the pandemic.
  • The article asserts that DTC companies will need to rethink their growth strategy and consider not investing in online advertising as much as before (however, one of our Co-founders – Alec Prieto – provides a caveat to this in his LinkedIn article)


Ecommerce trends - Rockerbox - One Portal Blog - Weekly Wrap
Credit: Rockerbox

Ecommerce ad spend is starting to return to normal (Rockerbox // Ron Jacobson – Co-founder of Rockerbox)

For the last two weeks, e-commerce revenue has been at its pre-pandemic level – perhaps a sign that consumers are more comfortable staying and shopping at home.

  • Ad spend and revenue in the Travel sector has not returned to normal, however.


Autonomous robot in grocery store - Weekly Wrap - One Portal blog
Credit: Crunchbase. Autonomous robot in grocery store.

Robot manufacturers are trying to meet high demand (Crunchbase)

Aggressive promotions offered by fashion retailers will still yield results.

  • The COVID-19 pandemic has created an uptick in demand for autonomous robots in grocery stores, warehouses and even hospitals.
  • Companies such as Brain Corp. have seen a 13% increase in average daily usage in retail locations.
  • Xenex – a company that makes disinfecting robots for hospitals – has seen a 500% increase in business since the start of the year.
  • Simbie Robotics now have their Tally robots (autonomous shelf-scanners) deployed in 12 of the top 250 global retailers in AEMA.


Credit: SEMrush Blog

Who are the market winners by search traffic? (SEMrush Blog)

  • Remote Working platforms (no surprise there) – traffic to Zoom’s website has increased by 67 million site visits during the month of March.
  • Remote Services Software (again, no surprise) – the branded search volume for Slack, an instant messaging forum, jumped 82% from February to March, while Microsoft Teams jumped by 1014%. 
Home Fitness search dynamic graph. SEMrush Blog. Weekly Wrap. One Portal blog.
Credit: SEMrush Blog. Home Fitness search dynamic graph.
  • Home Fitness – in March, the search volumes for jump ropes increased by 123%. The online demand for yoga saw an 811% major increase, while fitness mats saw a 511% increase, and dumbbells, 397%.
  • Streaming Platforms – Disney+ have seen 232% increase in searches; HBO branded search +82%; Netflix branded search +83%; most surprising increase though was Kanopy: +122%.
Food delivery services growth in search volume since COVID-19. Weekly Wrap 04/13/20 - 04/17/20. One Portal Blog.
Credit: SEMrush Blog. Food Delivery services by search volume growth
  • Food & Grocery Delivery Services – searches (in general) +56%; the biggest winners are Instacart, Amazon Fresh, and FreshDirect.

For other verticals, check out SEMrush’s extensive blog post.



Cosmetics sales fall during COVID-19 pandemic. Weekly Wrap. One Portal blog.

Color cosmetics & condoms fall; essentials soar (Ad Age // Everscore ISI)

  • Trojan sales fell 21% during April – despite 62% of adults are having just as much sex as before the pandemic with 17% saying that they’re having more.
  • Lipstick, foundation, color cosmetics: – 44% (L’Oreal USA)– 25% (Coty); – 49% (Revlon).
  • Glad trash bags and Brita water filters, pushing company sales up 35 percent


AMC Network breaks away from traditional upfront model. Weekly Wrap. One Portal blog.
Credit: Media Post // Television News Daily

AMC Networks offers an upfront platform for agencies and marketers; plus access to it’s branded content studio for free during the pandemic (Media Post)

AMC was one of the first to break-away from the traditional upfront model.

  • The Upfront Connect site is a client-exclusive platform that allows marketers to preview upcoming advertising opportunities.
  • The Content Room is AMC’s branded content studio; they’ll give free creative and production capabilities to anyone that signs up during the pandemic.
  • AMC was one of the first to break-away from the traditional upfront model.


Takeways - Weekly Wrap - One Portal blog

Takeaways

Autonomous robots in groceries and retail will help workforce efficiency by doing menial tasks –> workforce can focus on keeping in-demand products in stock –> consumers weigh the longer shipping times on places like Amazon vs. risk of visiting a brick & mortar site –> more foot traffic due to consumer immediate needs being met –> potentially more advertising to bring in more customers.

Search ad spend share could increase if disruptor brands realize they could attempt to steal established brands’ organic traffic.

SEO will be a major focus; especially for brands that cannot afford too much paid-marketing

OTT ad spend will continue to increase with streaming viewership increases.



Insights from the Frontline - Weekly Wrap - One Portal blog

Insights from the Frontline (from client campaigns)

⬆️ Continued growth in conversions for hobby/leisure brands.

Deals of perceived great value are driving conversions for our clients that have been affected by COVID-19.

⬆️ Continued growth in conversions for hobby/leisure brands.

🔻 CPMs remain relatively low on the Open Web; CPCs on search also is lower.

📈 Increased demand for unified reporting with lay-offs and leaner marketing teams.


Recommendations

Diversify your digital marketing channels. (If you have the budget)

Optimize SERP as much as possible.

Seriously consider OTT.

Do some type of social-cause initiative. Even if it’s purely organic/non-paid. For instance, show your support for local businesses with blog posts and social media posts.


And that’s a wrap for this week!

Please leave your thoughts in the comment section below or provide your thoughts in an email to us.

See you next week! Stay healthy and stay strong.