{"id":22831,"date":"2020-03-16T16:07:15","date_gmt":"2020-03-16T16:07:15","guid":{"rendered":"https:\/\/www.geotelecom.mx\/?p=22831"},"modified":"2023-09-27T14:27:54","modified_gmt":"2023-09-27T12:27:54","slug":"coronavirus-ecommerce-google-ads","status":"publish","type":"post","link":"https:\/\/www.geotelecom.mx\/en\/blog\/coronavirus-ecommerce-google-ads\/","title":{"rendered":"Coronavirus effect in eCommerce: Covid-19 in Google Ads (I)"},"content":{"rendered":"<p>This is probably one of the blog posts we would least like to be writing. However, we believe that being able to understand <strong>what is happening in the eCommerce world since the COVID-19 crisis. <\/strong>Contextualized within the advertising activity, it can help to make decisions and, above all, to devise actions that help mitigate damages according to the position in which we find ourselves.<br \/>\nIn the weeks to come, we will be sharing with you all our latest news about the <strong>trends and conclusions<\/strong> that we will draw from the experience of our customers. <strong>more than 150 customers<\/strong> with which we collaborate, taking into account that the verticals we work with are very varied and that the behavior of many of them can be extrapolated to the rest of the market.<br \/>\nThis Saturday, March 14, 2003, the President of the Government, after meeting with the Council of Ministers, decreed a State of Alarm in our country. This was something that had been expected since Friday and, logically, has had an immediate impact on business. In this case, we are going to focus on the effect it has had during the entire <strong>week-end<\/strong> in e-commerce stores:<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Contents\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.geotelecom.mx\/en\/blog\/coronavirus-ecommerce-google-ads\/#Impacto_del_coronavirus_por_sectores\" >Coronavirus impact by sector.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.geotelecom.mx\/en\/blog\/coronavirus-ecommerce-google-ads\/#Prevision_y_posibles_acciones\" >Forecast and possible actions.<\/a><\/li><\/ul><\/nav><\/div>\n\n<ol>\n<li>The <strong>advertising investment<\/strong> <strong>has fallen by approximately 35%<\/strong> compared to previous weekends. This drop has not been determined so much by the decision of the advertisers themselves to reduce advertising efforts, but by the behavior of the market itself, which, to a greater or lesser extent, has slowed down considerably these days in the vast majority of sectors.<\/li>\n<li><strong>The number of sales has plunged by 50% overall.<\/strong>\u00a0This was to be expected given the climate of health and economic uncertainty resulting from the closure of many companies, temporary layoffs or drastic reductions in productivity. <em>A clear example of this concern is provided by search trends related to the term \"ERTE\":<\/em><br \/>\n<figure id=\"attachment_22833\" aria-describedby=\"caption-attachment-22833\" style=\"width: 1152px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-22833 size-full\" title=\"Coronavirus Google\" src=\"https:\/\/www.geotelecom.mx\/wp-content\/uploads\/2020\/03\/tendencia-busqueda-erte.png\" alt=\"Erte and ERE at Google\" width=\"1152\" height=\"595\" srcset=\"https:\/\/www.geotelecom.mx\/wp-content\/uploads\/2020\/03\/tendencia-busqueda-erte.png 1152w, https:\/\/www.geotelecom.mx\/wp-content\/uploads\/2020\/03\/tendencia-busqueda-erte-300x155.png 300w, https:\/\/www.geotelecom.mx\/wp-content\/uploads\/2020\/03\/tendencia-busqueda-erte-1024x529.png 1024w, https:\/\/www.geotelecom.mx\/wp-content\/uploads\/2020\/03\/tendencia-busqueda-erte-768x397.png 768w\" sizes=\"(max-width: 1152px) 100vw, 1152px\" \/><figcaption id=\"caption-attachment-22833\" class=\"wp-caption-text\">Search trends in Google Trends<\/figcaption><\/figure><\/li>\n<li>Therefore, the <strong>revenue volume has dropped by about 40%<\/strong> during the weekend, which has led to significant losses in the profitability of advertising investments.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Impacto_del_coronavirus_por_sectores\"><\/span>Coronavirus impact by sector.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In general, the eCommerce most affected by this major downturn have been those that rely heavily on their physical store, suppliers that are not serving on time or logistics companies that are failing. Some of these examples are: <strong>workshops, gold trading, mattress stores, mattress stores, etc. <\/strong>and, in a generalized manner<strong> clothing stores.<\/strong><br \/>\nBut are all sectors behaving in the same way, and have all verticals fallen in the same proportion? Thanks to the analysis conducted by <a href=\"https:\/\/www.geotelecom.mx\/en\/who-we-are\/\" target=\"_blank\" rel=\"noopener noreferrer\">our team<\/a> we can say that there are a number of<strong> sectors within the eCommerce world<\/strong> that are not being affected as much and that, in addition, they are even <strong>obtaining great results<\/strong>. Based on our experience with our customers:<\/p>\n<ul>\n<li><strong>Grocery stores of basic necessities and\/or children's food:<\/strong> receive a <strong>20% more traffic, tripling its sales volume and revenues<\/strong> in many cases. This may have a very clear explanation, not so much focused on the shortage (which is not occurring in physical stores) but in the fact of trying to avoid these concentrations of people.<\/li>\n<li><strong>Parapharmacies<\/strong> are obtaining <strong>increases of more than 50% in revenues for virtually the same traffic<\/strong>This is largely due to a sharp increase in conversion rates. This could be due to shortages in neighborhood pharmacies or even reluctance to go to these establishments.<\/li>\n<li><strong>Sports nutrition ecommerce<\/strong> sales have been affected, but in a much smaller proportion, largely influenced by the <strong>growth of multivitamin products and flours for desserts and breakfasts<\/strong>The decrease in the number of products that are more purely fitness products is offset by a decrease in the number of products that are more purely for the gym.<\/li>\n<li><strong>Pet stores<\/strong> are having a <strong>significant increase in its traffic volume, which is up to five times higher than that of the previous year.<\/strong> to prior periods,<strong> proportionally increasing sales volume.<\/strong> The behavior of these cases is very similar to that of staple food products.<\/li>\n<li><strong>Appliances and technology<\/strong> have been verticals that have been quite affected, although to a lesser extent than the average, with the following products standing out in terms of sales in their product portfolio <strong>refrigerators, freezers and electric scooters<\/strong>. These products are directly related to food stockpiling and mobility due to the lack of public transportation in many places (although it is true that with the State of Alarm they could fall again). There is also an upturn in <strong>home exercise machines<\/strong>The company's products and services are available in its product catalogs.<\/li>\n<li><strong>The online sale of children's toys<\/strong> has been <strong>multiplied by 4<\/strong> in several cases, probably due to the greater amount of time the children will spend at home during these weeks. As for the <strong>material for adult handicrafts<\/strong> is also growing, but at a lower rate.<\/li>\n<li>The ecommerce for the sale of <strong>school supplies and printing materials<\/strong> prevent the fall, achieving <strong>grow above 10% during this period.<\/strong>. We understand that the purchase of this type of product is mainly supported by household supply.<\/li>\n<li><strong>Hardware stores<\/strong> traffic increases and sales tend to increase <strong>grow over 20%<\/strong>mainly due to the increase in demand for <strong>disinfectants, gloves, masks, disinfectants<\/strong>etc.<\/li>\n<li><strong>Home furniture stores<\/strong> maintain similar traffic rates to previous periods but their conversion rate soars, <strong>increasing in<\/strong> <strong>more than 50% sales volume<\/strong>. This trend makes a lot of sense, as everyone now has more time to assemble such furniture.<\/li>\n<\/ul>\n<p>In addition to this, it should be noted that <a href=\"https:\/\/www.thinkwithgoogle.com\/intl\/es-es\/\" target=\"_blank\" rel=\"noopener noreferrer\">internal Google sources<\/a> emphasize that <strong>the vertical most affected so far remains Travel<\/strong>not only because of fewer sales closures but also because of a large number of cancellations. And that other ecommerce verticals such as the retail sector, such as the <strong>video games, has experienced a significant growth during these days.<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Prevision_y_posibles_acciones\"><\/span>Forecast and possible actions.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Apart from all these trends, it is important to note that during these days many businesses have suffered increases in the cancellations of previous orders, but in principle from now on the purchases that will be closed will be within the context of the Alarm Status so that this KPI should return to normal values, as long as there are no problems with shipping deadlines.<br \/>\nWe hope that if you have an e-commerce store this information will help you understand what is happening in the rest of the sectors and you can contextualize this moment as something seasonal, and that we all hope it will pass as soon as possible.<br \/>\nFor our part <strong>we have already deployed a series of actions and recommendations for our different customers<\/strong>Over the next few days we will be bringing out different publications that we hope you will find entertaining and, above all, useful!<\/p>","protected":false},"excerpt":{"rendered":"<p>This is probably one of the blog posts we would least like to be writing. However, we believe that being able to understand what is happening in the eCommerce world since the COVID-19 crisis. Contextualizing it within the advertising business, can help us make decisions and above all devise actions that will help mitigate the damage depending on where we are positioned. Over the coming weeks, we will be sharing with you all the trends and conclusions we draw based on the experience of the more than 150 clients with whom we collaborate, bearing in mind that the verticals we work with are very varied and that the behavior of many of them can be extrapolated to the rest of the market. This Saturday 14\/03 the President of the Government, after meeting with the Council of Ministers, decreed a State of Alarm in our country. This was something that had been expected since Friday and, logically, has had an immediate impact on business. In this case we are going to focus on the effect it has had throughout the weekend on e-commerce stores: Advertising investment has fallen by approximately 35% compared to previous weekends. This drop was not so much determined by the decision of the advertisers themselves to reduce advertising efforts, but by the behavior of the market itself, which, to a greater or lesser extent, has slowed down considerably these days in the vast majority of sectors. Overall, the number of sales has plunged by 50%. This was to be expected given the climate of both health and economic uncertainty, resulting from the closure of many companies, temporary layoffs or drastic reductions in productivity. A clear example of this concern is provided by search trends related to the term \"ERTE\": Consequently, revenue volume dropped by around 40% over the weekend, leading to significant losses in the profitability of advertising investments. Coronavirus impact by sector. In general, the eCommerce most affected by this large drop have been those that rely heavily on their physical store, suppliers that are not serving on time or logistics companies that are failing. Some of these examples are: garages, gold trading, mattress stores and, in a generalized way, clothing stores. But are all sectors behaving in the same way, and have all verticals fallen in the same proportion? Thanks to the analysis carried out by our team, we can say that there are a number of sectors within the eCommerce world that are not being affected as much and are even obtaining great results. Based on our experience with our clients: Staple and\/or children's food stores: they receive 20% more traffic, tripling their sales volume and income in many cases. This can have a very clear explanation, not so much focused on the lack of supply (which is not happening in physical stores) but in the fact of trying to avoid these concentrations of people. Parapharmacies are obtaining increases of more than 50% in revenue with practically the same traffic, thanks in large part to the brutal increase in conversion rates. Here it could be due to stock-outs in neighborhood pharmacies or even reluctance to go to these establishments. Sports nutrition ecommerce has seen its sales affected, but in a much smaller proportion, largely influenced by the growth of multivitamin products and flour for making desserts and breakfasts, which compensate for the drop in the more purely gym products. Pet stores are experiencing a significant increase in their traffic volume, being up to five times higher than in previous periods, proportionally increasing their sales volume. We find ourselves in cases that have a very similar behavior to that of staple food products. Household appliances and technology have been verticals that have been quite affected, although to a lesser extent than the average, with refrigerators, freezers and electric scooters standing out within their product portfolio in terms of sales. These products are directly related to food storage and mobility due to the lack of public transport in many places (although it is true that with the State of Alarm they could fall again). Home exercise machines are also on the rise, as long as they are present in their product catalogs. Online sales of children's toys have multiplied by 4 in several cases, probably due to the increased time children will spend at home during these weeks. Adult craft supplies are also growing, but at a lower rate. Ecommerce sales of school supplies and printing materials avoided the fall, managing to grow by over 10% during this period. We understand that the purchase of this type of product is mainly sustained by household supply. Hardware stores increase their traffic and their sales tend to grow above 20%, mainly due to the increase in demand for disinfectant products, gloves, masks, etc. Home furnishings stores maintain similar traffic rates to previous periods but their conversion rate soars, increasing by more than 50% in sales volume. This trend makes a lot of sense, since everyone now has more time to assemble furniture. Added to this, internal Google sources emphasize that the vertical most affected so far is still Travel, not only because of lower sales closures but also because of many cancellations. And that other ecommerce verticals, such as the video games sector, have experienced significant growth during these days. Forecast and possible actions. Apart from all these trends, it is important to note that during these days many businesses have suffered increases in the cancellations of previous orders,<\/p>","protected":false},"author":42,"featured_media":22844,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[41,26],"tags":[],"class_list":["post-22831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce","category-google-ads"],"_links":{"self":[{"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/posts\/22831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/users\/42"}],"replies":[{"embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/comments?post=22831"}],"version-history":[{"count":0,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/posts\/22831\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/media\/22844"}],"wp:attachment":[{"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/media?parent=22831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/categories?post=22831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.geotelecom.mx\/en\/wp-json\/wp\/v2\/tags?post=22831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}