Is the PPC damaging your business during COVID-19?

COVID-19 – The Pandemic, isn’t just harming the human wellbeing but also turning the effective business strategies into a feeble approach, prompting business loss. PPC (Pay Per Click), one of the most effective Digital Marketing tools, is a paid drive to your website. PPC proves to be an excellent way of targeting potential customers at the right time, expanding your site traffic thus the revenue. However, in this COVID-19 pandemic situation, PPC’s contribution to the industries has observed an unusual mixed outcome.

COVID-19 impact on PPC and Digital Marketing of the Industries

PPC can be beneficial for online advertisement, only if a click earns you more than your ad bidding amount. Let’s say if you bid for a business ad at 4$ per click and each click earns you any greater amount like 6$,400$,….etc, so the click is considered worth, which is currently working for only a few industries though.

The Pandemic has definitely impacted the search behavior of the people looking up to the situation, prompting a distinction in the business graph as well. Considering Google’s search behavior of the United States, a shift can be observed in Google search advertisement in this situation, which has started to diminish unassumingly, falling 7%  below average. Few industries are experiencing a tremendous profit in the business, on the other hand, few are in the halt situation and going through a threatening level of loss in the business.

COVID-19 Profit and loss industries

Traffic Growth-Covid19


Increased performance during COVID-19

Social Distancing, the requisite for the current situation, has expanded the reliance on the internet for activities like shopping, entertainment, education, official work, news, etc. Thus, due to the increase in demand, the companies related to these areas are procuring a colossal benefit, in fact, comparatively more than ever.

For the basic needs like groceries, medical help, and hygiene-related things, people are looking into online stores like Amazon, eventually adding up to the website traffic and affecting PPC and Digital Marketing. According to SearchEngineJournal, due to the automatic increase in online shopping and website traffic during the pandemic, Amazon has opted for a slight change in its business strategy i.e. it has minimized the investment in the GoogleAds since the end of January 2020.

Demand for medical advertisers-covid19

Demand for Medical Advertisers

The exhibition of the Media and Entertainment Sector has likewise raised during this period, being the only source of entertainment for now. People are showing interest in the related Ads for buying movies, documentaries, web series, subscriptions of apps like Netflix, Amazon prime, etc. To stay updated, people are getting progressively dynamic in news and articles, subsequently subscribing to the News Channels, etc. Similar is the condition with the Companies offering facilities like teleconferencing such as the zoom app, which has seen a substantial increase in the past 3 months. Hence, PPC is gaining a prodigious profit for these companies.


App Usage-Covid19

Increase in demand for zoom app-Covid19

Increase in demand for zoom app

Negatively Impacted Companies during the COVID-19

Apart from a few sectors, COVID-19 is no less than a mirage for others. Considering the business front, the economy is going through an extremely bad phase. Due to the necessary restrictions and safety measures enforced by the Government, many companies related to the sectors like travel, food, Shopping malls, local retailers, building and constructions, etc. have hit hard and are currently in the halt state. The decrease in the demand for traveling, temporary closure of the restaurants, building and construction work, etc. is adversely affecting the business, lowering the PPC conversion rates. In fact, since the COVID-19 has become epidemic in the United States, PPC conversion rates have dropped approximately by 21% on average.

Google conversion rates-Covid19


Travel and Tourism sector is one of the most affected sectors as people are staying at home to break the COVID-19 pandemic chain, eventually declining the demand for transport and tourism. Tourism companies, Airlines, Hotels, Car Rental companies like Ola, Uber, etc. are going through a rough patch due to the lower ROI over PPC. Therefore, to forestall business loss, the companies are opting to cut costs over advertisement and marketing.

However, you can take it as an opportunity to work on your advertisement campaign as due to the decrease in the PPC conversion rate, the CPC bidding rate has also observed a downfall, making it the most appropriate time to invest in the Digital Marketing of your product.


Travel and Tourism Sector-Covid19


Don’t Stop. Invest Smartly.

Though the situation is critical for the companies as the prevailing Digital Marketing strategies and ideas might not be working as expected, leading to a panic state. Being an optimistic team, we see it as just a phase, not the end, and work towards turning the hurdles into a stepping stone for success.

Cutting advertisement costs due to dropping Return on Investment during the pandemic, is not the solution to the problem. However, a smart Digital Marketing strategy could work here and prove to be a game-changer in the situation. As per our ‘Customer First’ philosophy, we are offering a helping hand in this crisis, to promote your business effectively, through our efficacious Digital Marketing services. So, without further ado, Hire a Digital Marketing Professional and get rid of the Marketing pressure. For further related queries and assistance Get In Touch with us.

COVID-19 impact on PPC_cta