Coronavirus has posed serious threat to giant World economies. Key players in the world, among them United Kingdom, Italy, France, India, China, Germany, and Japan, have not been spared either. China being the most hit after recording the first corona case, the country has experienced complete shutdown, threatening an already strong GDP.
Commonly referred to as COVID-19, the deadly infectious virus has sent most businesses down the cliff since operations in most sectors have stalled. Several companies across the globe have shut down in an attempt to curb spread of the deadly virus.
The experience has not only affected businesses but posed a deadly threat to the digital marketing industry, which solely thrive in a healthy business environment. Businesses being paralyzed is a clear indication that operations of digital marketing remain grounded since digital marketing can not survive without other players in the sector.
Though economic experts say the effects are short term, the recovery process for some businesses might be a challenge which might, in the long run, lead to collapse of small entities.
Sweeping across several nations in the world, the virus has had an adverse effect on the survival of several businesses. The worst-hit being China which reported the first cases, the virus has crippled operations of most entrepreneurs who rely on merchandise from the country thereby negatively impacting online market place.
A concerted effort by the World Health Organization (WHO) and various stakeholders have tried to contain the situation leading to the recovery of over 70,000 COVID-19 patients. At the moment, the primary concern sending jitters in most economies is the fact that despite attempts to control spread of the virus, several new cases are still being reported daily thwarting gains made in controlling the spread.
However, the worrying trend is that should all factors remain constant, the digital marketing environment might, to a greater extend, slow down steadily or collapse due to inactivity in several sectors of the economy.
Research conducted by various experts in the industry intimate that the digital marketing sector has lost approximately 1 $ Billion during the first phase of the COVID-19 outbreak. The impact is projected to worsen since the situation is still deteriorating, coupled by the shutdown of major economies across the world.
So far, several sectors have canceled various events and operations. A stall in the supply of products in the retail market, including transportation of car parts, petroleum, loss in the tourism industry, closure of schools along with a threat to the e-commerce and gaming industry raise serious concern about the fate of business environment.
Tech companies are also on the verge of experiencing loss of revenue due to inactivity in most sectors of the economy, which rely on technology to facilitate operations. China is reported to have drastically reduced amount allocated to online advertisement in order to monitor the business environment. The effects of COVID -19 has led to high budget cuts in the digital advertising industry.
On the contrary, e-commerce in some Nations may experience a spike in performance since most citizens avoid visiting physical stores for fear of contracting the COVID -19 virus. According to a recent survey, majority of citizens in these countries are likely to buy via online stores should the effects of COVID -19 persist. This is a clear indicator that the digital marketing environment may, in one way or another, either be affected or boosted depending on the economic indicators attributed to the impact of Coronavirus.
Meanwhile, the effects of Coronavirus on digital marketing cannot be underestimated. COVID-19 has caused severe disruption in the digital marketing sector and, to a greater extend, contributed to losses in various sectors attributed to a slow down in the economy. This has resulted in uncertainty leading to reduced spending on advertising online.
In this regard, advertisers have allied fears of a looming drop on advertising revenue attributed to the impact of COVID- 19 that has so far disrupted operations in the digital marketing industry.
Cutting across several sectors in several nations, the Corona virus is posing a threat to the survival of several businesses with World economic power China being the most hit. Several entrepreneurs rely on China to export their sales supplies. Due to the current shut down, the effect is threatening to cripple several businesses that might soon be forced to shut down should all factors remain constant.
COVID -19 has caused a ripple across the world, leading to economic meltdown in most countries. A vibrant economy thrives in an environment where theirs a capacity to procure capital, expand, and even improve technology. In the current situation where most businesses have been shut down to control the spread of Coronavirus, the GDP of most countries across the world seems to be facing the worst litmus test that has never been envisaged before.
In conclusion, digital marketing and entrepreneurship are dependent variables. Generally, the survival of a healthy digital marketing strategy is dependent on the prevailing economic environment. Ripple effect caused by spread of the deadly COVID -19 virus is threatening to water down gains made in the digital marketing sector.
Consequently, most businesses have literally grounded as the fight to curb spread of Coronavirus remains relentless, thereby impacting negatively on profitability in the digital and Search Engine Optimization industry.