COVID-19’S IMPACT ON MEDIA AND CONSUMERS

We are living in a situation never before experienced in the world and especially in Spain,  where Media Auditors  has its offices and we are feeling it in the first person, but that is also happening in Italy, France, Germany and USA and we want to convey some of our observations on the understanding that what  is happening in Spain can convert into something that sooner or later will eventually reach Mexico, logically with the logical differences between countries and have for sure that Mexico will not be the exception.

MEDIA CONSUMPTION:

A large part of society, concerned about the situation, is increasing its consumption of media to stay informed and to know the news of the virus’s expansion, especially on television and online media.

The consumption of graphic media (press and magazines) has disappeared, either because of the lack of immediacy (press) or due to the low interest in topics that are not of high priority at this time (magazines), in addition to the fact that it implies the displacement of people outside their homes to the place of sale of these media. The lack of movement on the street is making advertising in Out of Home inefficient. The radio medium has no habit of consumption within the home and attendance at cinemas is closed in the interest of avoiding the accumulation of people.

This leaves us once again with the medium that awakens the most attraction in immediacy, habit of use, group communication, need for approach and entertainment: the media “screen” thus shooting consumption in open TV, streaming, Pay TV and Digital.

CONSUMPTION OF GOODS AND SERVICES

Consumption has skyrocketed in some sectors, unfortunately others have been badly affected.

  • Initially, in the panic phase, the food, cleaning, and household industries have been overwhelmed by panic purchases that led to a momentary shortage of food, toilet paper and disinfectant products. This happened in the early days, those days when it was not yet known how the much-feared quarantine would manifest itself. Uncertainty led society to behave very atypically and in this way it unbalanced demand, thus affecting supply. However, calm came, once clear quarantine measures were implemented, where people stay inside their homes and can only leave to get supplies.
  • What is happening is that food products such as dairy, cereals, meat, water, etc… are having a higher consumption than in “normal” times: people including children who were usually in schools, being at home consume more, an overconsumption is occurring.
  • It is also notable a compulsive buying effect for fear of shortages: instead of a water can… two; instead of a carton of milk… two, and thus it is apparent that at the point of sale there has to be a continuous replenishment of the products.
  • And finally, being at home is producing a reduction in spending in the domestic economy (not spent on going to restaurants, going to cinemas or entertainment venues, not spending on non-first-need products such as clothing and footwear) that makes you feel like no money is spent and generates more food expenses.
Recommendation

The position at the point of sale and in the distribution channel is your specialty, our recommendation in our area of expertise, the media, is that if there is indeed a greater product turnover on the shelf, advertisers should keep their advertising investment, even increase it.

For this reason, and thanks to the fact we are seeing things in advance that will most likely be repeated in Mexico and other Latin American countries, our suggestion is not to cut the investment in media, and take advantage of this moment to stay in the consumer’s mind, to keep their investment in the screen media (TV and Digital),  since society is and will be more than ever in front of it, whether it is for entertainment, for information or just to feel connected to others.

Needless to say, but above all they apply common sense and direct information you possess

 

Luis Montila Luna

CEO Media Auditors

Crédito de Imagen: “Designed by Freepik”

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