Coronavirus aka Covid-19 was first taken as a health crisis and as soon as it turned pandemic, it was no revelation that it jolted established businesses across the globe. The fast-paced world had no other option to stay home in order to stay safe. Many of the businesses shut for the indefinite time such as automobiles, whereas some of them got on doing Work from Homes (WFH) like App Publishers and Advertisers. Whatever the circumstances, it was never a smooth sailing since the global rise of Coronavirus back in February until now.
Though App Monetization wasn’t hit as hard as other businesses, still the capricious turns made it a state of hibernation and silence for both the advertisers and publishers. Things weren’t the same for all publishers and advertisers as this testing time turned out to be a boon in disguise for the entertainment, educational, teleconference and healthcare apps and the stakeholders.
There are no certain phenomena regarding the Covid-19’s impact on App Monetization World, even the juggernaut like Airbnb is facing the beat, whereas teleconferencing App Zoom is winning it out of nowhere.
The Publishers and Advertisers being two sides of the same coin generally faced serious challenges in terms of revenues, strategies, expansion or even continuing their services without abruption. Here’s how it happened:
Covid-19 impact on publishers
The game publishers have witnessed incredible growth generally. According to the Sensor Tower Report, games witnessed 50% growth in the first quarter of 2020 and China heavily added in these numbers. On the other hand, publishers on the receiving end during this ongoing turmoil were associated with app categories like Sports, Navigation, and Travel. The cancellation of mega sports events worldwide and lockdown situation led Sports and Travel apps to this ordeal.
The Digital Payment, Entertainment, Grocery and Healthcare apps witnessed a growth following the games. But still, that sufficed as the ad budgets were opted out by most of the advertisers across the globe. Consequently, that made a popular ad format like Video Ad in hot waters as the prices for it were dropped down to 20% as compared to that in the normal days. Even during these tough times, ConsoliAds stood tall as one reliable ad network for the publishers via its Auto Ad Mediation feature. The leading ad network assured max CPM using its unbiased mediation and having thousands of reliable advertisers on board as well.
Covid-19 impact on advertisers
This unprecedented Coronavirus put hiatus to all the happenings around the world and that indeed turned out distasteful for the advertisers. As the people’s priorities changed, the advertisers had no other option than pulling out of the ongoing ad campaigns as it was ideally not the time to advertise the targeted audience confined in the home. So, that’s when 76% of companies look onto slash the advertising budgets for the ongoing year.
As the demand for app advertising dropped significantly, it also dragged the CPM down, impacting the publishers directly. The effective video Ad prices were even stashed as Advertising demand fell to a new low. But still, many advertisers were there to avail the lesser advertising prices with locking it for brand awareness rather than mulling for conversions.
Does situation get back to normal for app advertisers and publishers?
The app advertising fraternity is staunch about things overcoming the Covid-19 impact by the end of this year or the early next year. But now as the Coronavirus cases are declining across the globe and people are getting back to normal with following the SOPs, the higher Cost per Mille (CPM) is set for June as compared to that of in April. For sure that would settle the losses for the publishers in the first place, but it also denotes the potential conversion for advertisers as things are heading back to normal.
ConsoliAds as an ads network and ad mediation service provider is playing a pivotal role in for publishers and advertisers during this crisis with offering Programmatic advertising, unbiased mediation, and advanced reporting.