It’s hard to ignore the uproar in the streets arising from racial injustice among a vast number of factors. All of this in the midst of a pandemic that has disproportionately ravaged impoverished communities and communities of color.
The impact of COVID-19 has invariably reached black-owned businesses as well. During the widespread shutdowns, working black business owners experienced a significant decline with a stark 40% decrease.
While black business owners weren’t exclusively impacted by COVID-era restrictions, they, the immigrant business owner community (36%), and the Latino business owner community (32%) experienced a disproportionate amount of the hardship among the 22% total decrease in active business owners.
The country and the black community are coming to grips with high unemployment, insufficient social services, and a historical lending gap that traditionally turns a blind eye to black-owned businesses, which has led to the loss of nearly 450,000 businesses that work to prop up the black community.
Consumer Trends
Search
- Search is proving to be one of the most effective and agile channels during COVID-era as shoppers convert at a greater rate from search queries.
- CPG category performance is up across Microsoft’s Audience Network. Clicks are up 50% during COVID.
- Consumers are turning to online channels for a number of essential products, even as businesses continue to open and restrictions loosen.
- The convenience of online shopping seems to be a trend that is remaining consistent as people are more reluctant to leave the comfort and safety of their homes.
Shopping
- In a survey of 500 consumers, ThinkNow found that consumers are overwhelmingly turning to large online retailers for their shopping needs.
Activity by Category
- With the exception of a few industries, most have seen growth in interest and engagement.
- Retail categories have been performing consistently WoW, even as COVID exerts less and less influence on regulating shopping habits.
Business Trends
Advertising
- While some businesses have pulled back and adjusted ad spend, 60% are still spending and refining their strategies.
- As CPCs and CPMs decrease there’s more opportunity than ever to break into a larger portion of the market.
- Brands are taking the hint and switching up their creative to accommodate for the new circumstances many of their potential customers and current customers find themselves in.
- Staying relevant requires fresh creative to keep up with the changing world.
- Social and search spend are bouncing back the fastest as brands find it necessary to pivot and test their new creative and messaging quickly and efficiently.
- These platforms are also seeing the most growth and success as shoppers venture online.
This article originally appeared in the HawkeMedia blog and has been published here with permission.
