21 Aug 2020
Posted in Consumer
Coca-Cola’s social media spending freeze ill-advised, it should instead convince customers to buy through this channel, says GlobalData
Consumers will be purchasing more groceries online during and following COVID-19, and they will be spending more time on social media. Instead of cutting its marketing budget, Coca-Cola should convince those consumers to buy its products through social media channels as social media is an important tool to utilize during the pandemic, says GlobalData, a leading data and analytics company.
GlobalData’s survey found that 61% of global consumers intend to spend the same or more time on social media than before as lockdown measures remain in place in some countries.
Coca-Cola has cut social media marketing budgets, as its competitors also cut ad budgets in protest of hate speech on social media. The corporate giant has reported its largest decline in quarterly revenue in 25 years, but sales in the last six months have, overall, kept pace with 2019.
However, Ryan Whittaker, Consumer Analyst at GlobalData, believes now is not the time to back down on marketing via social media: “As consumers have been furloughed or working from home, there has naturally been a huge drop in on-trade and on-the-go consumption. GlobalData’s research suggests over half intend to spend the same or more time shopping for groceries online. Consumers still want familiar, reassuring and indulgent products. Focusing on these consumers is going to be a winning strategy while many continue to work from home.”