July 2020 Social Media & COVID-19 · July returned the highest “get worse” expectations for the next six months. ... SOCIAL MEDIA PLATFORMS USE SOCIAL MEDIA ATTITUDES 60% Social

© Borrell Associates, 2020

July 2020Social Media & COVID-19


Summary PointsJuly 2020 Panel Survey: Social Media & COVID-19

➢ Compared to the three prior months recorded, more SMBs think economic conditions

will GET WORSE in the next six months. In July, a full 50% said they believe the next six

months will worsen. The political environment is causing that greater shift in negativity.

(Slide 3)

➢ Half of SMBs surveyed use Facebook and Instagram for marketing /advertising purposes.

TikTok surpassed Snapchat as a marketing vehicle. (Slide 4)

➢ Social media is an essential part of most SMBs marketing strategies, but it’s only a part –

not the full scope. (Slide 5)

➢ One in five have begun spending more on social media during the pandemic, and more

than half of those increased spenders have cut another media to fund their increases.

But overall, SMBs are spending modest amounts on social media. The majority of the

increased spenders expect their increased social media spending may stick around after

the pandemic subsides. (Slide 6, 7, & 8)

➢ SMBs that increased their posting frequency, began using more video/graphic elements

or posting Live videos expect that they will continue these habits in the future. (Slide 7)

➢ While Facebook is seen to be impacted the most by negative news cycles, it is still the

platform that SMBs trust the most when it comes to metrics. 85% have some level of

trust in Facebook, metrics, and 65% have some or great levels of trust. Yelp suffers the

most here. (Slide 9 & 10)

➢ Social media is becoming synonymous with negativity, but only about a quarter of the

SMBs surveyed say they are very or extremely concerned about their company’s message

showing alongside negative news in social media feeds. One in three SMBs have changed

their social media plans as a result of negative breaking news. Few change their social

media plans in reaction to the trends of bigger brands. (Slide 10 & 11)

➢ Negative on social media is not just regarding the content a message may show up near,

it’s also in relation to negative reviews and posts about a company’s advertising message

or products. Half of SMBs surveyed said they have been spoken negatively about by an

upset customer on social media. Quite a few SMBs have hidden or deleted negative

reviews/comments due to fake or inaccurate information, and many worry about the

reactions their content might elicit. (Slide 12 & 13)


SMB OUTLOOK TURNING NEGATIVE

July returned the highest “get worse” expectations for the next six months. Optimism is retreating among those who took the latest SMB survey

During the next six months, do you think economic conditions for sustaining a small business in the U S will get better, get worse or remain about the same as they are right now?

Source: Borrell SMB Panel Survey, March n=180, May n=176, June n=213, July n=210

Why do you think things will GET BETTER in the next six months? n=33

March May June July

Get worse 25% 38% 26% 50%

Remain the same 62% 19% 38% 30%

Get better 12% 44% 35% 18%

No opinion 2% 0% 1% 2%

50%

Why do you think things will GET WORSE in the next six months? n=100

Political/ leadership 24%

Adapting – new normal 18%

Reopening 15%

Managing disease/ vaccines coming 12%

Consumer confidence/sentiment 12%

We’re at the bottom 6%

Other 12%

Another surge/ lockdown 42%

Political/ leadership 32%

Unemployment impact 9%

Consumer sentiment 7%

Other 10%

Continued business closures, high unemployment and no end to pandemic is predicted until 2021

New stimulus packages, hopefully everyone returning to work under strict guidelines regarding health.

Big increase since June

With the elections approaching, hopefully things will change for the better.

Significantly higher than three prior months

Big increase since June

Big decrease since June

the vaccine for the covid virus will be out and will improve the economy

I'm an optimist, and I also feel that we are an innovative people, and that we will find a way to operate in the 'new normal'. I hope I'm right! 🤞

No leadership in government to establish and mandate safe practices to conduct business, from going out as a customer to keeping employees safe.

Without a Covid vaccine, there’s no good possibility of getting back to some type of normal. With a vaccine not readily available until 2021 the next 6 mos. will be a challenge for all small businesses.


SOCIAL MEDIA USE & ATTITUDES

More than half of SMBs are using Facebook and Instagram for advertising/marketing purposes. TikTok use surpassed Snapchat in the most

recent survey. Overall, SMBs believe they need social media and that it’s working at least as well as it did a year ago.

Source: Borrell SMB Panel Survey, July = 210

Have you used any of the following platforms for advertising/marketing purposes in the past year?

Showing % of respondents who use each.

Social media is a necessary evil for my business

#1 Facebook 88%

#2 Instagram 52%

#3 LinkedIn 35%

#4 Twitter 26%

#5 Yelp 15%

#6 Pinterest 11%

#7 TikTok 5%

#8 Snapchat 3%

#9 Reddit 2%

#10 WhatsApp -

None of these 9%

Please rate your level of agreement with the following statements.

Showing % who Agree or Strongly Agree (Among users of 1+ platform n=191)

SOCIAL MEDIA PLATFORMS USE SOCIAL MEDIA ATTITUDES

60%

Social media is the BEST place to reach my customers right now

47%

Social media metrics are easy to understand

45%

Social media targeting is accurate

40%

For my business, social media does NOT work as well as it did a year ago

18%


SOCIAL MEDIA ATTITUDES

Social media users find social media to be an essential PART of their strategies


Please rate your level of agreement with the following statements. Among users of 1+ platform n=191)SOCIAL MEDIA ATTITUDES

Facebook ad targeting used to be better, but it has gotten more difficult and less targeted for job posts. Apparently, there is a new rule that you can only use geographic targeting instead of adding interests, such as health care and nursing.

I don't think it's an evil, I think it's a help!

Good, bad, and ugly. Definitely the way to reach the younger generations. Not always a good choice -depending on the cost for ads. Influencers a money waste.

I post something about my biz every day on Facebook.

It's an essential tool for me.

I believe it belongs in today's Media Mix for advertising/ marketing campaigns, but not use solely by itself

Social media is a solid tool to reach a segment of my target market, however, it is a smaller segment,

certainly not a majority.


SOCIAL MEDIA CHANGES DURING COVID-19

Many SMB respondents have seen more website traffic and have posted social media content more consistently during the pandemic. One in five has increased

social media spending, but only one in ten has increased lead conversion. The increase in spending is often due to cuts in other areas, not new spend.


Since the COVID-19 pandemic emerged, which of the following (if any) has your company been doing more of / or seen more of in regard to SOCIAL MEDIA MARKETING? Select all that apply

COVID-19 IMPACT ON SOCIAL MEDIA MARKETING

12%

3%

8%

11%

17%

18%

19%

20%

24%

27%

28%

34%

40%

42%

None of these

Other (please specify)

Sponsored more posts of affiliates orinfluencers

Converted more leads

Seen more reviews get posted about ourcompany

Reviewed our audience metrics more closely

Scaled back marketing activity due to negativepolitical and social tone

Increased our social media spending

Posted more Live videos

Seen more comments on our posts thanbefore

Created more video / graphic elements

Responded to more direct messages

Posted content more consistently

Seen more website trafficSeen more website traffic

Posted content more consistently

Responded to more direct messages

Created more video / graphic elements

Seen more comments on our posts than before

Posted more Live videos

Increased our social media spending

Scaled back marketing activity due to negative political and social tone

Reviewed our audience metrics more closely

Seen more reviews get posted about our company

Converted more leads

Sponsored more posts of affiliates or influencers

Other (please specify)

None of these

55% of those who

have increased their social media spending

did so by cutting something else.

WHAT GOT CUT?NEWSPRINT

35%RADIO

20%TV

15%EVENTS

15%Other: 35%

(Other answers: direct mail, traditional media, programmatic)


SOCIAL MEDIA SHIFTS THAT MAY STICK

Overall, most SMBs expect many of the shifts they’ve seen in the market and within their own social media strategies will continue after the pandemic

subsides. Eight in ten who have started posting more content to social media expect they will continue doing so in the future. Same applies for using video/

graphic elements. These activities will become the new “norm”.


When the pandemic situation subsides in your area, will those changes to your SOCIAL MEDIA MARKETING continue and become a normal part of your business or will those changes return to pre-COVID levels? Our current level of…. (Each row asked of those who said they are doing this more now)

EXPECTED FUTURE OF SOCIAL MEDIA MARKETING

n=80

77

65

54

52

45

38

36

35

32

21

16

How to read: 80 SMBs said they have seen an increase in website traffic during the pandemic. Of those 80, 55% believe they’ll continue to see the same level of traffic they have now once the pandemic subsides; 14% believe their website traffic will go back to pre-COVID levels, and 31% don’t have a guess as to what will happen.


SOCIAL MEDIA SPENDING

Those who have increased their spending on social media have often cut something else to fund the new investment. This investment in social media is expected to continue after the pandemic subsides. The level of investment in

social media is modest even with the increase.


Since the COVID-19 pandemic emerged, which of the following (if any) has your company been doing more of / or seen more of in regard to SOCIAL MEDIA MARKETING? (n=191)

20% of respondents using social media have increased their spending on

this channel of marketing in since the pandemic emerged.

When the pandemic situation subsides in your area, will those changes to your SOCIAL MEDIA MARKETING continue and become a normal part of your business or will those changes return to pre-COVID levels? Our current level of…. (n=38)

71% of respondents who have increased their social media spending expect

to continue spending a their current level when the pandemic subsides

Where has your increased social media spending come from? (n=38)

55% of those who have increased their social media spending did so by

cutting something else.

What did you cut to fund your social media spending during the COVID-19 pandemic? (n=20)

Print, Radio, TV, Events

About how much money have you spent so far in 2020 boosting posts or advertising on social media platforms?

ONE IN FIVE HAVE INCREASED SPEND DURING COVID

MOST NEW SPEND FUNDED BY CUTTING SOMETHING ELSE

NEW SPENDING LEVELS EXPECTED TO CONTINUE, NOT RETREAT

BUT, MOST HAVE STILL SPENT LESS THAN $1500 THIS YEAR

26%

44%

23%

7%0%

51%

30%19%

$0 $1 to $1500 $1,501 to $20,000 Over $20,000

Total Social Media Users (n=191) Increased Spend during Pandemic (n=38)

Total Increasers

AVG $2,300 $10,500

MEDIAN $400 $1,100


SOCIAL MEDIA METRIC TRUST BY PLATFORM

Those who have spent more or started spending on social media are likely to say it’s provided some or greater improvement. A higher percentage of those who

have spent more or started spending on SEM “don’t know” if the increased spend has made a difference.


n= 184 109 74 55 31

How much trust do you have in the metrics reported by each of the following social media platforms? (Asked among those who said they use the platform for advertising/marketing, only showing those with sample sizes >30)

HIGH LEVELS OF TRUST IN FACEBOOK

The demographics are limited and unverified on social media. Its based primarily on user input and behavioral data - which is not always a true indicator of intent. Facebook will even say income is based on zip code demographics not verified user demos. It cannot guarantee people are homeowners - but interest is homeowners

Some how, The "algorithm" decided I was a Chinese restaurant!!! My tech can't through to to anyone to make a change. We serve senior citizens who need to get to medical appointments.


IMPACT OF NEGATIVE NEWS

Of the social media platform presented, Facebook and Twitter are seen to be the most impacted by negative news cycles. Pinterest is shielded from negative news more than other platforms. SMBs are not heavily concerned about the impact of

negative news on their social media post or ad placements within feeds.

Regardless of if you’ve used any of these specifically for business purposes, which of the following social media platforms do you feel is MOST and LEAST impacted by negative news cycles? Please select one “most” and one “least”. (n=210)


Has your company ever paused or changed your social media schedule of posting or advertising as a result of negative breaking news? (n=191)

NEGATIVE NEWS CYCLE IMPACT

PLATFORMS IMPACTED BY NEGATIVE NEWS CYCLES

1 in 3, or 35% of SMBs

surveyed have changed or paused their social media plans due to negative breaking news

Please rate your level of concern with having your company’s message shown alongside negative news in people’s social media feeds (n=191)

NEGATIVE NEWS CYCLE CONCERN

15%

31%27%

18%

8%

Not at all Slightly Moderately Very Extremely


IMPACT OF BIG BRANDS’ DECISIONS

SMBs do not often follow big brands when they made sweeping changes to social media ad spend due. Master marketers are more likely to be aware of

what the big brands are doing and consider it, but SMBs are largely unmoved.


INFLUENCE OF BIG BRANDSWhen you see that large brands are cutting / pausing / stopping social media advertising, what kind of influence does that have on your company’s decisions?

43% 41%

15%

1%

54%41%

4% 0%

We consider what they'redoing but don't always

make decisions around it

No influence whatsoever I am unaware of newsabout major brands' activity

in social media

We try to follow what thebig brands do

Total Social Media Users (n=191) Master Marketers (n=68)

We are small enough that we don't need to follow the trends of large companies. We also can't afford to stop using social media.

Large brands make political changes all the time that often have very little to do with reality or true care. … Its all fake, to make a buck and save budget during COVID.

They are making these decisions based on their politics and we don't make advertising decisions based on our political beliefs.

This is being addressed on a case-by-case scenario, in part dependent on what we believe our clientele feels about each case.


DEALING WITH NEGATIVE NELLIES

SMBs do not often follow big brands when they made sweeping changes to social media ad spend due. Master marketers are more likely to be aware of

what the big brands are doing and consider it, but SMBs are largely unmoved.


BEING BLASTED ON SOCIAL MEDIAHas your company ever been blasted (spoken negatively about) on social media by upset customers?

'Had others defend us because attack was false. Basically ignored bad reviews. When concern is legitimate we reach out privately to see how we can correct our mistake.

'Try to handle by contacting the customer individually, if it's something minor, then not getting into a big battle on social media

Respond with facts and hope that readers will understand, we are just trying to do the best we can in these unprecedented times.

51% of SMBs have been blasted on

social media by an upset customer

How has your company handled these situations? (n=94)

'Reply if posts are truthful and response is appropriate, hide or delete posts if possible if the posts are untruthful/ hyperbolic. Often we just ignore.

We tailored a professional response to the complaint with the help of corporate marketing and web specialists.

When someone is being unfair on our Facebook page, we delete the comment. When there is inaccurate information on other feeds, we comment to correct it.


CODED OPEN ENDS Total (n=160)

Creating content/ messages 15%

Measurement / ROI 14%Cutting through clutter 11%

Lack of staff/ time 9%Best practices / staying up-to-date 8%

Showing up near negative news 7%

Criticism / negativity towards brand 6%Less response 6%COVID impact 4%

Consistency 3%

Dealing with fake reviews 3%Budget / cost 3%

Getting company buy-in 2%Other 8%

None 8%

Please briefly respond to: What challenges or concerns do you have with marketing your company on social media today?

SOCIAL MEDIA CHALLENGES

The top three issues SMBs remarked about in the open-end this month are related to developing and sharing the right content for this environment,

proving/measuring ROI, and being seen/heard over the noise of the platform.


TODAY’S SOCIAL MEDIA CHALLENGESPosting useful and appropriate content that leads to conversions while not appearing tone deaf or fueling negativity that negatively impacts our business.

Since targeting capabilities have been taken away, we worry that we are reaching the right target markets.

Overall negative and divisive climate drives away people who will kindly interact with and support your business. You're left trying to be heard above all the noise and chaos of the platforms.

The algorithms are no longer business friendly. It is very difficult to organically show-up in a persons feed. And there is just too much online noise.

It's time consuming to constantly have to market on so many platforms (not just social media) on a daily basis even with integrated suite software.

Comments on posts have to be monitored closely as sometimes people respond to each other rather than the original post, and it can get heated.

Ensuring that our values and message stay aligned and that we don't get caught in the news of the day.

Presenting our brand without triggering any negative response..


July #

Retail Trade 37

Healthcare & Social Assistance 27

Information, Media, Adv 25

Services - Other 23

Arts, Entertainment, Recreation 20

Services - Prof. and Biz 16

Construction / Contracting 9

Orgs: Religious, Civil, Prof, etc 9

Restaurants & Food/Bvg Service 8

Other 34

Top Industries of Respondents

Location of Respondents(darker bubble indicates more responses from that area)

SURVEY TAKER PROFILE

Marketing ExpertiseJuly %

Novice 39%

Mid-Level 25%

Master 35%

# of Survey Takers n

July: 7/21-7/31/2020 210

Documents

July 2020 Social Media & COVID-19 · July returned the highest “get worse” expectations for the next six months. ... SOCIAL MEDIA PLATFORMS USE SOCIAL MEDIA ATTITUDES 60% Social