Online Pet Marketing During and After the COVID-19 Crisis
Pet marketing in 2020: Consumer confidence may have waned, but pet owners still spend money on their dogs, cats, and other pets. COVID-19 has generated plenty of concerns about health and finances all over the world. This global pandemic may have initially begun when the virus jumped from an animal to a human host. On the plus side, the CDC says that you probably don’t have to worry about pets getting sick or contributing to spreading the disease. Instead of making people leery of keeping pets, the crisis appears to have sparked interest in them. In fact, pet ownership has even increased in the United States during these days of social isolation. Even better for pet product marketing, most sectors of the industry have proven remarkably resilient to past financial downturns. Still, pet industry trends and consumer behavior have changed abruptly during the current crisis. It’s important to understand what’s different about the COVID-19 outbreak than financial slumps of the past. That way, you can develop pet product marketing plans that will attract and retain today’s customers. How has the coronavirus impacted pet marketing? Even before coronavirus, marketers have touted pet product marketing as a typically recession-proof industry. That positive view of the overall pet business held true both during the Great Recession of the last decade and in the aftermath of 9/11 two decades ago. Still, the current pandemic has generated both some new opportunities and new challenges for the pet business. For instance, previous economic downturns did not have associated stay-at-home orders and perhaps, did not occur quite this abruptly. While many retailers and marketers still have plenty of reasons to feel optimistic, others have struggled and may need to pivot their pet marketing plans rapidly in order to maintain and grow their business. Local pet services face the most obstacles The virus has generated the most challenges for local pet services. In particular, locally owned businesses may struggle to survive. Travel restrictions and increased remote work have slashed the need for such services as pet boarding, daycare, and dog walkers. Restrictions on in-person contact have limited dog groomers, even if they’re considered essential businesses. People may delay some other discretionary services as they tighten their purse strings. On the other hand, one sort of pet service has enjoyed an upswing. According to USA Today, pet shelters and adoption centers have not reported an increase in the number of pets dropped off because owners were either financially unable or too ill to take care of them. Actually, pet shelters have reported an increase in the number of people who have signed up to foster or adopt shelter pets. Because of social distancing measures, people may have decided pets can help them cope with isolation. Others may simply have found more time to care for a furry friend. Also, many shelters and sponsoring agencies have made it possible to reduce or even eliminate adoption fees. Probably for multiple reasons, expect to see pet ownership increase and not decrease during the coronavirus outbreak. Local retailers must take safety measures and find alternative business tactics Most of the government stay-at-home orders consider pet stores an essential business. That means that they can stay open, even when non-essential businesses have had to close. At the same time, they’ve generally had to take more stringent safety measures to satisfy local regulations and of course, to keep their customers and employees safe. For instance, stores might limit foot traffic, have employees use PPE, and offer curbside service or new delivery options. Keven Fink serves as the CEO of Worldwide, a pet products manufacturer. He said that many of his company’s local retailers should have prepared themselves better by leaning into online retailing a little more. He believes they should take advantage of their community presence by offering more online ordering with local pickup. In this way, customers still won’t need to pay a shipping charge. Still, they can enjoy the convenience of contact-free payments, online ordering, and in many cases, same-day pickup. Traditionally, this model has served other types of retailers with physical stores very well. In addition to other marketing, physical stores could better position themselves by adding online pet supply marketing to their existing advertising. How to benefit from the rise of online pet supply marketing Pet industry marketers will face challenges both during and shortly after the outbreak. Compared to an original project increase of five percent for 2020, the marketing research firm Packaged Facts predicts an overall 17 percent decline for the year. Most of that decline comes to a drop in such pet services as boarding, dog walking, and pet daycare services. Travel restrictions and stay-at-home orders mean that more people won’t need this kind of help. Packaged Facts also expects a somewhat more modest decline in other discretionary services and products but an increase in sales of such non-discretionary pet products as food and litter. Along with obstacles, marketers can also find some growth opportunities. Online pet supply marketing already enjoyed steady growth before the outbreak. Mobile and online sales have been surging for all sorts of eCommerce. Pet product retailers and marketers should take this as good news because historically, online sales have tended to grow the overall market instead of cannibalizing other retail sales. Packaged Facts expects online sales to reach at least 24 percent of total industry sales in 2020 and grow to over 26 percent within five years. Choosing an online platform Larger retailers and distributors may already have their own eCommerce platform. Other pet product marketers may simply take advantage of the vast audience and developed infrastructure that Amazon already offers them. If a pet product supplier has a brick-and-mortar store, either option can offer a customer base that extends far beyond their local market. Of course, many sellers have both a presence on Amazon and their own store. Managing both Amazon listings and a business website makes an marketing a bit more complex; however, it can also offer your business many
Pet Product Marketing During the Coronavirus
Find out how the coronavirus pandemic has impacted pet product sales, and how your pet product marketing can take advantage of opportunities. In the past, marketers thought of pet product marketing as reliably recession-resistant. According to Pet Food Industry, an industry journal, that proved true both after 911 and during the Great Recession of 2008. In contrast, industry forecasters do expect to see at least a temporary drop in some pet product sales during the coronavirus crisis. Of course, pet owners still need to feed and care for Fluffy and Fido. Because of this, not all kinds of products will suffer, and the market should rebound by next year. In fact, some brands have continued to do quite well during the crisis. Take a minute to understand the state of the current market and how a pet product marketing agency or retailer can appeal to customers. Challenges to pet product marketing during the coronavirus These are some recent recent forecast for U.S. retail sales for pet product marketing and sales that Pet Food Industry published: Post-pandemic forecasts assume a 17 percent drop in U.S. retail sales of pet products for 2020 to 2021. Before the pandemic, those same forecasts predicted a five percent increase. If true, these declines will translate into about $18 billion less revenue in 2020 than in 2019. The forecasts do predict that the market will begin to recover in 2021. This rebound underscores the strength of the market for pet food and other pet products in the United States. Pet product marketing opportunities during the coronavirus crisis While forecasters expect pet product marketing to struggle during the next year, some kinds of products may not suffer as much. For example: Industry analysts believe non-medical pet services, vet services, and non-food pet supplies will have the largest drops. On the other hand, these same forecasters expect non-discretionary product sales to maintain modest growth. Non-discretionary products include such necessary items as pet food and cat litter. Even with these need-to-have items, expect to see consumers looking for value by turning more to sales and in some cases, store brands. Pet ownership may actually increase during COVID-19 Packaged Facts provides industry research for several industries, including pet products. Their research director, David Sprinkle, believes that U.S. pet ownership might even increase during this crisis. He said that happened during the Great Recession of 2007 to 2008. It’s even more likely to happen now because pets can provide comfort and companionship during these times of social isolation measures. As more people have switched to remote work, they may also feel they have more time to care for a pet. Surges expected for eCommerce pet product sales Even before the current crisis, eCommerce sales of pet products had begun to grow at a steady pace. As with other packaged goods, the online part of the market has continued to climb during the outbreak. Consumers may feel reluctant to leave their homes to shop as much and might even have trouble finding their favorite brands reliably stocked in stores. In addition, once pet owners find an eCommerce retailer who offers competitive prices, they often decide that ordering pet products online provides them with convenience and affordability. In any case, Packaged Facts expects the online share of the market to reach 24 percent in 2020 and over 26 percent by 2021. Maintaining and growing sales during the coronavirus pandemic A pet product agency can take some comfort in the potential growth in pet ownership and a strong demand for such essential pet supplies as food and cat litter. While other niches may slump somewhat, they won’t completely drop off and are expected to resume growing again by next year. Based on these insights for the current state of the industry, businesses can take some steps to position their own pet business better. For instance, good tactics might include offering competitive prices for essential pet products to attract and keep customers. Those same customers are still likely to consider some discretionary pet purchases. Maintaining or creating pet products brand loyalty At least when it comes to pet food, most owners tend to remain pretty loyal to certain brands. If their pet appears to like a certain kind of food and that food keeps them healthy, their owners will generally keep buying it. As most pet owners know, switching brands can take a period of adjustment, so that’s something most people would rather avoid. A survey from Civic Science found that even during the pandemic, just about three-quarters of pet owners had more concerns about pet food quality than price. As an interesting note to help develop buyer personas, women, people who cook a lot for themselves, and older people appear most concerned about quality. Dog owners seemed somewhat more concerned than cat owners. People who value quality the most will tend to turn to online retailers; however, people who also value patronizing locally owned businesses also tend to care a lot about quality. This also suggests that locally owned business could have a good chance to grow their business with online ordering options. To dig a little deeper, the survey also asked these pet owners some specific questions about their buying behavior: Brand vs. price: Where 40 percent said brand mattered more than price, only 14 percent said price mattered more. To be fair, almost half of the survey respondents said that they considered price and brand just about equally important. Unsurprisingly, typical consumers would rather save money but not at the expense of quality. Sources: About 55 percent of the respondents said they bought their pet food at the store. Of these, 43 percent shopped at either a grocery or discount store and 28 percent purchased from a local or chain pet store. Online sales from Amazon and other online retailers captured about 29 percent of sales. In conclusion, pet owners do tend do demonstrate brand loyalty. On the other hand, most of these consumers would prefer to find a good deal
Don’t Ignore Influencer Marketing for Your Pet Products
Don’t knock influencer marketing when building your strategy for pet products. This type of marketing amplifies word-of-mouth marketing through social media. Do you trust a random TV actor pitching a product? What about a celebrity pitch person — someone you’re familiar with? Would you trust this person more? How about a close personal friend whose opinions you respect? Does their product recommendation carry even greater weight? In most cases, the answer to these questions are all in the affirmative. There is a definite spectrum in terms of whom we trust — that’s one reason why word-of-mouth marketing has historically been so effective. People trust friends, family members and people they respect more than faceless corporations. Influencer content marketing offers many of the same benefits associated with word-of-mouth marketing, and amplifies those benefits by including the reach of social media. Let’s take a closer look at the current state of influencer marketing, how it can specifically be used to sell pet products more effectively, and the benefits of working with an influencer marketing agency. Influencer marketing: a maturing market The growth of influencer marketing has been nothing short of astonishing over the last few years. Just consider these statistics from Influencer Marketing Hub’s “The State of Influencer Marketing in 2020” report: The industry is worth nearly $10 billion, growing from $1.6 billion in 2016. Average earned media value per $1 spent has jumped to more than $5. The number of micro-influencers used by large companies has tripled in three years. 80% of respondents plan to have a dedicated influencer marketing budget in 2020. 91% of respondents believe influencer marketing is an effective tactic for growing a customer base. 2020 Influencer Trends As those statistics show, it’s on a rapid growth trajectory. Yet to get the most out of your influencer marketing campaigns, it’s essential to have your finger on the pulse of evolving trends. eMarketer’s recently published “2018 Influencer Marketing Report” cites the following trends for 2020: 48% of businesses plan on using celebrity (or “macro”) influencers, while 45% will use micro influencers. Instagram is the preferred platform for influencer marketing, with 100% of report respondents using it. 85% use Facebook, 67% reported using YouTube, Snapchat 44% and Twitter 33%. TikTok, which is seeing some of the fastest growth among social platforms, is expected to be a major player in influencer campaigns in 2020. Influencers will continue to cross-over from having niche social media followings to being full-fledged celebrities. While this will give the most prominent macro influencers more leverage with businesses seeking to work with them, it also greatly expands their potential orbit of influence. How can this be applied to pet products? The pet industry is a natural home for influencers. People are devoted to their animals and love to consume and share pet-related content over social media. It’s estimated that one-quarter of all social content is pet-related and that one-fifth of pet owners have created a social media account specifically for their animal. The #dogsofinstagram hashtag alone is closing in on 200 million posts. Social media influencer marketing agencies that are solely dedicated to working with famous animal accounts have sprung up in the last couple of years, attesting to the power of this phenomenon. Companies seeking to sell pet products, therefore, have a powerful advantage relative to businesses in other industries: An army of potential influencers waiting to be leveraged. Pet bloggers and owners of pet social media accounts number in the millions, which means that the pool of available influencer talent is vast. Given that the ability to source influencers is perennially ranked as one of the most difficult challenges for firms engaged in influencer marketing, this is a considerable advantage. There is an obvious parallel to be drawn here: Mommy bloggers. Brands, over the last ten years, profited enormously from their partnership with high-profile mommy bloggers, who were able to build vast and deeply engaged audiences across various social platforms and websites. Parent-focused social media marketing become a core strategy for countless brands, and helped generate billions in new revenue. Pet industry brands have a similar opportunity to leverage pet bloggers in the same way, given their sizable numbers and considerable reach. Pairing this approach with some of the trends we’ve cited above is a winning strategy for 2020 (we especially encourage brands to focus on integrating TikTok into their influencer marketing strategy, as that platform is poised to become perhaps only second to Instagram in terms of cultural cachet and reach). Finding the right influencer marketing agency At Bigeye, we are experts at crafting compelling influencer marketing campaigns rooted in a deep understanding of the latest trends and technologies. If your pet product campaign needs a boost, we encourage you to reach out to us today — and learn what the right influencer marketing campaign can do for your brand.
Not a Pet, But a Family Member: The Evolution of Pet Marketing
Pets have graduated to full-fledged family members. Here’s what brands need to know to ensure their pet product marketing is keeping pace. Pets aren’t really pets anymore. Today, many people are more likely to regard themselves as “parents” rather than “owners” of their animals — and they want the very best for their children. Pet product marketing needs to reflect this cultural change — and brands that fail to adapt will soon fall out of favor with pet-crazed consumers. Trending towards humanization One stroll through a pet store or a dog park will tell you everything you need to know about how the treatment of pets in society has evolved. A generation or two ago, parents would often purchase or adopt a dog or a cat “for the children” and then provide the animal with the bare minimum level of care and attention. Today’s pets are comparatively lavished with attention, and there are a few reasons for this shift. First, millennials have delayed marriage and child-rearing longer than any previous generation, largely due to economic uncertainty. Pets serve as “proxy children” or “starter children” for many people in this segment. Second, the proliferation of social media has created a situation where everyone wants to document and share their lives – and pets play a major role in this. Open up Instagram, Facebook or any other social app, and you’ll be deluged with animal photos. Pet ownership numbers have also sharply increased, rising from 56% to 68% over the last three decades. As you might expect, younger people are overrepresented in pet ownership, accounting for 62% of all pet owning households. How the pet industry – and pet ownership – are evolving Changing cultural dynamics around pet ownership are reflected in larger trends inside the pet industry. Let’s take a closer look at a few of the most important trends, and how pet product marketing is adapting. Direct to consumer pet boxes Brands have used the DTC subscription box model to great effect, as it allows consumers to feel like they are receiving a gift in the mail each month and doesn’t require driving to a brick and mortar shop. This model has been especially successful in the pet sector; brands such as Bark have experienced fast growth by shipping curated boxes of dog treats and toys direct to consumer doorsteps. Elevated pet food The days of feeding pets undifferentiated food brands of questionable quality are over. Today, pet owners are buying pet food much in the same way they purchase human products — and pet food marketing should reflect this. Witness the recent craze over grain-free dog food, which mimics in some ways the “gluten-free” craze of the last few years. TV for dogs Pet parents are understandably worried about leaving their animals alone for extended periods of time. Dog TV — a new network that creates dog-centric television programming – purports to solve this problem. When you depart for work in the morning, you can position your dog in front of the TV screen, where he can watch hours of programming calibrated to his interest and level of understanding. Dating apps for dog lovers People have famously highlighted pet photos in their Tinder profiles for years, but Dig takes this to the next level. Dig is a dating app for dog lovers that helps set up canine-friendly dates. Unlike other dating apps, women outnumber men by a significant portion on Dig, which gives the app another interesting wrinkle. Finding the right pet care marketing agency Most pet product marketing agencies produce campaigns that are all bark with no bite. Bigeye is different – we’re a team of talented creatives, tech wizards and strategic thinkers, and we all have one thing in common: We love pets, and we’re great at producing high-level pet industry market research. Come visit our website, and we’ll be sure to show you a few tricks to help you catalyze your next pet product marketing campaign.