Impact of Demonetization on PPC
Introduction
Demonetization is a process of banning certain currency notes and replacing them with new ones. In India, demonetization of Rs. 500 and Rs. 1000 currency notes was announced on November 8, 2016. This move had a significant impact on the Indian economy, including the advertising industry.
Decrease in Consumer Spending
The demonetization move led to a decrease in consumer spending, as people had limited cash in hand. This directly impacted the PPC campaigns, as advertisers saw a decrease in the number of clicks on their ads. As a result, the cost per click (CPC) increased, making it difficult for advertisers to achieve their desired ROI.
Increase in Digital Payments
Demonetization led to a surge in digital payments, as people started looking for alternative payment methods. This led to an increase in the usage of digital wallets, credit and debit cards, and other online payment methods. As a result, advertisers had to adapt their PPC campaigns to target users who were using these payment methods.
Shift in Consumer Behavior
Demonetization led to a shift in consumer behavior, as people started looking for cheaper alternatives and discounts. Advertisers had to adjust their PPC campaigns to offer discounts and deals to attract customers. This led to an increase in the number of clicks on their ads, as customers were looking for the best deals and discounts.
Conclusion
In conclusion, demonetization had a significant impact on the PPC campaigns in India. Advertisers had to adapt their campaigns to target users who were using digital payments. The decrease in consumer spending led to an increase in the CPC, making it difficult for advertisers to achieve their desired ROI. However, the shift in consumer behavior led to an increase in the number of clicks on their ads, as customers were looking for the best deals and discounts.