Google is Cutting 50% of Their Marketing Budget: Why?

Posted on the 27 April 2020 by Gaurav Kumar @vhowtodo

An email from Google has stated that the brand is going to cut 50% of their marketing budget. This will happen for the second half of 2020.

We know that COVID-19 has severely affected the businesses, and Google is also in the line of fire.

By reducing the marketing budget company wants to decrease the burden of reduced advertising earning.

Tomorrow Google will discuss the financial results of the First quarter of 2020.

Cuts are everywhere: Why?

Due to COVID-19, hiring freezes and cuts are everywhere. Every business, brand, and even the SMB is facing difficulties.

According to CNBC, Google will cut the marketing budget up to 50% across Google products.

The email clearly shows that there will be budget cuts, and hiring will freeze across Google business.

Google CEO Sundar Pichai has also confirmed that the company is re-evaluating the marketing budget and efforts.

Bloomberg has shown a memo that Pichai sent last week. Where he said that they would follow the lesson the business has learnt during 2008. Google is preparing early to stand against all the odds and for long term growth.

The memo also shows that Pichai is talking about re-evaluating the speed of Google advertisements in 2020. The brand will focus on hyper-targeting and slow down the hiring.

Note: Pichai also said that Google would not make any cut where the businesses and users need its support for success and growth.

This is a relief for companies and customers who always need support from Google.

A search marketer has tweeted from his searchmartin twitter handle that COVID-19 has caused the collapse in travel business and advertisements. This is the big reason for the drop in Google's earning.

When nearly 10% of your business is as a performance marketing supplier to Expedia and Priceline, and they stop advertising, the knock on effects are strong: https://t.co/TKNFl3YgOs

- searchmartin (@searchmartin) April 23, 2020


Google shares are reported to be down by 2% in after-hours trading:

- CNBC (@CNBC) April 23, 2020

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