---
title: The Impact of COVID-19 on the Digital Market · VitaminaWeb
description: Find out how the COVID-19 pandemic has affected the digital market.
source: https://vitaminaweb.digital/en/blog/the-impact-of-covid-19-on-the-digital-market
lang: en
---

![The Impact of COVID-19 on the Digital Market](https://vitaminaweb.digital/storage/blog/IoCC8guHUYRQcANFOTXvw3dbtkLtlSOXktCrmP2r.webp)

The pandemic caused by the novel coronavirus (COVID-19), which has already led to more than 293,000 confirmed cases in Brazil and just over 18,000 deaths, has brought us a new way of living and interacting.

We were forced to adapt in very little time to a new reality, with changes to our daily habits and new ways of working, communicating, and even having fun.

In this scenario, fear and economic instability have taken hold, affecting thousands of people and businesses. A recent study conducted by [ABRADi](https://www.abradi.com.br), the Brazilian Association of Digital Agencies, under the leadership of Marcelo Sousa, current Executive Director of [Marketdata](http://marketdata.com.br/) and President of ABRADi Nacional, found that at least 80% of companies have already had at least one contract renegotiated.

The service most affected has been digital media buying. Social media and e-commerce, on the other hand, are expected to be less affected, since online sales have become an alternative for consumers and have been growing since the start of the pandemic.

With these changes in consumer behavior, the strategies companies planned before COVID-19 are no longer appropriate. This shows that many agencies have had to expand their range of services to avoid contract cancellations by clients.

Another factor highlighted in the study is payment terms. They range from 30 to 60 days, while advertisers who have also requested extensions may take up to 120 days. Companies in the hotel and aviation industries, two of the sectors hardest hit at this time, have suspended payments indefinitely.

But the most critical issue is the cancellation of projects that had already been approved before the pandemic and are now being shelved because of the current situation. Advertisers cite the need to cut costs and reallocate marketing investments.

This change in circumstances has had a significant impact on businesses. Digital, which was a communications advantage for some companies and industries, has now become essential. And many of these companies are being forced to accelerate this process and test new ideas.

But the upside of this change is that digital professionals and agencies have an even greater opportunity to analyze user and consumer behavior. They are also forced to reinvent themselves every day in search of creative solutions for clients. The more attention they pay to why people are changing and the better they are at mapping these behaviors, the better equipped they will be to meet their needs.

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