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Most companies operating virtually strongly affected by COVID-19 crisis

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Most companies that are conducting their economic activity in the virtual environment were powerfully affected by the crisis generated by the COVID-19 pandemic, shows a study conducted in the April 1-20, 2020 period, on a sample of 592 companies.

Thus, 28.6 pct stated that they had a decrease in income between 20 and 40 pct, and almost as high a percentage (26.3 pct) noted drops in income between 60 pct and 100 pct, reveals the study made by online marketing and SEO agency TargetWeb.

On the other hand, 26.4 pct of the responders stated that they had increases in this period, between 20 pct and 40 pct.

Moreover, 18.4 pct of the companies participating in the study stated that they used the certificate for emergency situations to delay payments for utilities and rent. Still, most responders stated that they didn't use this measure (48.3 pct), and for 33.3 pct of the companies this measure did not apply.

According to the study, most companies (48.3 pct) stated that all employees work from home, followed by 34.5 pct - none, 6.9 pct - less than half of employees, 5.7 pct - half of the employees, 4.6 - more than half of employees.

With all that, most companies (44.8 pct) did not take into account layoffs for the coming period, 35.6 pct will make a decision depending on how the crisis will develop, 10.3 pct will surely make layoffs, and 9.2 pct do not know what decision they will make.

The TargetWeb study shows that in the coming period companies in the Romanian online environment will invest more money in Google Ads (28.7 pct), in ads on Facebook and in SEO (27.6 pct each), in e-mail marketing (19.5 pct), in PR and branding (13.8 pct). More than half of the responders (50.6 pct) have stated that they will not give up the methods of promotion that they used up to now. At the same time, 28.7 pct of responders stated that the ads paid on Google and Facebook are less efficient in this crisis period. Moreover, 50 pct of responders stated that traffic on their website has dropped.

Regarding the payment of taxes to the state up to March 25, most responders (58.7 pct) paid their dues, 18.4 pct did not pay but will certainly pay, and 11.5 pct did not pay because they expect some facilities from the state for the crisis period. At the opposite side of the spectrum, only 5.7 pct of companies stated that they did not pay but do not intend of paying their dues.

According to the study, most companies (93.1 pct) sell products and services in Romania, but also in Europe (11.5 pct), Hungary (9.2 pct), Bulgaria (4.6 pct), or the United States of America (4.6 pct), and in the crisis period 33.3 pct of companies stated that they have issues with supply.

The companies participating in the study come from the following domains of activity: e-commerce (33.3 pct), online marketing (22.8 pct), tourism, real estate, hotels, restaurants, cafes, agriculture, employment, software, consultancy, transport, web services, etc.

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