Over the past few weeks, I have continually been bombarded with the same question from crowdfunding campaigners worldwide: How will COVID-19 impact my Indiegogo or Kickstarter campaign?
Crowdfunding backers have been conditioned to wait months after campaigns end before they receive anything since 2007. This will continue as long as campaigners continue to deliver cool stuff at a discount before their products sell elsewhere.
Assuming COVID-19 comes and goes within the next few months, I do not expect to see too much of a negative impact on our next crowdfunding campaigns scheduled to launch this year. Backers are not expecting to receive these products until the end of 2020 and well into 2021.
Our most recent crowdfunding campaigns further support my confidence. They are all performing extremely well as you can see below:
Ads are cheap right now
Our next launches should continue to perform as well as the ones I listed above because our crowdfunding strategy relies heavily on our ability to drive more traffic and conversions through our Facebook/Instagram digital marketing system. More and more people have been forced to stay home over the past few weeks. This leads to them spending much more time on social media. This huge increase in user supply is driving down our delivery cost which allows us to capture more impressions at a much lower cost.
We have noticed that other businesses have had to reduce their advertising budgets on Facebook/Instagram. They are limited to their supply and must wait for overseas manufacturers to deliver more before they can advertise again. The decrease in competitor spending on Facebook/Instagram is reducing the delivery cost and helping us drive much better returns through our digital marketing system.
In summary, Facebook/Instagram advertising is cheap right now and the crowdfunding industry has conditioned its Backers to wait months before expecting to receive the products they order. The only major category that seems to have taken a hard hit has been travel, which comes at no surprise. Besides that, all other verticals continue to perform well for us here at LaunchBoom.
Although I continue to stay optimistic regarding our campaigns scheduled to launch this year, the current COVID-19 situation could still prove me wrong. If this virus continues to linger around longer and cause more problems before the end of 2020, things could change. We will have to wait and see.
Looking for help navigating the COVID-19 landscape with your Kickstarter or Indiegogo campaign? We’re here to help our partners in this chaotic time. Apply to work with us today!