How is Coronavirus (COVID-19) impacting Crowdfunding Campaigns on Indiegogo & Kickstarter?
Over the past few weeks, I continue to get bombarded with the same question from crowdfunding campaigners worldwide:
How will COVID-19 impact my Indiegogo or Kickstarter campaign?
Since 2007, Backers on Indiegogo and Kickstarter have been conditioned to waiting months after crowdfunding campaigns end before they expect to receive anything from the campaigns they back. This will continue on as long as Campaigners continue to deliver cool stuff, at a discount, before their products sell anywhere else.
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 as backers are not expecting to receive these products until the end of 2020 and well into 2021.
My confidence is further supported by our most recent crowdfunding campaigns that are all performing extremely well as you can see below:
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. Over the past few weeks, we have discovered that while more and more people are forced to stay home, they are 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 are also noticing that other businesses are being forced to reduce their advertising budgets on Facebook/Instagram because they are limited with current inventory supply and must wait for their overseas manufacturers to deliver more product before they can begin advertising 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 on Facebook/Instagram that seems to have taken a hard hit has been the travel category, 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 next crowdfunding campaigns scheduled to launch this year, the current COVID-19 situation could still prove me wrong should this virus continue to linger around longer and cause more problems before the end of 2020.
