Digital marketing embraces today’s vulnerable economy
Posted by Manuela Barreto @ October 14th, 2008 in Marketing Analysis
It is very clear the world is traversing a brutal economic downfall which has led to some of the biggest bank failures in history. Global corporations are slashing spending significantly across all departments and releasing personnel in response to the deteriorating economic conditions.
Presumably, when we hear the word recession, we immediately think, ‘it’s time to cut down that marketing budget.’ Ad spend is the first to go and I guess it could make sense. However, numbers today are proving this ‘theory’ wrong.
However, statistics provided by ZenithOptimedia have showed that advertising spending is predicted to grow 4.9% worldwide for 2009.
Also, according to IAB and PricewaterhouseCoopers, Internet advertising is continuing to drive spending ahead of other sectors in nearly every region. Internet advertising revenues for the first six months of 2008 were $11.5 billion, setting a new half-year record that represents a 15.2% increase over the first half of 2007. Search and display advertising also reached all-time highs. Search revenues reached approx. $5.1 billion during the first six months of 2008, up 24% compared to $4.1 billion for the same period in 2007.
Other important figures presented by ZenithOptimedia reveal that Internet advertising is expected to grow by an average of 23% per year between 2007 and 2010, and to increase its share of the world ad market from 8.6% in 2007 to 13.8% in 2010, up from 13.6% in the June forecast.
Evidently, the strongest growth remains in the internet digital arena. And my advise to all businesses, brands, marketers out there would be to stand fast during this recession.
The key is to keep yourself visible. If advertising spend is cut down entirely, how will your consumers find you?
Online ad strategies are crucial now, cutting costs will not be a solution, however, allocating your budget and investing will be. Use customer knowledge to your advantage, appeal to them and never forget that suspects, prospects, customers and advocates are all vital for successful online advertising.
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Comments
The Lovable Rogue
October 14th, 2008
Manuela, I completely agree. It is imperative that visibility is maintained during the recession. As soon as the economy stabilises somewhat, it is those firms that have remained focused that will be in the best positions. In my opinion, the social media represents one of the most viable marketing options during a period of economic difficulty, most notably because social media can effectively be free to those organisations that adequately empower their work force. Secondly, it seems clear that periods of economic slowdown will cause consumers to spend far more time indoors, instead of pursuing expensive leisure activites outside of their homes. Increasing consumer hours spent on the internet should justify any expense associated with advertising online.
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m.barreto
October 15th, 2008
Hi Chris,
thanks again!
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