A New Economy, A New Consumer
Every recession in recent American history has consistently shown ad budgets decline. We’re already seeing evidence of this in the current economic downturn. However, history also shows us that when the economy goes south, those who maintain their budgets or even increase them have far greater results compared to spending levels when the economy is doing well. The lesson here is, when competitors are decreasing ad budgets, pounce.
In the last advertising slowdown, companies like Netflix, Expedia, and Zappos managed to grow over $100 million in revenue by taking advantage of cheap media. The current recession, however, is not only going to lower the cost of media, it will also lower consumer confidence. People will be saving more and buying less so companies will have to step up their game to stay competitive. Many companies have turned solely to online campaigns like Search Engine Optimization, Social Media Optimization and viral campaigns, seeing much better results at a fraction of the cost. Because people are saving money by getting rid of cable, driving less, and spending more time online, people aren’t seeing TV spots, billboards, and print ads like they used to. Today, everyone is online for everything, which is why this recession is the perfect time for traditional companies to try nontraditional advertising.
Tags: advertising, economy, marketing, online, recession, viral
This entry was posted on Friday, December 19th, 2008 at 3:03 pm and is filed under Consumer Insight. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
November 30th, 2009 at 5:28 am
I have to say I concur with the majority of what is being said here. I am gonna have to have to snatch the feed so I can keep tabs. on what is going on around here.