What’s happening with the economy? Every day there is another news story about someone loosing their house because the economy is … dare I say it … in a RECESSION. Well how is this downturn going to affect the advertising industry? Companies still need to advertise, right? Of course, it’s more important in a "down" economy for companies to fight harder for their share of the dwindling consumer dollar.
So, what is a company to do with it’s marketing budget?
SHIFT IT TO ONLINE
Why, you ask? Because it is measurable, trackable, and it is not hard to generate the metrics to determine if a campaign is successful.
eMarketer has an interesting article, today, on a study conducted in February by Penton Research for PROMO Magazine that talks directly to this point. It is reporting that 43% of marketers surveyed are planning to increase their online marketing budgets in 2008.
Well, it’s finally happened… AdAge is reporting that the "down" economy is driving advertising dollars online. Why is that, you ask; because the online investment can actually SHOW a return. Remember, in the past, Direct Marketing got the ad dollars in "down" economies… Well, now, digital/online marketing can do a better job of showing a return… So, where are the $$ going? Online! Social networks, PPC, etc…, ignore the online branding, but, watch what happens to online spending…
MediaPost is providing more stats and information that E-mail marketing and other digital marketing platforms are gaining more share of ad dollars every day:
E-mail pitches and Web ads help power financial marketing
The use of e-mail and Web ads in direct marketing by U.S. financial services companies is projected to grow by 22.5% and 17.8%, respectively, between 2007 and 2012, according to a report from the Direct Marketing Association. The two segments are expected to help fuel an increase in the sector’s revenue from direct marketing from $178.8 billion in 2007 to $286.2 billion in 2012, the report found. MediaPost Communications (4/3)
This article contains some pretty good breakdowns of the financial services marketplace and provides a link to a deeper dive into the information and data.
At what point is it no longer "alternative?" Mediaweek has a story out, today, by Mike Shields, reporting on a study by PQ Media which states the following:
"Ad spending on alternative media, including user-generated Web content, Internet search, mobile, gaming and branded entertainment, this year is on pace to jump 20.2% to $88.2 billion, even if there is a recession, according to a PQ Media report. The segment by 2012 is projected to reach $160.82 billion and comprise 26.6% of total U.S. ad spending."
PQ Media is calling, "alternative media" that media, "which encompasses everything from digital to mobile to emerging segments like gaming and branded entertainment." They are projecting that in four years time "alternative" media will account for more than 25% of media spending.
That’s VERY conservative, in my view. Having been on both sides of the "wall," that number is going to grow in a much more exponential fashion, in my opinion. I’d say that in four years "alternative" media will account for between 35-50% of media spending… unless the term is redefined.
Here is a great article from Businessweek.com from February 8th on how to get the best work from your ad agency. This is something that makes great relationships between agencies and clients work. If you don’t have this kind of relationship with your agency (or client) then you should look into working together to make things better. It’s always in the best interests of the agency to make their client’s business a resounding success.
Their key points were:
See the full article at Businessweek.com.