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In a slow market, the internet will be important

October 22, 2008

This is just my opinion, but as the market dries up for a lot of things in these tough financial times, I think that social media will increase.

Chances are, for most people, the internet is a thing they could no longer live without. Whether it’s the community they’ve built on Facebook or Twitter, or the blogs they love to read, the internet has become a really large part of people’s lives.

As we explore new ways to communicate using social media, and clients increasing look at this option, I can see a sort of paradoxical moment coming.

First of all, when there are down times in the market, marketing using turns to Direct Marketing. It’s the place whereby the client can show a return on investment of every dollar spent. Ie, we spent $X, sold $Y product. Even if $Y isn’t close to $X, at least the client knows exactly where the money went.

More so than with a TV spot, for example.

Enter social media. There’s a push for it for marketers. If you work in an agency, then you know that it’s being talked about at every step of the process. And i think that participation in social communities will increase as anxiety about the world increases. We’re social people, and we like to be in groups.

Meaning, there’s growth in a spot that’s both interesting to marketers, and relatively in-expensive to marketers. Except, there will be a serious tendency to ask for the order.

That’s what we do when things are tough in marketing. We ask for the order louder (or we shut up by stopping spending money).

Therein lies the interesting paradox. More marketers want into something that’s growing so they can try to sell things to people.

Gonna be fun to watch how that works.

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5 Comments leave one →
  1. October 22, 2008 10:15 pm

    Thanks Matt, I agree. As the economy continues to struggle, the Internet will continue to be a core tool in our lives. Our culture is now so integrated with web content and growing in social media that if anything, web-based community will continue to grow.

    For companies who need to tighten their marketing budgets, they can invest their time in building relationships on social media platforms. This is a long-term credibility process as it is a different type of marketing, but the payoff is definitely there in the customer loyalty department!

  2. October 23, 2008 7:17 am

    What I have noticed in the last two years is that energy prices, especially transportation, not the economic perceptions of consumers that drive internet use much higher. There is a correlation between a family buyer using the internet to find a store or search out a product, and by that, also make the purchase decision before they get to the location, then would normally be seen in the past. Often we assume the purchase decision occurs in the store, it happens much sooner now.

    This is an important fact for businesses to understand that have an underdeveloped internet marketing strategy or internet presence. It implies that as the transportation costs rise so should your internet marketing spending costs rise.

  3. October 23, 2008 9:16 am

    @Tim: that’s a really good point about marketing costs. I really think that marketers will look hard into digital now, instead of merely revamping a website.

    @David: found this article this morning from Canada’s Globe and Mail. http://tinyurl.com/589o4r

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