OK so things are looking pretty scary out there, and as people tighten their belts and put their heads down, pretty much all sectors are going to take a hit. That includes advertising – even on-line advertising. When I look at our client list I can’t see too many who aren’t going to be effected by the credit-crunch, and that in turn is going to effect us, their agency. I am sure most agencies are in the same boat. Customers are still going to be on-line, maybe just not spending any more or definitely not as much. But companies still have to cast their net!
So, this could be a golden age for digital. With the targeting and measurability benefits it offers on-line advertising could see a boom where others are experiencing cut backs. We could also see some great some great innovation as digital advertisers squeeze as much value out of their advertising dollar as possible. Companies are going to be monitoring their diminished advertising budgets vigilantly and the ROI data that on-line advertising offers could allow it to actually mature into seriously dependable and functional media channel. As digital advertising professionals it’s up to us to facilitate this development by stepping up to the mark and over delivering.
The flip side of this is that this is not the time to be taking risks. The “yeah let’s give it a crack” mentality some companies might have needed to make the foray into using on-line advertising channels possible is more than likely to be put on hold. The recent boom area of ad-supported social networks can’t help but be hit by this. I also have to say I am a bit worried about the number of Google Ads being run really skyrocketing, with the quality of these ads being appalling as more and more people try to take them on in an attempt to get a cheap foothold in the on-line advertising space.
The best way for anyone to survive in this market downturn is by repeatedly and constantly delivering a quality product and outstanding customer service, and that goes for everyone.
This goes double for online advertising. Get proactive. Now is a good time to put together a “relief plan” for your clients on how they might be able to trade their way through the recession with the aid of on-line advertising. I don’t mean just flick them a new media schedule either. I mean go to them with some new revitalised brand messages, and suggest how they might be able to position themselves to succeed (or survive in this case). This might involve recommending pulling back in some market sectors and consolidating in more major ones. It might mean recycling old banner ads, finding some reciprocal banner swaps or introducing some new PPC ads targeting the long tail. Look at why your clients were even advertising in the first place. If, for example, they usually advertise to promote a new product, then how can they still release a new product and not advertise it. Don’t let them cut their budget as a knee jerk reaction to diminished revenue – they still need to maintain a relationship with their clients.
Things are going to improve in the marketplace so we need to hang in there. As far as this market downturn goes for our clients – I think established brands should be able to batten down the hatches and trade through it as long as they adjust their advertising rationale to the current market. And new companies – well, like a friend of mine said to me recently, a recession is a good time to learn how to run your company lean and mean. If you survive, then when the market recovers and you have that new set of miserly and innovative business skills… let the bubbles flow!
