While The Wall Street Journal speculates that the economy might be hurting Google, others are already pointing to across-the-board cuts in advertising and public relations. Even some advertising messages have changed, skewing toward sales and savings, as an admission that times are tough.
“Advertising and the economy seem to go hand in hand,” Bob Liodice, president of the Association of National Advertisers, told Reuters. “Really, the fact that the economy is weakening is going to have an impact on the industry in the short term.”
There is some truth to that. Companies frequently find that advertising budgets are the first to be cut amidst worries of an economic downturn. The reason, which was also attributed to the 9.3 percent drop in Google ad clicks, is because people are more likely to window shop and less likely to buy.
But does that really mean companies need to cut corners on communication? It depends on the company, but not always if one recalls the wisdom of Bruce Barton, co-founder of BDO, which later merged with Batten Co. to become BBDO.
“In good times, people want to advertise; in bad times, they have to,” he said.
This might be especially true when some economic reports remain mixed. But even if the reports weren’t mixed, cutting communication budgets isn’t always the most prudent choice.
Hundreds of companies and products have been successfully launched during recessions, most notably Trader Joe’s, MTV, and the iPod. (Copywrite, Ink. is also a recession-born company, 1991.)
In almost every case, these companies increased their presence in the marketplace while everyone else cut back. Doing so increases market share, especially against larger competitors, strengthening the company’s position when the economy turns around. They also did not resort to distress advertising, sweeping discounts, or “I feel your pain” advertising, recognizing short-term messages sometimes erode long-term brands.
Of course, that is not to say that most communication and advertising plans don’t need some refinement (most do, whether there is a recession or not). And I don’t necessarily think such refinement means jumping on the rally cry of social media. Social media is better used as an augmentation tool rather than a replacement tool as some suggest.
Keep that in mind when reading those who suggest social media is the most viable solution during a downturn, a concept that seems to be largely based on the logic of Forrester Research a few months ago.
Silicon Ally Insider Henry Blodget provides a better balance. Social media remains mixed because it requires more nurturing than traditional communication.
As I mentioned in March, there are two kinds of people who have a higher propensity to get into car accidents: those who never think they will and those who always think they will. The idea is to hit the middle.
“Advertising and the economy seem to go hand in hand,” Bob Liodice, president of the Association of National Advertisers, told Reuters. “Really, the fact that the economy is weakening is going to have an impact on the industry in the short term.”
There is some truth to that. Companies frequently find that advertising budgets are the first to be cut amidst worries of an economic downturn. The reason, which was also attributed to the 9.3 percent drop in Google ad clicks, is because people are more likely to window shop and less likely to buy.
But does that really mean companies need to cut corners on communication? It depends on the company, but not always if one recalls the wisdom of Bruce Barton, co-founder of BDO, which later merged with Batten Co. to become BBDO.
“In good times, people want to advertise; in bad times, they have to,” he said.
This might be especially true when some economic reports remain mixed. But even if the reports weren’t mixed, cutting communication budgets isn’t always the most prudent choice.
Hundreds of companies and products have been successfully launched during recessions, most notably Trader Joe’s, MTV, and the iPod. (Copywrite, Ink. is also a recession-born company, 1991.)
In almost every case, these companies increased their presence in the marketplace while everyone else cut back. Doing so increases market share, especially against larger competitors, strengthening the company’s position when the economy turns around. They also did not resort to distress advertising, sweeping discounts, or “I feel your pain” advertising, recognizing short-term messages sometimes erode long-term brands.
Of course, that is not to say that most communication and advertising plans don’t need some refinement (most do, whether there is a recession or not). And I don’t necessarily think such refinement means jumping on the rally cry of social media. Social media is better used as an augmentation tool rather than a replacement tool as some suggest.
Keep that in mind when reading those who suggest social media is the most viable solution during a downturn, a concept that seems to be largely based on the logic of Forrester Research a few months ago.
Silicon Ally Insider Henry Blodget provides a better balance. Social media remains mixed because it requires more nurturing than traditional communication.
As I mentioned in March, there are two kinds of people who have a higher propensity to get into car accidents: those who never think they will and those who always think they will. The idea is to hit the middle.