iBlogMarketing

Part 1:  The Current Reality

At this point, almost everyone is being affected by the worst recession since the great depression.  Both small and large businesses alike are scrambling to cut losses and find a way back to profitability.

There is wide agreement that advertising is the lifeblood of business.  Yet, advertising itself is going through a major metamorphosis.  Let’s just look at two key factors:
•    Total advertising spend
•    Shifts in advertising spend to other media, such as the Internet & mobile devices

First, let’s consider total advertising spend.
Forecasted total advertizing spend for 2009, according to the 2008 Starcom MediaVest Group’s Annual Media Futures Report, is predicted to decrease a record 2.4 percent.  This is the largest year-over-year decrease ever predicted.  In my opinion, this forecast may even be optimistic.  For example, Morgan Stanley Research recently published its analysis of U.S. Ad Spend versus the Gross Domestic Product (GDP).  From its data, if the GDP year-over-year growth is flat (2009/2008) the ad spend could decline 4%.  Couple this with the U.S. Federal Reserve’s forecast that the economy won’t see even a moderate recovery until 2010 and a gloomy picture emerges.

Second, let’s consider shifts in advertising spend to other media.
Almost every forecast is predicting advertising expenditures to decrease in traditional media, including print, radio, and television, and migrate to the Internet.  In fact, almost six out of ten national advertisers polled indicated they intended to increase their Internet budget in 2009.  For example, according to Advertising Age, February 21, 2009, GM’s 117-page plan included a statement that the company “will continue to lead the industry in digital and search–marketing capability.”  They also quoted a GM spokeswoman’s elaboration, “You’ll continue to see more digital and social media activation as integral parts of our advertising and marketing efforts, because it’s cost-effective, efficient and allows for deeper customer engagement on their terms.”  GM is not alone in their drive to the Internet.  In the same article, Ad Age quoted a Chrysler spokeswoman, “We are focused on our Interactive lead strategy.  We increased our leads from 270,000 in 2007 to 605,000 in 2008 … We made it easier for customers to submit a request for information on our own Chrysler, Jeep or Dodge site…”

The current reality is that Internet marketing, advertising, and public relations is out performing their traditional counterparts.  However, there are numerous Internet marketing, advertising, and public relations campaign methodologies.  This begs a key question:  What is the right Internet Marketing Plan for my business?

I will address this question in my next post:  Part 2:  The Internet Marketing Plan, which will post on April 6, 2009.