Online marketing is among the few services likely to benefit from a recession. Companies can take advantage of search engine marketing campaigns and Internet advertising designed to boost brand recognition and sales for a fraction of the price of traditional print media placements.
With a recession in full effect, marketing budgets are steadily receding. Yet
one niche of the marketing industry is still posting double-digit growth: search
engine marketing (SEM). SEM grew 21.4 percent in 2008 and is expected to grow
an additional 14.9 percent in the coming year--not bad in the worst economy since
the Great Depression.
Beating the Odds
The recession may just be the catalyst SEM needs to grab advertising market
share. Currently, Internet
advertising represents only 7.5 percent of marketing
expenditure--yet the Internet accounts for about a fifth of media consumption.
In other words, search engine marketing represents untapped potential for
companies in search of new and affordable strategies for reaching their markets.
SEMs Recession-Era Value
Companies looking to trim fat from their marketing budget are increasingly
diverting funds from print campaigns to online
marketing. Internet advertising
and search engine marketing offer several key advantages for budget-conscious
businesses. Online campaigns are:
Measurable. Online
marketing efforts measure success in terms of clicks, site
visits, and sales. Search engine marketing is especially accountable, allowing
businesses to determine the return on their investment in precise dollar
amounts. Such a direct correlation between ad expenditure and sales makes
it easy to
justify an Internet
marketing budget, even in the worst of economic times.
Trevor Kaufman, head of interactive marketing agency Schematic, explains
that during an economic downturn, clients see Internet
ads as being easier to justify
to shareholders because they are easier to measure.
Informative. Search engine
marketing enables companies to present prospective customers with a wealth
of product information. Website editorial and advertising
content qualifies site visitors, bringing them closer to the sale. By contrast,
the viewer of a thirty-second television or radio spot has neither the
information nor the means to complete a purchase.
Interactive. The interactive
nature of search engine marketing also contributes to the direct, deep
engagement necessary to convert a prospect into a sale.
At the same time, interactive media fosters brand engagement and loyalty.
Essential. The Superbowl ad can go, but no company is going to take down
the company website during a recession. Gaining visibility for that website
through
SEM is more likely to figure into the budget as essential overhead rather
than discretionary expense.
Affordable. Last but definitely not least, online
marketing is affordable.
Returns on investment in search engine marketing are greater than those
for print media ads, explains economic consultant Lauren Capp. Equity
analysts Piper Jaffray credit the bottom line with keeping online advertising
afloat,
stating that the high ROI of online advertising makes it resilient
even during
a recession.
Online marketing is frequently touted as the future of advertising. With the
recession well underway, the Internet is emerging as the advertising medium
of the present. If ever there were a time to invest in a service capable of
achieving measurable results for less money, its now.
