Following on from a thread about the FTSE 100 dropping a fair whack today, I thought it might be worth chatting about how this affects the marketing industry. Obviously with a reduction in budgets, peripheral services will start to be cut off for many businesses, meaning that those offering marketing services that can show a direct and measurable ROI may actually see an increase in business. Personally, I only offer SEO consultancy to a small group of clients so I haven't seen any negative impact (other than some of my investments dropping in value, but I'm more or less happy to weather the bad times on that front) - and earnings from ad revenue and affiliate sales seem unaffected for the time being. But I suspect some services will see a fair impact - particularly those agencies managing large client lists for high prices. Would you agree that if a strong brand presence results in clients paying a little more than they otherwise would for the service, might in turn find them looking for cheaper alternatives if their budgets are tight? Public relations is another area I suspect might see a hit. Not any disrespect to our PR colleagues, but I do think many small to medium sized businesses may look at PR as being optional to an extent. It's not easy to monitor results (when other forms of marketing benefit from providing direct sales) and I think a lot of business won't fully appreciate the branding and exposure benefits of PR enough to justify the expense. On the whole though I think these times do give those with a reputation (and ability) to provide a good marketing service to businesses a much stronger position. Take SEO for example - very easy for newbies to join the game and these days, "SEOs" are ten a penny. But when it comes to (credit) crunch time will their lack of experience be their downfall? Or perhaps their lower price points might a bonus. What's your thoughts on it all?
I think our economic situation will certainly test some businesses however it is also a great time for marketing. Alot of business feeling the pressure will reduce or stop spending money which leaves more room for other businesses to grow. Alot to think about and thinking outside the square is not a bad idea.