In Tough Economic Times, Budgets Shift to Interactive
Posted October 10th, 2008 by Brian Cavoli
It happens every time, when economic times get tough companies look to cut marketing budgets first. A study of CMOs conducted this summer by Epsilon found that this recession will be no exception, but with one interesting exception. Budgets for digital media are expected to increase.
In an environment of intense budget pressure, marketers need to invest in the channels that are the most accountable and have proven to generate the greatest results. But this doesn’t mean plastering the web with banner ads - old methods of shout advertising are still going to generate old results. Digital media has become more effective because it is more personal. Consumers and B2B purchasers will spend more time researching purchase decisions and the internet offers them all the content they could ever want plus opportunity to get advice from others who are already customers. A company’s ability to understand and participate in these conversations to help their customers become their advocates are the ones that will thrive in a recession period.
Here is the quote from the study:
“Senior marketing executives anticipate further cuts but are confident that they will be able to manage their budgets by focusing spending where it will have the greatest impact. For most, that means a change in marketing channels. As the overall marketing pool diminishes, the budget for interactive and digital marketing is dramatically increasing, while that for traditional marketing continues to shrink”
