8 October 2008
Marketing and advertising spend is often the first thing to be cut in times of economic downturn. And businesses who haven’t decreased traditional advertising budgets in a bid to save costs are positioning themselves to speak directly to those affected. Look at Tesco’s new television campaign – their brand of low-cost foodstuff caters directly for those feeling the pinch.
But even whilst the advertising sector as a whole shows a decline of 0.7%, online adspend has increased by 21% in the last year.
So why has online advertising increased this much despite the credit crunch?
It stems from the fact that the medium offers a relatively low-cost approach to brand building. And it works. At UKFast we operated an “online only” advertising policy for many years. Here’s why:
1. You only pay for the people who see your ad. If you pay for 100 click-throughs or that number of leads, that’s what you get. Businesses like this quantifiable approach because it guarantees a healthy ROI.
2. Targeting the right audience online is much more easily done than in other mediums such as broadcast or print because online communities are much more specific.
3. Businesses are recognising the ease in which they can extend the transaction within online advertising. Traditionally, apart from placing freephone numbers on TV and coupons in print publications, there was no way for customers to act on adverts. On the internet though, interested customers can click and buy on the spot.
4. With online platforms free advertising is much more plausible – strategic press releases need only cost for production as they can be posted in many areas free of charge.
It’s not all spam. The internet is a valid and cost-effective platform on which to advertise and grow your business – even within the credit crunch.
If you’ve had any experience of online advertising growing your brand and delivering great results please leave a comment. I’m very interested in hearing your stories.