Impact of the Recession on the Internet Economy

I am getting hammered by everyone (employees,advertising dollar pool may soften a bit, but online has
clients, investors, mom) on what I believe the impactsuch a small portion of it that we can only expect to
our current recession (including peoples’see more money. I don’t think the question is
paychecks and efforts for raises) will have on ourwhether or not online continues to grow (again phone
market. I get asked not only for the effects ininternet sharers, this is beyond your reach) as much
general or in internet marketing, but an overall effectas it is at what rate it is growing. Furthermore, the
on the online economy. It is hard enough to have torecession may actually accelerate the industry’s
admit to the recession, let alone get bombarded byoverall share of marketing dollars.
people about it.But Ay, there’s the rub; one area that the
*Disclaimer: I am known to be a fatalistic optimist, sointernet could see problems, is with investment dollars
please take my words how you wish.being thrown at us (we aren’t strippers here).
In the long run, the recession should have an overallAside from Google and a couple of other real
positive impact for many, because more people willsuccesses, the internet has not exactly been the
be throwing more dollars online. Of the yearly $240safest play for investors. Sure, there have been
billion currently being spent on advertising, only 7% issome huge IPO’s for investors in the past, but
online. In contrast to this, people spend 17% of theirmost of those companies that paid huge dollars to
advertising consumption online. The most importantinvestors were very artificial (and most have closed
advantage of marketing online versus offline is thetheir doors). If you are one of those companies that
ability to enter into short term relationships and seerelies on investment to sustain growth, you had
enough data to move and adjust a campaign,better have one hell of a plan B, as the private
without having to pay for lunch (and you can skip theequity market is inevitably going to dry up.
dinner invite) . To market offline, you typically haveYou all asked for it, and I believe that the internet will
to plan months in advance and commit to a campaignhave a similar effect for online commerce as it does
(TV/PRINT/RADIO) for multi-month or even yearoffline. I am partners in many online commerce stores
terms. Your data will come in every couple ofand we can already see a bit of a negative effect in
months, and other than seeing spikes in sales, it ishigher-end “luxury” items. Commerce will
hard measure what is and is not working. Thissoften in general and will certainly appear online. We
doesn’t seem to fly in the technologicallycould get a nice new breed of people looking for
advanced world we live in now. And if you are stillbetter deals, and everyone knows (now) that the
sharing your internet connection with your phone line-internet is by far the most efficient place to do that.
why are you reading this? When you spend yourThose are my thoughts…buckle down, save
money online, you can see exactly what each dollar ismoney, and most importantly, make a very strict
doing and if you see problems in your campaign, youplan to be able to turn your company profitable by
can change and adjust it whenever you want. Youthe end of the year.
can also enter into short term contracts (sometimesFor more resources about Internet Marketing
as little as a month at a time) to experiment.Consultant or about Internet Marketing Consultant
Because of the obvious efficiencies in onlineSan Diego or even about Internet Marketing
advertising as compared to offline, I believe more ofConsultant Southern California please review these
the dollars being spent will move online. The overallweb pages.