As we approach the half-way point of 2009, it is fairly clear to see the differences of this recession compared to the one in the early 90s. One of the main differences is the money that businesses are spending on advertising, with particular reference to the mediums through which the advertising takes place.
Online advertising looks set to power through this recession as the main medium of advertising as others take huge tumbles. For example, television advertising has dropped by around 15% in the last 6 months, newspaper ads by 17% and radio by around 13%.
So while all these other mediums are seriously suffering in terms of advertising, the World Wide Web appears to be holding strong despite businesses losing money and clamping down on their spending.
So it appears that the brunt of the drop was on the traditional advertising mediums, so why isnt Internet advertising grouped in with the same decline? Well, one answer is that it is highly preferable to pay per lead like you would with most online methods, rather than the other payment methods.
When you start an online advertising campaign, the chances are that you will start out with the market-leader, Google. As most people already know their advertising methods work on a pay-per-click basis and although not all online advertising campaigns work in this way, most of them do.
The most rational theory behind the steady growth of online ads is that people would much rather pay out small sums for each lead they get to their site than pay out large sums with the risk of not returning on it.
The last recession saw a completely different chain of events regarding online advertising. It fell more than any of the other mediums and the most widely believed reason for this is that during a recession, business directors would have been much more prepared to spend money on advertising methods that were familiar to them, rather than begin new campaigns that as far as they knew were not guaranteed to succeed.
Now, nearly 20 years on we are in recession again only now the Internet is far more recognisable as a medium for advertising. If theres one thing that we can take from the last recession its that it will be the businesses who devote time, effort and money into an effective advertising campaign that will end up as the market leaders, regardless of your niche, and those that hold back on advertising and marketing will be the ones that suffer the full wrath of the recession.
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