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Searching through a recession
Wednesday 7th, July - With fears of the impending recession rife amongst businesses, talks of budget cuts and conserving resources are on boardroom agendas. But where does search marketing fit in, and how can marketers be prepared for the worst-case scenario?

It is possible to survive, and even flourish during a recession. Many believe that larger companies in particular will increase their online marketing and reduce their offline marketing spend. A recession often sees more spending from larger companies and less from smaller companies, which in turn creates opportunity: It has been well documented over the years that increasing advertising spend during an economic downturn, as competitors tighten budgets, can improve market share and return on investment at a lower cost than when the economy is more affluent.

In the last recession, direct marketing spend increased, as it was the most trackable form of marketing. Today search engine marketing (SEM) is even more trackable, so it would not be surprising to see a dramatic increase in SEM spending.

How do you make the case to your others in your company that you should retain your search marketing budget? Here are a few talking points:

  • Marketing efforts must be measurable. With pay-per-click (PPC) ad every pound is accounted for so ROI can be proven.
  • PPC has the ability to be both direct marketing and a brand vehicle.
  • In a recession, people want to invest where they generate revenue. Building your brand is important, but in an economic crisis it`s more about money and looking out for new opportunities.
  • Improving conversions becomes paramount, as there is less money to burn. Stress that you will be getting the most out of every click. When budgets are tight, you get fewer leads, so optimising the leads you do get is crucial.
  • Online retailing is still rapidly growing, while offline is stagnant. This is possibly due to convenience, better user experiences and even the cost of fuel. Whatever the reason, this is a sign of strength, and marketers should not be cutting back spending in this area.
  • Stress market share. In areas where growth prospects are strong, companies are in a battle for market share and, sometimes even survival.

Public Relations Contact
Ivan Izikowitz
Clicks2Customers
+44 207.843.6780