2009 created a lot of tough financial situations for businesses all across the United States. Many of them, as a result, have decreased the size of their marketing budgets drastically. In fact, in 2008, businesses in the US had spent $77 billion. In 2009 however, businesses only spent $67 billion dollars. This information was discovered through a study conducted by the Yankee Group.
The most major change that businesses made, which was the most noticeable decline in advertising budgets was the lowering of the money they spent on advertising on television. It fell from $52 billion in 2008 to $41 billion in 2009. This corresponded to consumers reducing their amount of exposure to media from 14 hours a day in 2008 to 12 hours a day in 2009. This list of medias include being online, watching TV and videos, listening to music and the radio, being on a cell phone or land-line phone, gaming or reading. The lower amount of time consumers partake in these activities, the less exposed they are to advertisements.
Businesses in 2010 are expected to start increasing their marketing budgets, little by little, focusing more money on marketing techniques that are more cost effective like online marketing. They are going to want to put more of their marketing resources into advertising tactics that not only receive results, but marketing efforts they can also track the success of, like sponsored ads on search engines and other online advertising methods. Our Internet marketing firm knows online advertising tactics, like search engine optimization, deliver pre-qualified potential prospects, which allows businesses to be conservative with their marketing funds. Instead of being dispersed upon the general public and catching a small amount of people who are actually interested in a specific product or service, these types of campaigns target marketing power towards consumers who are actively searching for specific products or services.
No Matter What Happens, Don’t Cut Down
At our Internet marketing firm, we know the worst mistake a business can make is if there starts to be a dip in your sales reports, the first move you make is to decrease your marketing budget. If you are decreasing your business’ exposure, how do you expect to attract new business? Smart businesses aren’t cutting down their marketing budgets as a result of the recession, they are being smarter with their budgets, eliminating wasteful tactics and encouraging cost effective ones, like online marketing.