The Value of Search Marketing in a Down Economy
Early this mroning my Google rep emailed me a well thought out and developed presentation that I strongly believe is worth sharing. The PDF is full of PowerPoint-like slides discussing the tremendous long-term value of search marketing in an economic downturn, such as what we are experiencing right now.
Although Google has a strong bias towards argumenting the value of search marketing, the underlying message of this document is absolutely accurate and worthwhile. When times get tough, marketing studies consistently confirm that while ROI suffers, those advertisers who pull out of or scale down their marketing efforts have lost market share by the time the economy rebounds. Any seasoned marketer or advertiser knows that the battle of market share is significantly won and lost during economic downturns, not in flourishing economies.
This is a true business principle for the ages, not nervous talk. Check out these essential points:
“‘Brand that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at a lower cost during good economics times. . .’” says Professor John Quelch, Harvard Business School.
“‘We see more people turning to online because it’s much more efficient in terms of time and money’” according to Michael Boylson, CMO, J.C. Penney.
“25% of senior marketers would increase online spending in a recession, while only 13% would cut it.”
“Analyst say search marketing will be the fastest-growing segment for 2008.”
“50% of searchers are ‘Brand Advocates.’”
Could new consumer trends emerge amidst a recession? Hmmm, I wonder . . .