Recent news headlines have been full of talk that our country is in a recession or very close to one. Consumer spending is down, layoffs are up and companies have put hiring on the back burner until our country finds it’s way out.
Historically, when the economy turns south, businesses tighten up their spending and marketing efforts are the first to be cut back.
Marketing Sherpa released the first half of a special report on marketing during an economic downturn that reveals key insights for business to business marketers.
A MarketingSherpa survey found that 60% of large companies reported a budget cut or plan to make marketing budget cuts this year. Marketers have been moving their spending from traditional tactics to online marketing tactics.
Online spending gets a boost
Of survey respondents, 38% are increasing online investment while 36% are decreasing investment on traditional tactics.
“Marketers could be investing more online because it’s less expensive and easier to measure ROI than it is for traditional tactics.”
Online events will experience higher attendance levels than in-person events during a downturn, according to the report. Attending an online event costs next to nothing when compared to the transportation, hotel and food costs that go along with in-person events.
More than half of survey respondents are investing more in email marketing to house lists.
Forty-seven percent of marketers are increasing spend on Web 2.0 strategies. Social media and Web 2.0 tactics cost little more than the cost of time to implement and upkeep, most likely the reason for increased spend according to the report.
Stay tuned for the results of the second half of this MarketingSherpa special report with information on how your business to business marketing can get through an economic downturn on top.
Download the full first half of MarketingSherpa’s report.