As we are in the midst of a global economic crisis it makes sense for companies to hold back their spending and make tough decisions. In the face of uncertain times ahead there are still consumers, products to be sold and marketing and advertising to be developed. For some companies, the holding back of spending i forced upon them. They are losing sales, market share and cash. Take the big three automakers as an example. Their pullback on spending is a necessity to avoid bankruptcy. So what do the competitors of the companies in trouble do in the face of a huge opportunity?
By not doing anything (i.e. keeping spending the same as the previous year) companies could see substantial increases in share of voice and market share as their competitors reduce spending. By reducing their own spending, companies are simply giving back the free opportunity presented to them. It will be interesting to see what Toyota, Honda and Hyundai do in the era of the Detroit 3 troubles.
One area that all companies can turn to in the era of economic uncertainty is Social Media. We all know that peer recommendations and ratings influence purchase decisions, and the reality is they are much less expensive to develop than traditional advertising. Will we see an increase in social media marketing through 2009 and beyond? Can it become a more standard element of all marketing campaigns? The next year will be incredibly telling.
What are your thoughts? How much will social media marketing change in 2009?
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