Economic Downturn Slices Corporate Marketing Budgets

American companies are tightening their advertisingon the end result instead of the process. Let's face it.
budgets and finding new ways to entice customersIn this economy, when it comes to PR, clients are
amid nationwide economic woes. MarketingSherpa'shungry for tangible results.
2008 "Marketing During an Economic Downturn"As said before, the current economic slump is forcing
survey reports 60-percent of large companies aremany companies to slash their marketing budget
significantly shrinking traditional type marketing budgetsdrastically. With a high demand for income, companies
this year.are employing new methods to generate quality leads
"What happens is that the current economic crisis putsand drive traffic to their websites.
pressure on advertisers to save money and find moreOne successful method is online marketing which has
effective marketing channels," said Karsten Weide,become a hotbed of activity in the promotion and
program director of Digital Marketplace and Newsales of products. To survive in this "technology
Media at IDC.obsessed" marketplace, companies are not only fine
While much of what is left of the marketing budget istuning their existing websites but are also developing
being filtered into online media, traditional advertising likeecommerce sites and blogging to gain online visibility -
newspapers are facing the biggest dip in revenue in 50in addition to using the "old" stand-by of online
years according to The Newspaper Association ofadvertising.
America (NAA).But, with millions of websites in existence and
This advertising cutback is prompting many businessesstaggering numbers of products being sold over the
to seek out cost-effective alternatives, such as PR, tointernet (rather than the brick and mortar stores)
build their small and mid-sized businesses into largerpromoting your company and products online has
ones.become yet another marketing obstacle to overcome.
Although corporations may understand the power ofWhile search engine optimization (SEO), podcasting,
public relations, many assume that a media-focusedvid-casting, blogging and social media marketing are all
PR campaign is beyond their fiscal reach. This comesgreat online promotional tools, there is still the challenge
down to the fact that most traditional public relationsof how to drive people directly to your website or to
firms charge hefty monthly retainers without offeringan online retail outlet to purchase your products.
any guaranteed results.And this is where publicity becomes more valuable
Yet, when it comes to PR the results are all thatthan ever before. Publicity is a classic promotional tool
matter. Executives are demanding more bang out ofthat is (and always will be) your direct path to potential
every buck, with none of them wanting to pay forconsumers. Imagine having live conversations with tens
pitches that don't pan out. At the end of the day,of thousands, and in some cases millions, of people
executives and decision makers need to know thattelling them to check out your website and order your
their financial investment will be rewarded with aproducts online! What could be better?
measurable return.A growing number of marketing departments and
While most PR firms want to be paid for the entireCEOs across the nation are sitting up and taking
campaign procedure, the philosophy of our firm is tonotice. In these critical economic times, marketing
only get paid for the media exposure we obtain. Wedollars are a precious commodity and must be
developed a fee structure based on the delivery ofinvested wisely.
radio and TV appearances, which forces daily focus