Internet Marketing and the Recession

Hi All,

In these turbulent times, many companies seek to cut back their marketing efforts to save a buck.

Depending on what type of financial position you’re in, a cutback may be a necessity for your company. In most cases however, cutting back marketing isn’t essential….and it isn’t necessarily wise.

Let me elaborate on this point a little bit further.

The most successful businesses and individuals, although seemingly conventional in their methods (herd mentality) are most often actually unconventional.

Take Warren Buffet for example.

While most think of Warrent Buffet as a relatively conservative blue chip investor, who uses a buy and hold strategy and invests for the long term in businesses that he understands back-to-front, he’s actually more contrarian than we think. For recent back up evidence I can point to his multi billion dollar investment in Goldman Sacks and GE. A recent investment in late 2008 totalled about 6 billion. That’s a huge chunk of his net worth, seeing as he recently signed over roughly half of his net worth (estimated at about 30 billion) to Bill Gates’ global charity.

While most people were cashing out of the markets, Buffet was moving in. Big.

After all, you can’t achieve the returns that he’s achieved by being like the rest of us. You have to work from a lower cost base and allow yourself significantly more upside.

Shrewd businesses also see this market downturn as a land grab opportunity. While their competitor’s businesses slash marketing budgets and cocoon themselves into a quasi hybernation, street smart marketers are engaging in a veritable land grab. And they’re topping up on Internet Marketing.  

Internet Marketing offers several advantages over traditional marketing. Some of which are:

1.) Generally much more cost effective than traditional marketing methods.

2.) Internet marketing is can be tracked and tested quickly and easily.

3.) Investing in a strategy often presents a long term payoff, in contrast to traditional marketing methods. (ex: SEO and Affiliate Marketing partnerships often carry long term residual payouts vs. campaigns in radio, television or print which carry short term payouts – and spending must continue heavily to draw additional payoff).

4.) It’s flexible and easy to update.

I could go ON and ON….

All that being said, I would encourage small businesses to keep Warren Buffet’s strategy in mind. I invite you to apply a contrarian philosophy to your business.

Mike.

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