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Many companies lose confidence in traditional market practices and advertising media. You only have to look at the headings:
"Harvey Norman to slash advertising budget of $ 60m; moves online"
"GM to slash $ 800M from the North American budget"
Almost 65% CMOs and market leaders say their advertising will decrease due to the troubled economy, but more of their money will go to digital marketing than before, according to Epsilon.
The question is – why?
World Change, Changing Figures
Undoubtedly, the global recession purchased by American sovereignty has contributed to a decrease in advertising budget. However, it is more than that.
Changes in information and distribution and consumption methods, along with the uncertain times we live, are creating an awesome challenge for businesses to better meet their customers.
Changing consumer behavior is to increase the need for business to remain competitive and affordable. This means that companies need to have a clearly defined, effective and measurable marketing campaign.
Since the effects of traditional media (television, printing and broadcast) on sales tend to be less measurable than direct reactions (especially the internet) in the downturn, media borrowers will be cut in favor of measurable media, but often these bills also cut.
Looking at Google's profitability in view of this economic slowdown, we see continued change in the internet and digital marketing.
Are companies reducing advertising and digital media that are printed and allocating significant money and investments in digital media? Yes, they are certainly, although many are using cost-cutting as the main reasons behind these decisions.
There is no doubt that internet marketing is intended for driving, purchasing, highly relevant, targeted and measurable advertising for traditional television and print. This enables market participants to monitor their market costs and return on equity.
Digital marketing is also significantly more cost effective.
Newspapers are broken and other traditional media feel the pinch to move online. Budgets will accompany audiences.
Is your business making it a budget for digital marketing?