An Ezine for Advertisers

OCT 2, 2008

an Ezine for Advertisers

Issue #537

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   IN this ISSUE....   

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  • In a Recession, Try Social Marketing

  • Proactive Marketing During Recession

  • Marketing TIPS...  New Exchanges

  • Your Classifieds

  • Services

 

From the Editor

     

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RUMBLES from the Jungle,

an ongoing Safari in the ever changing Jungle of Online Marketing...

 

RUMBLES is an ezine for advertisers, providing useful information about online marketing and advertising.  We help you save money and time, by sharing ways to improve your online advertising results. 
 

Memory Walk 08 - Alzheimer's Assoc.

Love Remembers

Thank you to all who contributed. Our team ranked #1 funds raised, and walkers recruited and we were awarded Best Tshirt Design!  Overall... this event raised 30,000.00 for Alzheimer's research.  


 

Sincerely,

 

Rhonda Hailey

 


 

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Feature Article..

 

 

 To gain market share in a recession, try social marketing
Sara Holoubek


While some economists fear that the US economy borders on recession, especially in the wake of the Federal Reserve's bailout of AIGlast week, there is little doubt that the marketing and media industry is already suffering.

William Morrison, partner and senior Internet analyst for ThinkPanmure, has posited that the industry is in the second phase of a media recession — a period marked by the cancellation of any “up-front” commitments and contracts.

“Our research suggests that we entered phase two of the current media recession during the third quarter,” Morrison said in a September 15 industry update, following conversations with publishers reporting cancelled advertising contracts.

Just two weeks ago, AOL publicly announced that its network advertising had softened in the auto, financial, tele­com and travel industries, and indeed had experienced cancelled contracts. Morri­son pointed out that any optimism that accompanied this news has since faded, and added that, while finance and travel categories will take a hit, “the auto cat­egory is likely to see the most significant cuts during the second half of 2008.”

His firm's research suggests that GM's public announcement that it was slash­ing its ad budget will indeed affect online advertising. And, eMarketer has twice revised its estimated online ad spend in 2008. Initially, it had forecast $27.5 bil­lion; that fell to $25.9 billion in March and $24.9 billion last month.

While this news might send many to revise their marketing budgets, others see opportunity in a downturn. “It's during a recession that a brand should position itself as the leader in its category. It is the best and least expensive time to gain mar­ket share,” said Robb Hecht, digital mar­keting strategist for IMC Strategy Labs. “The positive effect of our downturn is that online publishers will increasingly be more open to negotiating deals.”

While these environmental conditions will allow savvy advertisers to shift more of their budgets towards affordable display ad opportunities, Hecht agreed with most experts that search and direct response mechanisms will be the dominant media channels in the short term.

“The Internet remains the vehicle of choice for direct marketers [vs. brand marketers] and, in a recession, the focus is on lead acquisition and getting a return for every dollar spent,” said Hecht.

Another low-cost opportunity for adver­tisers online is social media. Not only does the medium offer an efficient and effec­tive means of extending reach, but it can result in high engagement levels when properly executed.

“Brand engagement studies show that the impact of placing advertisements on the quality long-tail site — such as a social network — exceeds the impact of broader sites because consumers are favorable to the advertisers who support their favorite niche sites,” Hecht said.

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Daddy always said...

"Learn from the mistakes of other's; You don't have to make them all yourself." 


Sound advice..  

Although the research article below may be dated...  the lessons still hold true.  This isn't the first slump in the economy we've seen; and it won't be the last.  Some companies have learned from slumps in the past and we can learn from them too. 

How is your marketing responding to the present economy?

Rhonda Hailey,
Editor



Proactive Marketing During Recession

UNIVERSITY PARK, PA (March 29, 2005)—For well-positioned companies, an economic recession should not prompt marketing cutbacks, but rather an aggressive increase in marketing spending to achieve superior business performance according to research authored by Gary Lilien and Arvind Rangaswamy of Penn State's Smeal College of Business.

"Turning Adversity Into Advantage: Does Proactive Marketing During a Recession Pay Off?" is forthcoming in the International Journal for Research In Marketing. The study finds that firms entering a recession with a pre-established strategic emphasis on marketing; an entrepreneurial culture; and a sufficient reserve of under-utilized workers, cash, and spare production capacity are best positioned to approach recessions as opportunities to strengthen their competitive advantage.

"Athletes often choose times of stress to mount attacks: strong runners and bicycle racers may increase their pace on hills or under other challenging conditions," the authors write. "In a similar vein, proactive marketing includes both the sensing of the existence of the opportunity (a tough hill and fatigued opponents) and an aggressive response (possessing the necessary strength or nerve) to the opportunity."

Conversely, the study finds that firms without these strategic marketing traits are unlikely to derive economic benefits from a proactive marketing response during a recession. Such companies are better served by not increasing marketing spending until conditions improve.

"Those firms with a strategic emphasis on marketing have already put in place the programs that help them derive value from their marketing activities (e.g., well-recognized brands, differentiated products, targeted communications, good support and service, etc.)," the authors add. "Thus, Wal-Mart would more likely benefit than the much weaker K-Mart franchise if they had both chosen to increase spending during the most recent recession."

To arrive at their conclusions, Lilien, Rangaswamy, and their co-author Raji Srinivasan of the University of Texas (a former student of theirs at Smeal) surveyed more than 150 senior marketing executives from a variety of industries including semiconductors and electronics, manufacturing, and telecommunications. Using the most recent recession as the context, the authors collected data during the second and third quarters of 2002.

REPORTERS & EDITORS: For more information, please contact Wyatt DuBois in the Smeal College of Business Media Relations Office at 814-863-3798 or wed112@psu.edu.


Share...  What proactive tactics are you using, that is working
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