Tough markets demand new strategies. Researching our first monthly review of 2009 confirmed that while internet use continues growing, the advertising and media sectors (in almost every market) are under exceptional pressures. Hardly news, but the patterns emerging are more complex than simply contracting markets: budgets are on the move, and most firms are unprepared.
Broadcasters and print publishers are the worst hit, but all web media groups need to focus on strategies that create the right environment for their advertisers rather than simply doing what they did last year. The latest IPA Bellwether report forecasts the lowest ad revenues in TV and print for years and without the right web products, the online editions of traditional media won't make up any of that shortfall.
Advertisers are cutting spend like never before. Some simply cut all marketing budgets evenly; but smart brands are completely changing their media mix: cutting the fat and finding new strategies that use email and websites at just the right points to build brand and sales. Many digital marketers we've been working with report cuts of 45-65% in their ad budget, but have found ways of losing only 15% of the overall impact. Economic pressures are triggering incredible innovation.
Although consumer spending has contracted, Christmas still saw increasing numbers of shoppers head online in most markets, looking to find the best price. It's all about price in 2009, so firms without strong search and price comparison strategies lost out. Here in the UK, a massive 3.8m of us were googling away on Christmas Day itself, hunting the best deal.
As strategists and trainers we're seeing a fundamental shift in behaviour and corporate strategy on the same scale as we tracked in 2001. The digital retail, media and marketing industry emerging in 2010 will look very different from that of the mid 2000s.
I hope you find the insights and links here useful. And remember that the team here help firms on projects large and small to change their content, commerce and communications strategies.
Read January 2009
30/01/2009 | Related stories: advertising Bellwether Christmas Digital Intelligence digital marketing digital trends ecommerce internet use UK