With the financial crisis looming ever larger, it is no surprise that some businesses such as AT&T and General Motors are slashing marketing budgets in an effort to stay afloat in this volatile economic environment.According to recent articles, advertising agencies will be among the first shops to feel the impact of the economy as companies cut advertising budgets and fewer new business opportunities arise. Further data from Epsilon Data Management LLC supports this trend with reports that suggest approximately 65 percent of chief marketing officers say they will decrease advertising spending because of the current economic situation.
Emily Steel with the Wall Street Journal provides an interesting perspective on the current economy and its effect on the digital media industry. She notes in a recent article, entitled “Marketers Cut Back on Digital Media,” that as businesses cut their advertising budgets the money that was set aside to experiment with new digital media technologies will no longer be available to pursue these innovative ideas. She goes on to say that these “experimental advertising techniques, which were hailed as the next big thing, will be among the first to hit the cutting-room floor.”
As consumers cut down on discretionary spending, it’s critical to continue building brand awareness and to increase consumer demand for products and services. Here are a few reasons why engaging consumers – even during a budget crunch – is important for companies:
- Maintaining a strong and positive image drives consumer’s perception of a business
- Engaging with consumers allows them to develop a more personal connection with the company’s products or services
- A downturn in economic conditions allows proactive companies to stand out and take market share from businesses that don’t creatively and proactively engage with consumers
So how can companies continue to engage customers despite tight marketing budgets? Creative advertising, marketing and PR campaigns can definitely help bolster an organization’s image and increase appeal with the broader public. Emerging media such as social networking will be a key component to help meet these business objectives and is an affordable option for companies to invest in to engage with and generate a significant audience.
Some other cost-effective ideas that enable companies to strategically promote a positive company image through media relations include:
- Desk-side briefings
- Speaking opportunities
- Blogging and engaging with social communities
- Proactively generating editorial opportunities
- Issuing relevant press releases
The bottom line is, if you want to stay connected to your customers during tough economic times you need to get creative and execute proactive campaigns that truly engage your customers and keep you top of mind.