At EIC, we love to stay positive. That being said, we also like to keep it real and anticipate what the future of marketing will look like. Let’s face it, the economy is always fluctuating and another recession could hit soon. So, where does that leave us? Where does it leave our clients? With us, you’re in a pretty good place.
First things first, let’s break it down for our clients. Most of our clients persevered the last recession and came out of it better off than their competition. Typically, they have cash stored away and because of our efforts, they dominate online. When the next recession hits, where will the 10% of people who aren’t drastically altering their spending habits go to find information? We assume it’ll be online, but you know what they say about assuming... For fact check purposes, let’s take a look at major marketing outlet trends from 2007:
Google - From 2007-2009 Google’s profit skyrocketed by 18%. This means their most profitable products saw more utilization which drove their profit. While Google’s margins were down along with the rest of the market, the company as a whole was stronger. (The Guardian)
Facebook - They simply expanded their staff by 50%. People were online more to cope with the recession. Thus, driving advertisers interest in getting in front of their customers. Facebook is free to the user so that’s where customers were living during the recession.
Those are just two major companies that we use as a baseline. But, the results were very consistent across all marketing platforms.
What Does a Recession Mean for EIC?
We’re experts in a difficult field. It’s tough to find an agency that’s as dedicated to helping clients and finding solutions as we are. This is what makes us stand out. Currently, the economy is doing so well that a lot of our clients aren’t in a desperate need of a steady stream of leads. Instead, they need more manpower and efficient systems to handle all of the leads that are constantly pouring in. We’ve recognized this new need and have adjusted our strategies. We’ve started to offer digital staffing and implement software for our clients to use in order to increase efficiency. Don’t get me wrong, we still have clients with big goals and we help them reach those goals through incredible online strategies. It’s just tough to go sell a client who has no pain for adding new revenue.
By no means are we looking forward to a recession, but it could happen and we feel for people who will to struggle through it. We know marketing dollars will be hard to come by and most businesses will want as much bang for their buck as possible. Unlike television, radio or print, we offer our clients quarterly ROI reports and walk into our meetings with 98% returns on investment. That’s tough to beat. Digital will get stronger and each dime will be scrutinized. We welcome that challenge and look forward to helping our clients navigate through a tough economy climate.