Digital Marketing, Social Media Strategy, E-Commerce, Social Media Marketing

3 Reasons the Recession is Great News for Social Media

photo by bflick via flickr 300x187 3 Reasons the Recession is Great News for Social MediaThis recession is looking worse than Sylvester Stallone all roided up for that recent Rambo 14 (Rambo goes to the buffet for the Early Bird Special with some pals) movie.

It’s going to be bad. But for social media, it just might be the best possible circumstance. Here’s why:

1. Smart Buying

Consumer confidence is at an all-time low. We’re not exactly rushing to the nearest mall to make discretionary purchases. But because money is tight, we’ll want to make sure we make the best possible purchase when we do make them. 

Enter social media. 

Traffic is of course up for sites like Yelp, Amazon, Trip Advisor, DPreview.com and other review sites because of the impending holiday season. However, I believe sites that enable consumers to benefit from the experiences of prior customers to continue skyrocketing long after the holidays are over. 

If we’re going to part with decreasing dollars, we’re going to make sure it’s a good product first. 

2. Shared Angst

This recession is the first piece of long-lasting major bad news that has occurred in the social media era. Certainly the Iraq war qualifies as bad news, but it’s day-to-day impact on Americans has been mostly negligible, except of course for those served and their families. (Thank you for enabling me to live in a country where I can make a living writing blog posts and telling people how to do social media and send good email)

The ins and outs and ups and downs of this recession and its impact, duration, and cause are going to be a major topic of conversation in this country for two to five years. 

Enter social media. 

You can Tweet using the #recession hashtag, or send a friend a bowl of soup via a Facebook app. Seriously, we’re going to use social media to discuss and micro-analyze our deteriorating economic condition because it’s faster, more customizable, and in many cases more honest than real media.

I can talk to real people at a local restaurant about the recession, but then I’m only getting the local perspective. On Twitter, I can get the perspective of most of the country. That’s why social media will be the recession’s barber shop.

3. You’re Grounded

First the gas crunch. Then, the “if you want oxygen on your flight, it’s $20″ routine. Now, the recession. 

Companies are going to cut back on travel considerably. 

Enter social media.

The conferences and symposiums of the roaring 00s are going to be replaced by Webinars, Webcasts, UStreams, SlideShare and other forms of digital information exchange that will dominate the bummer 10s. 

If I owned a conference company, I’d be working like crazy right now to figure out a virtual delivery component, because given the quality of freely available content online, it’s getting tougher and tougher to justify an in-person experience. 

What do you think? Do you agree that the recession could actually help social media?

Related
  • http://hip-shots.com/ James

    Yes, I think it will.

    Smart marketers know that the relationship their best customers have with them is their ticket to recession survival. Social Media is a great way to build and support relationships. But, it needs to be a conscious choice and have a plan supported by a strategy and a budget.

    In the short term I expect we will see lots jumping on the band wagon. We are seeing this happening in SEM. The cost of Keywords is being pushed up by the inflow of new money looking for tangible results. But it’s dumb money and will soon fall out as marketers realize it’s not as easy as they thought. In the long-term, like SEM, Social Media will earn its role in the marketing mix.

    James’s last blog post..Warning – Art Direction Run Amok

  • http://hip-shots.com/ James

    Yes, I think it will.

    Smart marketers know that the relationship their best customers have with them is their ticket to recession survival. Social Media is a great way to build and support relationships. But, it needs to be a conscious choice and have a plan supported by a strategy and a budget.

    In the short term I expect we will see lots jumping on the band wagon. We are seeing this happening in SEM. The cost of Keywords is being pushed up by the inflow of new money looking for tangible results. But it’s dumb money and will soon fall out as marketers realize it’s not as easy as they thought. In the long-term, like SEM, Social Media will earn its role in the marketing mix.

    James’s last blog post..Warning – Art Direction Run Amok

  • http://cruisesource.us/ CruiseSource

    I think 2 other reasons that Social Media will take off in a down economy is that companies who have shrinking marketing dollars will be more open to experimenting with Social Media as a Marketing Tool because although the ROI is unknown, the main investment is time. So it is worth the try when there is less money to spend on other marketing efforts.

    The other reason is that because there will be more companies experimenting with Social Media, there are going to be some that are highly successful at engaging their customers. This success will bring even more businesses to Social Media attempting to duplicate the success of the early adopters.

    CruiseSource’s last blog post..The Economy and your 2009 Vacation Plans

  • http://cruisesource.us CruiseSource

    I think 2 other reasons that Social Media will take off in a down economy is that companies who have shrinking marketing dollars will be more open to experimenting with Social Media as a Marketing Tool because although the ROI is unknown, the main investment is time. So it is worth the try when there is less money to spend on other marketing efforts.

    The other reason is that because there will be more companies experimenting with Social Media, there are going to be some that are highly successful at engaging their customers. This success will bring even more businesses to Social Media attempting to duplicate the success of the early adopters.

    CruiseSource’s last blog post..The Economy and your 2009 Vacation Plans

  • http://primecutsblog.com/ Justin Levy

    I agree that the recession will actually help social media because people are going to be forced to dig in deep, think of newer, cheaper ways of accomplishing the same tasks. It is also during this recession that true leaders will form and rise to the top because they are the ones that are putting in the extra time right now so that later when the economy rights itself, they will be in a much better position than everyone else.

    Justin Levy’s last blog post..Why I Love Steak on the Bone and Why You Should Too!

  • http://primecutsblog.com Justin Levy

    I agree that the recession will actually help social media because people are going to be forced to dig in deep, think of newer, cheaper ways of accomplishing the same tasks. It is also during this recession that true leaders will form and rise to the top because they are the ones that are putting in the extra time right now so that later when the economy rights itself, they will be in a much better position than everyone else.

    Justin Levy’s last blog post..Why I Love Steak on the Bone and Why You Should Too!

  • http://twitter.com/jcleftie/status/993898767 Jamie

    RT @darbydarnit: Post by @jaybaer on why recession is good for social media: http://tinyurl.com/5bxrcc (thanks, good article!)

  • Pingback: Warum die Rezession gut für Social Media ist - Crossmediale Kommunikation

  • http://michaelashworth.wordpress.com/ mike ashworth

    I’m certain some of these things will help however they are but one set of tools to use.

    You shouldn’t use any tool until you’ve thoroughly researched your customers / target market / audience.

    Understand how they are being impcated by the current economic changes.

    I feel that Marketing is more about Psychology and Sociology than Technology.

    Mike Ashworth
    Marketing Coach and Consultant
    Brighton and Hove, Sussex, UK
    Boosting Sales for Small and Medium Sized Businesses by
    helping them find, attract and keep Customers.

    http://www.linkedin.com/in/mikeashworth
    http://MichaelAshworth.wordpress.com

  • http://michaelashworth.wordpress.com mike ashworth

    I’m certain some of these things will help however they are but one set of tools to use.

    You shouldn’t use any tool until you’ve thoroughly researched your customers / target market / audience.

    Understand how they are being impcated by the current economic changes.

    I feel that Marketing is more about Psychology and Sociology than Technology.

    Mike Ashworth
    Marketing Coach and Consultant
    Brighton and Hove, Sussex, UK
    Boosting Sales for Small and Medium Sized Businesses by
    helping them find, attract and keep Customers.

    http://www.linkedin.com/in/mikeashworth
    http://MichaelAshworth.wordpress.com

  • http://blog.carryonpr.com/ Paul Dyer

    And let’s not forget Reason #4 … Social media is relatively inexpensive when compared with other marketing disciplines and significantly more measurable. Particularly when online sales are going to drop no matter where you spend your e-marketing dollars, being able to track what exactly you ARE getting will be increasingly important.

    Good news for social media marketers – total budgets may be on the decline, but 2009 could be the year you get that long sought after bump from 1.5% to 2.2% of your company’s total marketing budget! :-)

    Paul Dyer’s last blog post..67% of CEOs to Increase PR’s Digital Spend in 2009

  • http://blog.carryonpr.com Paul Dyer

    And let’s not forget Reason #4 … Social media is relatively inexpensive when compared with other marketing disciplines and significantly more measurable. Particularly when online sales are going to drop no matter where you spend your e-marketing dollars, being able to track what exactly you ARE getting will be increasingly important.

    Good news for social media marketers – total budgets may be on the decline, but 2009 could be the year you get that long sought after bump from 1.5% to 2.2% of your company’s total marketing budget! :-)

    Paul Dyer’s last blog post..67% of CEOs to Increase PR’s Digital Spend in 2009

  • http://theadagencysurvivalguide.blogspot.com/ Kevin McIntosh

    Great post. Obviously with marketing budgets getting cut, marketers are getting more and more interested in social media (and likely getting more and more frustrated with ad agencies that aren’t stepping up to deliver on it).

    And as consumers have less disposable income to run out to clubs and restaurants to socialize, they may begin hunker down and look for ways to connect with social media.

    Hopefully, Twitter and other tools will experience rapid growth. As will social media consultancies.

    Kevin McIntosh’s last blog post..How To Protect Your Client From Getting Hijacked On Twitter

  • http://theadagencysurvivalguide.blogspot.com Kevin McIntosh

    Great post. Obviously with marketing budgets getting cut, marketers are getting more and more interested in social media (and likely getting more and more frustrated with ad agencies that aren’t stepping up to deliver on it).

    And as consumers have less disposable income to run out to clubs and restaurants to socialize, they may begin hunker down and look for ways to connect with social media.

    Hopefully, Twitter and other tools will experience rapid growth. As will social media consultancies.

    Kevin McIntosh’s last blog post..How To Protect Your Client From Getting Hijacked On Twitter

  • http://twitter.com/locomotion/status/1010726042 Locomotion Creative

    3 Reasons the Recession is Great News for Social Media http://tinyurl.com/5bxrcc

  • http://gacconsultants.com/ Mark Harai

    It is certainly convenient and inexpensive…

  • http://gacconsultants.com Mark Harai

    It is certainly convenient and inexpensive…

  • http://twitter.com/jordanwillms/status/1015246494 Social Media

    Is the #recession good for #socialmedia? Here are three reasons saying “Yes” http://zz.gd/778c0a

  • Pingback: Leveraging Social Media During a Recession | AffiliateNicheClub Blog

  • http://nsavides.wordpress.com/ Nick Savides

    In the spirit of Thanksgiving, thanks for sharing those thoughts and thanks for expressing appreciation to the troops. That’s an unexpected but pleasant discovery to make in the blogosphere. It’s enough to get me interested in what you have to say.

    Nick Savides’s last blog post..Why the World Needs Corporate Thinking

  • http://nsavides.wordpress.com/ Nick Savides

    In the spirit of Thanksgiving, thanks for sharing those thoughts and thanks for expressing appreciation to the troops. That’s an unexpected but pleasant discovery to make in the blogosphere. It’s enough to get me interested in what you have to say.

    Nick Savides’s last blog post..Why the World Needs Corporate Thinking

  • http://www.clonehigh.net/ Calvinj

    haha, I dug the Sylvester analogy

    Calvinj’s last blog post..Clone High – A Show That Was Canceled Too Soon

  • http://www.clonehigh.net Calvinj

    haha, I dug the Sylvester analogy

    Calvinj’s last blog post..Clone High – A Show That Was Canceled Too Soon

  • http://twitter.com/michaelgass/statuses/ Michael Gass

    3 Reasons the Recession is Great News for Social Media http://tinyurl.com/5bxrcc

  • letstalkandchat

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