Marketing Tactics in a Downturn

Posted by
Mike Lyon
Date
 December 2, 2008
Comments
10 comments

Marketing Sherpa has a great chart of the week. It is a revealing graph on where advertisers will be spending their money in light of the “downturn”.

The top two spots for increase will be Web 2.0 (Social Network Marketing) with an overall 28% increase and Email Campaigns, with a stunning 34% increase.

The areas with the most dramatic decrease are Radio/TV ads (a massive decrease of 77% overall), rented email lists (a 37% decrease) and Print (hammered with a 56% decrease). None of this is a real surprise to some, but it definitely reinforces what everyone has been talking about for the past year. In fact, we had a lot of builders in a recent webinar that were thinking in the same direction. There is a huge buzz right now about the Social Marketing scene and how builders can connect with customers.

Traditional marketing sources aren’t cutting it any more. When you start to tighten the purse strings, it really makes you focus on what works well first. So why not use this as a guide. Thousands of marketers have just shown you what they have measured, tracked and determined works the best.

But let’s make the argument—even if you did have a bottomless budget for marketing, why would you spend it where customers are not likely to be looking? As the marketing dollars shift, customers will shift as well. They will gravitate to the areas where the best information is—which, in turn, will reinforce the changes.

This is “permission marketing” in full force. The shotgun approach just isn’t effective. You may hit a lot of people but are they the ones who are ready, willing, and able to buy a home? When you become strategic and focus your efforts like a laser, you may not hit as many people, but you’ll hit the right ones.

  • Anonymous

    It’s encouraging to see builders embrace new media. As we continue to move our product into the space where demand exists (online search for new homes) instead of spending thousands of dollars trying to get buyers to pay attention to our marketing messages (display print ads), we will begin to regain the trust and attention of buyers. Great post!

  • It’s encouraging to see builders embrace new media. As we continue to move our product into the space where demand exists (online search for new homes) instead of spending thousands of dollars trying to get buyers to pay attention to our marketing messages (display print ads), we will begin to regain the trust and attention of buyers. Great post!

  • Isn’t it great. I call it job security.

  • Isn’t it great. I call it job security.

  • Hi Mike,
    Great graph! Print advertising is taking a beating they may never recover from. Check out this site maintained by Paul Gillin. http://www.newspaperdeathwatch.com/.

    Online display advertising is taking a huge dip. I hope it’s because advertisers are realizing it doesn’t work. Display advertising is taking (one-way, in your face,) traditional advertising online.

    What do you make of the paid search being reduced?

    Jim Adams – CEO
    New Homes Directory.com

  • Hi Mike,
    Great graph! Print advertising is taking a beating they may never recover from. Check out this site maintained by Paul Gillin. http://www.newspaperdeathwatch.com/.

    Online display advertising is taking a huge dip. I hope it’s because advertisers are realizing it doesn’t work. Display advertising is taking (one-way, in your face,) traditional advertising online.

    What do you make of the paid search being reduced?

    Jim Adams – CEO
    New Homes Directory.com

  • Hi Mike, and congratulations on taking the leap! What are your thoughts of the success of new media in more traditional, rural markets? We are in upstate NY and I am curious to know if you feel that these non-traditional outlets are as successful here.

    Thanks!

  • Hi Mike, and congratulations on taking the leap! What are your thoughts of the success of new media in more traditional, rural markets? We are in upstate NY and I am curious to know if you feel that these non-traditional outlets are as successful here.

    Thanks!

  • Thanks Michelle! I definitely think these will work in any market – if done correctly. Remember – it’s not all about the technology – but the message as well. No one wants to be sold – but everybody loves to buy. Keep providing valuable content and consumers will respond.

  • Thanks Michelle! I definitely think these will work in any market – if done correctly. Remember – it’s not all about the technology – but the message as well. No one wants to be sold – but everybody loves to buy. Keep providing valuable content and consumers will respond.