There has been a lot of talk about marketing budgets and our clients are asking us what they should be doing in the event of a downturn. In general, we aren't seeing a slow-down in terms of online marketing spending... some areas of interactive may hold up better than others if a true recession hits.
What's Happening with B2B Marketing Budgets? A recent survey by B2B Magazine taken at the end of Jan 08 shows that the majority (58%) of B2B marketers are not revising their 2008 budgets. Of those marketers (29%) that are reducing their marketing spend, the biggest cuts are not surprisingly in print (-45%). At the same time 12% of marketers are increasing their budgets and online marketing is the largest area of increase (+48%).
What About Social Media? Last week Forrester analyst Josh Bernoff stimulated a lot of discussion with his post on Why Social Applications will Thrive in a Recession and his report on Strategies for Interactive Marketing in a Recession where he predicts that social applications could actually thrive - note: Social Applications - not social media in general. The main point being that the first online marketing efforts to be cut will be mass-media awareness building marketing - while social applications (blogs, community, social networking sites, word-of-mouth marketing) engage the audience in the consideration phase and are relatively less expensive when compared to traditional marketing or PR.
What this means for B2B Marketers:
1. Focus on Social Applications - At a minimum, get involved in communities and social networks where your customers are already engaged. If your budget allows, include outreach to key influencers and optimizing your content and social applications for syndication.
2. Focus on a few things and do them well - the desire to experiment in social marketing sometimes leads to the temptation to just throw together some initiatives and see what sticks. Marketers would do better to focus on a few strategic initiatives that will drive their objectives and make them successful.
3. Invest in Social Metrics, all of your social initiatives should have clear measurement and payoff. Many of the social influence tools can also be used to help marketers identify influencers and buzz which can in turn help you to optimize your social marketing. At Crimson we have been using BuzzLogic and Buzz Metrics with our clients with great success. Having said that, most of these tools are still fairly new and the reporting is of most value when overlayed with more traditional web metrics. Picking the right tool will depend on your objectives - and as with any online marketing metrics tool - analysis, insight and refinement are key.
My colleague Glenn Gow recently posted on Five Tips for Marketing in a Recession. I believe his points about Spending Smarter (showing clear ROI) and Fighting for your Resources are critical for B2B online marketing - and are very closely tied. Showing clear ROI will make it much easier to make a business case for retaining your marketing budget and resources.