Bear Stearns, Fed Rate Cuts….and internet marketing?

Update (03/18):  Excellent sythesis of the Yahoo! investor report today by Techcrunch. Industry folks can have varying opinions of Techcrunch, but they are a hard working group of people.

Okay, less than a day went by. Not changing any predictions, but Yahoo’s revenue projections with “adjustment for headwinds” still show some pretty strong numbers with a high headcount “in my estimation” to attain those numbers.

http://www.techcrunch.com/2008/03/18/yahoos-three-year-plan-grow-revenues-73-percent-by-focusing-on-display-ads-mobile-and-better-search/ 

Of course, it’s very easy to do that if you drive incentivized marketing to *premium ad buy placements. Like our post the other showed: https://overpricedad.wordpress.com/2008/03/12/and-its-not-just-the-continue-buttonfacebook-do-something/ 

Anyway….. 

——-

In the wake of the JP Morgan bailout, I had a very spirited conversion with a former manager of mine.

The topic: online marketing dollars in the wake of a dried up capital

Trusting his expertise, I agreed to consider or concede that marketing dollars would probably be curtailed online in the response lack of credit.

However, my ammunition for industry strength vs. macroeconomics had the following soft data:

– Numerous recruiters commenting that job reqs were still increasing

and hard data:

– Numerous higher quality lead gen firms saying that business had never been better.

From past customer acquisition, lead generation experiences, I can attest that there is certainly a flight to quality (and a premium paid for quality) during recessive markets. Some examples of this are the flight to search marketing in the wake of the dot com meltdown and more recently online players left standing after the shake-out in the mortgage lead generation space.

Here are some soft predictions if the money supply dries up: (in no particular order)

– Incentive marketing feels pressure as more customers unaware of re-occuring charges default on credit cards

– Performance marketers continue to rule static and standardized media placements like text and display ads.

– Brand marketers focus on “what they know” and gyrate towards video marketing and acceptable social media placements where demographics and dma analysis resemble trusted offline methodologies

– EDU lead companies face mounting pressure over rising student loan defaults and lack of investment in earning potential by subprime clientele

– New reporting platforms that require heavy integration without proven ROI have a tough time getting integrated

Probably good to redress this post again in one quarter or two to see how 2008 has progressed.

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1 comment so far

  1. Search Engine Marketing Firm on

    I think that’s a good strategy ,I think optimization for errors needs to be looked at case-by-case, although as a writer and image-conscious individual.search engine marketing firm is concerned about the appearance of your online business on the top of search engines.


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