Fri Mar, 2012 by Derek Mehraban
There is a lot of talk about the possibility of a double-dip recession in the US. News like that keeps digital agencies on the edge of their seats. The easy expense for a brand to cut is advertising, especially its new and hard to quantify advertising units. Recent data from Spain, however, offers some hope.
Spain is at the head of European fears about economic decline because of the sovereign debt crisis. Spain’s overall GDP has taken a beating over the past years and does not show any immediate sign of letting up. Despite the recession in Spain, online advertising has continued to grow. More money is being directed towards online advertising and while the growth of the spending is declining, it is still growing.
Why this is happening is not clear, but it does address the immediate concern of the social media agency. Maybe it is because brands realize that the way to secure market share is not to retract like a turtle but rather to increase engagement. The data does not show us what is happening to traditional advertising, so it may be the case that brands are diverting funds into online away from traditional or are possibly increasing overall advertising budgets.
One of the services that can help keep clients from fleeing the social media agency is cross-platform targeting. New services are constantly appearing which will help unify a person’s online habits across devices (PC to tablet to smartphone) into a single pattern. The single pattern will help increase the efficiency of online targeted ads. Tapad is an example of such a service. While not alone it stands as an example of what can help out if a recession does return to the American market.