Will the Financial Crisis affect Internet Marketing ?

It's been quite some time now that I wrote out. Nobody has been untouched by the ongoing global recession and precisely this is why I am compelled to pen about it in my blog.

Of late we've seen a crashing stock market, sky rocketing fuel prices, unemployment epidemic, horrendous real estate market. But they say the financial crisis has just started and the globe is beginning to realize the potential consequences of what has been happening to the stock market, which means there are more far-reaching, disturbing fall-outs in-store.

So amidst all the global instability, the question we are analyzing here is that will the credit crisis affect the online marketing ?Or will we see demise of the PPC advertising?

The good news is that the PPC economy is going stable. The search is being practiced healthily which is giving an expanding marketplace for advertisers. Infact the US online advertising is slated to grow 22.7% for the year 2008. It is also speculated that the economic descent might even create some unique PPC advertising opportunities. According to the Internet Advertising Bureau, the UK Internet advertising spend recorded an increase of 21% in the six months to reach June 2008. Here, search marketing was the biggest contributer followed by display and other forms.


There's Henry Blodget's, the man behind the Silicon Alley Insider, views coming in that the new interactive media formats exhibit less recessionary effects when compared to the traditional media forms. And that the advertising spending on these new media does not decline during or after any recession, it simply grows less quickly than usual days( this trend was observed in context of television and cable advertising during the recessions of the 1950s and 1990s respectively).
Per Google's chief economist, Hal Varian, the last thing that an advertiser would do in times of downturn is cut spending on search-backed marketing as accountability in these times, matters.

Let's face the facts and examine how good or bad things really are. Here's a lowdown on Google's last quarterly earnings release. Google has reported revenues of $5.37 billion for the last quarter for its AdWords search marketing program (an increase of 39% when compared to the same quarter a year earlier). This clearly suggests that advertisers are still willing to disburse money on Google.

It wouldn't hence be unsafe to state that the search marketing industry is recognizably stable owing to its very nature. Infact the measurability factor is so high in the Internet-based marketing that not only it beats the traditional forms but in times of crisis it also emphasizes on proving the RoI, thus making it the safest mode of advertising for businesses looking to go stable during any economic downturn.