While it's not a surprise that advertising budgets are slashed during economic downturns, the Internet does add something that hasn't been there before during those major times.
Google (GOOG) thinks this is true as well, as their chief economist Hal Varian believes the problems related to the credit crunch won't have much impact, if any, on the company.
He does acknowledge that traditional media outlets will suffer if things continue to tighten up.
Varian believes Google is safer because of it's targeting ability, saying, "It's measurable, it's quantifiable and that's the very last piece of advertising a company wants to cut. We're looking pretty good from the viewpoint of macroeconomic sensitivity."
Concerning the housing industry and advertising, Varian added, "I can certainly say they haven't cut back on the Internet side." The reason he cites is competition is getting even tougher.
I think this is going to be true for the majority of online marketers relying on an ad-supported business model. The Internet is where the majority of advertising growth will be over the next several years at least.
As a result, it will be the last place companies and agencies will make cutbacks in.
While there's no guarantee things won't be cutback some, unless someone is serving an industry struggling tremendously, online markerters relying primarily on ad-supported strategies shouldn't be hurt too much, if at all, when times get tough.
Comment Preview