Devoted to online marketing, viral marketing, and web marketing

On another blog I talked about the impact the storm season and unknown disasters can have if we don't have contingency plans in place.

A recent post by my colleague at Ad Hurl, George Parker, talks about the subprime tsunami that could have a drastic impact on generating revenue through advertising.

Just like any business, as George says, we need to be "prepared for the worse." Just like the tropical storm season that's upon us with "Erin" about to hit Texas, we need to have plans in place in case advertising revenue begins to dry up.

The point is when things tighten up in business, ad budgets are cut drastically. That's why it's always known as a cyclical business. Right or wrong, it is a historical fact, not a debate. It will probably happen.

Now having said that, I think the least impact of ad cutbacks will probably be on the Internet. The reason is companies have allocated certain percentages of funds for that task. So even if there are across-the-board cuts, it's very probable the Internet will stay healthy in the area.

That doesn't mean there won't be cutbacks, just not as drastic as in other mediums.

Will things tighten up? No one knows. Don't believe everyone that says they do. A lot of this is connected to the current FED policy where Bernanke has chosen to battle inflation, which means he'll resist lowering interest rates, which means credit could remain tight.

We need to have plans in place assuming the worse while hoping for the best. Again, don't get caught in the debates and theory when it relates to your company or online strategies. This isn't something you get to vote on or make a comment about. It's real life and the consequences could impact your business and strategy drastically.

In times of uncertainty like this, it is those with the best backup plans in place that will survive. Don't be caught unaware if things take a drastic downturn. Be prepared!