Future bright for digital marketing?

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Now that the recession appears to be ... well... receding, it's a good time to reflect upon the viability of digital marketing. This is important to DEV projects because of the lower barriers to entry.

For a while the digital marketing picture was confusing. In the depths of the recession it seemed that marketeers were seeking refuge in more traditional forms of advertising as the credit crunch tightened marketing budgets. Then Procter & Gamble claimed that they were likely to increase digital spend due to its “potential for delivering an enormous return on investment, because the paid-for-cost can sometimes be minimal”.

In mid 2008 Digital Marketing Group released preliminary results showing that operating margins are ahead by 3.6%. “[The slowdown] is definitely not reaching digital,” Ben Langdon, Digital Marketing’s chief executive, is quoted as saying “In fact I suspect the transition of money from traditional to digital will be increased in a more difficult environment. You can achieve a higher level of reach and efficiency with lower levels of spend in digital.”

The choice of whether or not to use digital advertising on a DEV project, at least in a bear market, depends upon the nature of the idea being prototyped. Where reach and efficiency count most is in developing new markets, or in securing established ones that are cyclical or which exhibit large customer churn rates. Other established markets, such as those for luxury goods, are perhaps best dealt with using traditional advertising media to reinforce brand awareness and convey the impression of stability and continuity.

- Ian M

Ian Mitchell is a DEV Project Manager and has a special interest in process engineering