Is Social Media Recession Proof?

According to a new study by Forrester Research and written up in AdWeek Social Media will weather a recession nicely.

“…. According to the Forrester Research report, marketer moves into areas like word of mouth, blogging and social networking will withstand tightened budgets. In contrast, marketers are likely to decrease spending in traditional media and even online vehicles geared to building brand awareness.”

Why social media is recession proof?

Josh Bernoff had summarize five key points on why social media recession proof:

1. It’s not a tech bubble.  The last recession was cause by tech-bubble and terrorist attack.  This recession cause by housing bubble.
2. Awareness ads will lose effectiveness.   In a recession, ordinary consumers like you and me aren’t as willing to spend because you’re worried about your future. This make advertising expensive and is a lot easier to cut than headcount. Event though some are predicting ad spending will hold up or going up.
3. But social applications are about consideration, not awareness.  Blog, word of mouth, social network..there are about people connecting to other people.  You can resist advertisement, but if your friend suggest a brand or a movie to you, that is more persuasive than advertising.  This is were traditional advertising had fail.
4. It’s cheap.  It’s cost typically between $30K to $300K.
5. It’s measurable.  If your current media doesn’t have a measurable tool, your better get one.  If it’s generate traffic, lead or conversation than you know it’s working.

6 key consideration for social media strategy

Junta42 summarize 6 key strategy consideration for your social media.

1. As a marketing professional, use social media yourself before you make any decisions.
2. Forget about ROI. Social media (when you get there) will be a cost of doing business.
3. Assign a Reputation Manager.  Your customers are talking about your brand, someone needs to be a champion for listening to that conversation..
4. Focus on the audience.
5. Don’t make up marketing objectives to fit social media.
6. Honesty and transparency is required.

What do you think?

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Tagged as: Blogging, brand awareness, forrester research, housing bubble, marketers, media strategy, social applications, social networking, traditional advertising, word of mouth