gas prices + recession = bad advertising days ahead
Generally speaking when the prices of gas hit the roof with people saying it will reach 12-15 dollars a gallon is the exact moment when companies need to reconsider their advertising options.
Let’s face it.. there is an economic disruption out there and gas prices like this will force a general recession.
The problem stems from the fact that the average person is looking at 1 paycheck a month going to Exxon leaving him working on 3 paychecks a month total, that includes food (prices skyrocketing), mortgage payments (another disaster), credit card debt (another mess) and finally to purchase products (the very same products that are increasing in cost due to transportation costs to the store and forcing the individual to pay more to fire up his engine to drive to the store in the first place). It’s just a bad situation overall.
So looking at it this way, people over the next few months or longer will be spending MUCH more time at home, based on current trends they are going to be spending that time on their computer.. not watching TV (if you really want to get down to it.. they will be surfing the web, playing games or watching TV on their computer.. IE: Hulu.Com or Veoh.Com).
The presents a huge opportunity for advertising agencies and marketing agencies that specialize on online marketing, but it’s a disaster for traditional firms… in focus the holding company advertising agencies that have virtually neglected online and just recently have started to focus on it… but sorely lacking the infrastructure needed to complete a social media campaign for example.
In short, InterActive marketing firms are set to grow at the expense of holding companies. During a recession is exactly when firms that are innovative tend to shine. In this case, it’s going to be an interesting competition for the next 12 months.