MYOB’s Business Monitor Survey found that 20 percent of small businesses actually decreased their marketing spend in 2009, risking their recovery after the global financial crisis.
MYOB’s Business Monitor Survey found that 20 percent of small businesses decreased their marketing spend, 66 percent retained it, while the remaining 14 percent increased their spend to counter-balance the impact of the shrinking market place. Interestingly a greater number of businesses increased the variety of products and services that they offered, for the second consecutive year.
“It obviously depends on the business, but in general adding on more products and services – if they are not strategic to the core business – can weaken your position in the market. If you are trying to be all things to your customers, what do you actually stand for, in their mind? In particular you are susceptible to competitors who are more targeted than you” said Ms Gordon.
The good news is that those businesses who maintained, increased or re-directed their marketing activity could have had an easier job cutting through.
“Just because they decreased their spend didn’t mean that they all did less marketing” says Rene Le Merle of INeedHits. “2009 saw many businesses questioning the effectiveness of traditional advertising like the Yellow Pages. Budgets moved across to channels that were showing stronger, measurable returns such as Google advertising, SEO and email marketing”
“Last year’s financial challenges forced people to really analyse where they were investing their marketing dollars. Small business in general is working smarter”, said LeMerle
Sarah Mitchell of Global Copywriting also saw an increase in the number of clients who have embraced new marketing methods. “Recent research from the Custom Content Council indicates U.S companies spent about $15 billion for online content in 2009. I’m not surprised because nearly all of my business relates in some way to an online marketing strategy. This is a significant change and it’s being driven by the consumer.”