Are we insulated from the Crunch?

posted on 4th August 2008 by Jon

This is a question that most web design / digital agencies will find themselves being asked in the present economic climate and the one thing that most people ask me when I tell them that I work in web design.

It’s a tough question, especially in an economy that is so inter-connected, not just in terms of industries but internationally as well. If the tough times are well and truly upon us then it’s hard to stay completely insulated from what’s happening. In some way, we are all going to feel the pinch and the effects of other industries finding it hard (e.g food and petrol...). We work with a number of partner agencies in advertising and marketing and it’s clear that they are feeling it at present. One advertsing agency we were working with who were enjoying a strong period of growth and expansion just six months ago have just informed us that they are no more as times are very hard. But, advertising is - so they say - always the first industry to feel the pinch when consumers tighten their belts.

Our own experience paints a fairly positive picture in that the companies that we work with have tended to focus their budgets on marketing streams that present a stronger ROI to ensure better value for money. In our industry that generally means Google AdWords, Pay-Per-Click strategies or banner campaigns where the return is almost guaranteed.  We’ve also started working for more clients who until recently only ran offline businesses as they look to open a new pipeline of business and attract new customers by selling their products online.

There is no question that times are tough and that they may be getting worse, but for now, the seas in our industry seem fairly calm. Whether this is something we are going to ride out or simply just the calm before the storm - we shall have to wait and see.