Tuesday, April 1, 2014

The Economy and Business-to-Business Media

Advertising in the business-to-business media world is connected to the economy in the U.S. and, to some extent, the world.  This has been the case for as long as I have been involved.  However, the effect of the economy on advertising is not alway aligned in the most optimal way.

When the economy is down, companies often reduce their investment in advertising.  I would not recommend that because the economy has always recovered and the companies investing in the downturn usually benefit in the upswing.

When the economy is up, we see more investment in advertising which is the right idea too.  Consistent investment in marketing, advertising, and promoting your company is always the advised method of increasing brand awareness and generating qualified sales leads.

In 2013, the U.S. Gross Domestic Product rose by 1.9% according to a report I read from the National Association of Manufacturers (NAM).  In the fourth quarter of last year, the GDP showed a 2.6% increase which is a sign of optimism.  Many economists are calling for a 2.8% increase in U.S. GDP for 2014, again a positive.

Add to the good GDP report a Purchasing Manager Index report of 57.1 in February and 55.5. so far for March.  These are good numbers taken in the context of any number over 50 indicates that manufacturers believe that the economy is improving.  Durable goods orders rose 2.2% in February after declines in December and January.

We are still in the upside of the economic swing.  We may be past the peak of growth and either flattening out or declining slightly but we are showing overall increases from the previous year at this time.  This is still a great time to invest in advertising to grow the awareness of your company and products.

I still recommend an integrated advertising approach that includes print advertising in magazines, digital advertising on websites, and e-advertising in e-newsletters and e-blasts.  Please contact me if you would like more recommendations on business-to-business advertising. mference@wtwhmedia.com