OK – so we’re not economic commentators here, but seeing as EVERYBODY is going on about it (it’s a trend, isn’t it?) we’ll stick our oar in.

So, how does the economic slowdown affect us, here at Door4?

I could follow the commercially defensive lead, and boast “it doesn’t affect us, we’re all-powerful...” which we have heard from other agencies, but I don’t buy that.

In reality, of course we see the effect of the slowdown.  We are still, busy, with a good, healthy order book, but there are other, more subtle effects of the economic gloom that manifest themselves.

We work in the field of marketing/advertising (it depends how you classify what we do), and, they say that the first thing that companies cut in a recession, is ad spend.

Whoooah, that has to be bad for Door4 then, doesn’t it?

Well.  Yes, and no. 

Of course many of our clients in, and allied to the property industry (large and small, from national developers to sole trader IFAs), have seen a substantial downturn in demand for their services, and knock-on effects on their cash-flow. 

Naturally, demand for marketing and promotion services from this sector has slowed down, substantially.

However, in broader terms, from other sectors, we have seen demand for website design, hosting and search engine promotion continue, unabated.

At Door4, we do see our customers taking a more cautious view on their expenditure.  Our approach has always been one of offering a great value service – pricing options, choices and a range of ways to tackle a problem – so our clients know they are getting “the best bang for their buck”.

If you look at advertising, and marketing back in the early 1990s, during the last recession (let’s face it, we are in a recession, aren’t we) – there was a pretty flat range of media for the average SME to attack when promoting themselves.

You had standard print media – flyers, brochures, mailers, newspaper ads – and for the more ambitious firms, you could look at radio airtime, and even TV.  All of these forms cost money, as they still do.  Most would carry a generally slow rate of return, and as we understand it, all forms took a hit during the recession.

Nowadays, internet marketing and advertising offers a different, more direct, and arguably better value marketing proposition.

Many businesses appear to have worked this out – and are diverting marketing spend towards electronic media, in the hope of grabbing a larger slice of the pie, quickly - before the latecomers wake up!

Of course – that’s what marketing in a recession is about, isn’t it? 

A recession doesn’t mean that the economy has collapsed.  It doesn’t mean that there is zero GDP.  It doesn’t mean that there are no customers for your product, or your service.  We’re told that a recession refers to 2 consecutive quarters of negative growth.

So – in effect, a temporary slowdown.

What does this mean?  Well, there are still consumers out there, and of course – they’re spending less money. 

But the fact remains, that they ARE still spending money.  That revenue is still out there, to be won, as it was yesterday. 

However, whilst wily consumers are spending more modestly, those suppliers which continue to promote themselves, market themselves, and make the right noises will continue to win that business.

And – the firms which seize further stranglehold on the market (while their competitors batten down the hatch, and hibernate until the storm has passed) will emerge the victors at the other end.

OK – this is a simplified view of the situation – as I said, I’m no economist, but the fact remains, that if your opposite numbers are hiding behind the couch – now is the time to stand up and claim some market share! 

Shout about what you can offer, in fact SCREAM about it... there’s definitely someone out there ready to listen!

Leon Calverley