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Google Adsense: Post credit crunch.

Advertising behaviour during a recession

8:35 am on Aug 25, 2008 (gmt 0)

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Just checking my August stats against those of previous years and I'm noticing that the indicators are good. I've more traffic and plenty of clicks.

However rates are falling. I know that during tough times companies are tighter on all budgets, and that marketing spend often falls. Of course the advertising industry reasons that those businesses that maintain or increase their advertising spend during recession become the brands that consumers buy when times get better.

I just wonder if businesses are cutting back on advertising spend - and that means my Adsense rate is falling because there is less competition for the keywords that my site depends on.

My view is that there are tougher times ahead.

3:27 pm on Aug 25, 2008 (gmt 0)

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All of my AdWords clients but one are *increasing* their advertising spend (the one who isn't is a doctor who's getting ready to retire)

But perhaps it depends on the niche.

9:30 pm on Aug 25, 2008 (gmt 0)

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It's hard to say whether advertisers will cut back or not. i would say that it would have to depend on niche and advertiser circumstance.

However, I always do wonder if some of the advertisers who have traditionaly spent large amounts on TV, Radio or magazine might be tempted to switch to internet in these harsher economic conditions. Organisations do tend to become leaner and meaner during economic downturns.

The reasons for this I imagine would be twofold; Firstly, advertising on the internet might be relatively cheaper in terms of $per reach and secondly the advertiser may consider that their money may be better spent targeting their customer to maximise ROI.