With the economy continuing to decline, companies of all sizes are now finding themselves having to make adjustments to their marketing budgets, while still hoping to maintain consistency in performance and conversion.

This was made quite clear in a report released today on MarketingSherpa.com.

Marketing Adjustments for Tough Economy

It makes sense that you would see the largest increase in the two mediums that cost much less than print advertising, direct mail, etc.

It’s my opinion that social network marketing and finely-tailored emails are the best way to go anyway, especially for nonprofits and small businesses.

Of course you still want your efforts to come full circle by having some paid online marketing to compliment and/or enhance these efforts, but when times are tough, you go with what is cheap and effective (if you know what you’re doing).

But here is what I find especially interesting:

Note that the chart shows only the percentage of marketers who are adding to or subtracting from their budgets; it doesn’t reflect their investments – an important distinction. For example, one-third of marketers predict that they will reduce their paid search spending; 27% plan an increase. Based on our analysis, the dollar value of those who plan on increasing will significantly outweigh the value of those who are decreasing.

So even though shifts are being made to delve into cheaper marketing mediums, the amount of money that appears to be spent overall looks to be on the rise.

This is definitely an interesting reflection on how companies are responding to our current economic woes.

I know that in the past, the marketing budget is usually one of the first to be slashed by executives, but it appears (at least from this report) that the trend is changing.

Of course at the same time, I cant help but wonder the sizes of the businesses used in this sample. It seems likely that those increasing their marketing budgets are larger companies that don’t have to worry about access to lines of credit for business operations.

If you’re a small business owner or marketer, please let me know how this economy is effecting your marketing efforts, and what you’re doing as budgets continually becoming tighter.

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