Recession to change marketing this festive season?

The last quarter of 2008 was the first full quarter the US experienced following the start of the economic crisis which has since spread to many countries around the world. In their desperation, brought on by the crisis, marketers in the US looked for ways to maximise sales and pursue what was certain to be illusive sales targets. For the US market, mobile media truly came into its own during this time.

Turned to mobile marketing

Many businesses turned to mobile marketing to help boost revenues and save on their already reduced marketing budgets. Some companies, including giant retailer Walmart, used regular SMS alerts to notify consumers of new and sudden special offers in an effort to stimulate demand.

However, despite these mobile marketing efforts, the US economy in quarter four of 2008 still shrunk by a staggering 5.4% year-on-year. Without the mobile marketing efforts, perhaps consumer expenditure could have been even less than what the US economy experienced?

While in 2008, largely the US the immediate punished of the crisis, South Africa and many other countries around the world were still virtually experiencing the usual fourth quarter consumer exuberance as it would be months before the crisis in the US would extended to our shores.

Ushering in a recession

Sadly, we now know that SA's GDP did in fact have a year-on-year decline of 2.7% in the last quarter of 2008, followed by an even bigger year-on-year GDP drop of 6.4% in the first quarter of 2009, officially ushering in a recession.

With the fourth quarter of 2009 almost upon us, many marketers across all corners of SA will by now be commencing plans for their festive season promotional campaigns. While SA's GDP showed a slower decline of 3% for the second quarter as reported by Stats SA, the country remains in a recession.

Assuming that the recession stays with us throughout the festive season, the question that must be asked is how imaginative marketers will be regarding their fourth quarter campaigns, both in terms of effective use of marketing budgets, as well as the value that will be proposed and offered to the consumers?

Role of mobile media

I must declare that I am a big fan of mobile media and new media in general, and therefore I shall be observing how the role of mobile media will change during the upcoming festive season.

The use of mobile media will depend on whether or not brand managers perceive any value in mobile media, as well as the extent to which media and advertising agencies alike are willing to integrate mobile media into their clients' campaigns.

Whatever happens, this is sure to be a bargain-filled festive season for the consumer, especially if we remain in the grips of a recession.