One thing is clear: The recession is upon us, the crisis is here. Nobody will be spared. But as an entrepreneur (web site creator), what will be the impact on our site(s)? I think that there will be a small number of significant impacts. These issues may even be very noticeable.
The impacts
First, Recession means reduced activity. Let’s be prepared to see ad spending and the overall activity go down. After September 11, 2001, I had observed a drastic fall-off in non-essential spending (I was working in the business of art on the Internet). This end of 2008 and year of 2009 will probably follow in the footsteps of 2001-02. I would not be surprised to see visits/trafic seriously reduced in the coming months as Internet users concentrate on issues more “important” for them.
If your sales (of ads or anything else) are linked to “consumer-oriented markets”, everybody will tell you that they will slow down. Companies can easily reduce spending by cutting the ad budget (and this will be fast on the Internet). And the Internet users will not be compelled to buy T-shirts, caps, photo prints, etc.
Another issue (but what direction will it take, really?) is the exchange rate of Euro against US Dollar: It wil keep changing. For European site owners like us, this is critical since most of our sales are made in US dollars and paid in Euros. During the recent period of depressed US dollar, my ads revenue (biggest part of my web sites income) was under serious pressure (I kept less and less Euros for the same amount of ads). It starts being corrected; If the US of A are the first to get ou of Recession, the exchange rate wil soon favor the US dollar (and so, my own income).
What can I do?
This is the question asked by Lenine! What can I do? Most of these factors cannot be influenced. But, against all odds, it is possible to counter-act the ineluctable. My proposals:
- It may be time for you to start your own campaign ad, to get more visitors, to increase your market share. The ads price should go down and this is a good investment if you succeed at it.
- Beware! Reduce all accessory spending. Anything not clearly aimed at increased traffic or revenue is nto really important. It may not be time to replace your PC now.
- Create new services (or new web sites) susceptible of kicking new life to your activity(ies) without waiting for an external improvement.
With this advice, we may be able to go through the Recession in the best possible conditions. As you noticed, I am already implementing several of these ideas by myself.