While reading The Economist and Harvard Business Review I was thinking about social/new media companies and consultants and their relation/strategy towards rising inflation and market recession. With businesses who deal directly with consumers (B2C), how will inflation and a recession affect their consumers? And businesses who work strictly with business (B2B), how will they address the market when their customers put social/new media on the back burner because funds are not available for non-ancillary projects. Or are they missing the point because social/new media is ancillary to every business?
Is Social/New Media Strong Enough?
Have these new industries enough worth to justify spending money when the economy is in a downturn? While inflation rises and recession creeps its way in, many are losing money but for every person who loses money there is another who is making money. Is social/new media that industry? Are these companies/individuals in a place to weather this kind of storm? Has it even been considered? If so, then what changes? I’m sure strategy must change when facing such events. While looking back into history you find that people will resort to only spending money on necessities and small priced escapism. Is our industries addressing these concerns? Or is the economy in a completely different place?
Are We Prepared?
I can’t help but think that many who make their living by being everywhere and helping their customers, whether B2C or B2B, have to adjust their strategy and their plan. Sure we can get everyone at a site or view videos but are those numbers being converted to dollars, or even better euros? I believe that there is a strong case to be made, as Pew Research and Edison Research have stated that now more than ever people would rather give up TV than the internet so isn’t the time prime for our industries to make a move and profit from inflation and a recession. Or is that just false hope? You see the prices going up, you don’t have to be the Fed Chairman to know that the price crunch affects everyone at every level no matter your income bracket. If our industry is not prepared could this time be fatal for us all? If so, how do we come together to help each other rather than compete with each other? It is important that we come together to construct strategies and methodologies that will spurn growth and foreseeable income while eliminating risk. We have to be willing to work together, something that is always hard in emerging industries as it is seen as giving up what is pripreatory, sacred, or safe.
What are your thoughts?