Get to high ground and grow some wings

There’s no doubt that the economic downturn really having an impact on every industry. Digital is not exempt either, but there are definitely some attractive opportunities out there.

This current change is happening at an interesting time for digital, which was, and arguably still is, in a high growth mode. A number of the large consultancies have announced staff cuts in recent months (LBi, Publicis), online-only companies have been hit (Last.fm, Yahoo!), traditional industries have streamlined their workforce (Marks & Spencer, Nissan) and advertising spend had been tightly controlled over the Christmas season at a usually generous time of year.

Yet it’s easy to be negative. There are clear winners – Google, Apple, Voucher Codes. New digital startups are emerging and capital funding is not dead. If you're in business, here are our tips for not just surviving the downturn but rising above your competitors, growing your business and improving the bottom line.

1. Go digital. Assess the value of producing, distributing and updating your print communication. Can it be done (better) electronically? Exchange & Mart announced last week that they are finally ceasing their print version, concentrating purely online. FT are making staff cuts but continue to invest in FT.com.
2. Increase use of digital technology across your business. Go beyond your website being a marketing channel. Consider it a sales and service channel. Improve efficiency further through the use of digital tools internally for CRM, knowledge management, HR functions and project management.
   
3. Use free and appropriate technology. Many market-leading tools are available for free. The free economy is booming! Consider web usage tracking with Google Analytics, community tools such as Kickapps and Ning, and video hosting with YouTube or Vimeo. Use appropriate technology rather than the biggest full-featured product you can find. Microsoft Sharepoint is powerful software, but not appropriate for every business. Also, consider scalable hosting services such as Amazon S3 and Microsoft Azure so you don't pay for more than you need.
   
4. Employ smarter digital marketing. Traditional display ads offer low ROI. Experiment with and regularly monitor PPC and other search engine advertising. Consider affiliates, referral models and other forms of online marketing. Be different to stand out.
   
5. Be where your audiences are. Your prospects, customers and other audiences won't always get to your website. Make sure you communicate to them where they are - social networking sites, blogs, discussion forums, news and reference sites. You need to have your voice heard outside of your website!
   
6. Get your customers to work for you. Use a "crowdsourcing" or "production of the masses" model to get your customers to contribute to product development, technical support or other parts of your operations. Nurture advocates of your brand who will do an effective job of marketing your products or services.

2009 is the year for making your spend more accountable and valuable. It's also the year for digital to be a significant enabler for your business, provided you employ the technology effectively. Contact us for a digital audit and strategy for your business.