As the credit crunch deepens and more experts are predicting a recession, many salon owners are asking us how to market their salon more effectively during a recession. A couple of recent reports indicate one possible solution - try internet advertising for your salon or spa.
“Shoppers go online during Credit Crunch”
IntheNews.co.uk reports findings by uSwitch, suggesting that as recession looms, consumers are switching from the High Street to the internet -
“High street retailers saw a 3.9 per cent fall in June sales, the sharpest monthly decline since records began, while online sales increased to a record £26.5 billion in the first half of 2008…
Steve Weller, communications expert at uSwitch.com, said: “With less spending money than ever, higher petrol prices and busier lifestyles, it makes perfect sense for consumers to turn to the internet to fulfill their shopping needs.”…
Britain is leading the way in Europe when it comes to online shopping, uSwitch said, with total UK online sales in 2007 nearly 40 per cent higher than closest rival Germany, as well as France, Italy and Spain.”
Obviously, most salons don’t have services that they can sell directly online, though some salons sell retail products from their salon website, and others offer online appointment-booking. But it is likely that if your potential customers are spending more time shopping online, they are also more likely to search for hair and beauty salon services on the internet.
“Despite economy, internet ad spending projected to double”
At the same time, US company WebVisible quotes a report from research firm IDC, showing that while other types of advertising are decreasing, internet advertising is growing rapidly -
“Total online ad revenue in the U.S. reached $7.1 billion in the first quarter. A 23.9% increase over the same period last year, IDC forecasts that over the next five years, U.S. Internet ad spending will more than double, despite the current economy.
While the threat of a recession will decrease ad spending across all media by as much as 7% this year, online advertising will continue to grow at rates between 15% and 20% a quarter, according to the news report “U.S. Media Quarterly Wrap-up 1Q08″.
“Effectively, the crisis accelerates the shift of advertising budgets from traditional media into new media,” explains Karsten Weide, program director of digital marketplace and new media at IDC.”
Generally, trends like these in the USA are followed about 6 months later in the UK. So if the “big guns” of the advertising world are switching their marketing budget more towards the internet, perhaps you should be investigating the possibilities for your salon marketing plan?
We will be writing more articles about using the internet to advertise your salon or spa in the coming weeks (from salon websites, to search engine optimisation, to reputation management, to free advertising directories… and much more). If you want to keep informed about the latest information and news on our website, please enter your name and email address in the form at the top-right of the page, and we will send you updates by email.
Update : Stuart Tofts at SEOptimise.com points out an even more recent report from IMRG, that shows that online spending in July rose again. He comments -
“What really interested me this month, though, was a comment made by Mike Petevinos, Head of Consulting for Retail at Capgemini UK. He explained growth is rapid, even within the current gloomy economic climate. One reason he gave was “the increased choice, price transparency and convenience that online has to offer”.
It is this choice, ease and transparency which have made the web such a successful place to operate from. However, it doesn’t matter how many consumers are using the internet to shop - if a company cannot be found then it cannot compete. Visibility is hugely important.”
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