Way back in 2008 before there was an “official” recession, our agency noted a significant pull back from our clients in terms of media spends and initiatives.
Then along came the paralyzing slump of 2009 that killed off many independent ad shops, printers, and media agencies despite the so-called “stimulus”.
2010 however saw everyone climbing into and clinging onto the “social media lifeboat” for all they we worth. And thankfully we survived.
So what will happen in 2011?
Prognostication, unless you’re a ground hog can be a tricky past time, but I’m willing to stick my neck out. From what I’m foreseeing now, here’s how it looks:
• Unemployment will continue to hover around 10%
• Housing starts will continue to wallow in the pits
• Oil will continue to climb and yes, this will put at gas at around $4.50 this summer, as it always magically does between Memorial Day and Labor Day. Go figure.
• Retail sales will remain flat
So there you have it. Another bleak outlook for yet another challenging year. But now for the good news. (There always is a silver lining you know!)
• As people get adjusted their new “Normal” personal economies, new services and products based upon value and making a connection with the consumer will skyrocket. You’re already seeing this happen. Just yesterday I saw a commercial where H & R Block is offering free simple tax return preparing in an attempt to lure a new base of customers based on value. Of course, there will be an up sell once they get they in the door, but hey… they’re there!
• More social media applications will flood the market making it even easier for brands to monetize their social media efforts, and for fans to “like” them.
• People who have been putting off larger purchases such as cars, computers and appliances will buy this year. Not because they want to, but because they can’t put it off any longer. Heck. It’s been almost 3 years since last they’ve had a technology upgrade, and that family wagon is going on 7 years or more.
• People are going to stop waiting for the government to pull them out of the malaise because they can see the stimulus plans have done nothing but stimulate the government.
• The unemployed are going to look for ANY work, not just work they want.
• Businesses are going to find ways to survive despite all the new mandates and regulations, and that means forcing innovation and supplying products people want versus cutting back (which they can’t do anyway).
2011 will be a year for people and business to adjust to the downsize, and come to the realization that America has a far way to go to get back to the heady days before the bubbles burst.
2011 is the Year of Acceptance. Let’s move forward in confidence knowing that we’ve woken up, we’re going back to basics, and we’re up for restructuring and rebuilding our lives, our businesses and our country, one positive step after another. It’s going to take patience, work, and determination. I’m up for the challenge. Are you?
Author: Timo Matero, CEO, The Accelerator Companies