David Behan's Web Design Ireland Blog

The Internet is Good for a Recession

It’s no secret that we’re now in a recession and most industries across the country and the world are feeling the effects. In talking to a number of other web professionals and from my own experiences, I believe that the Interent is good for consumers and businesses alike, thus being good for our industry. Let me explain a bit more and maybe make more sense.

The Internet for Consumers in the Recession

With everyone needing to become a lot more conscious of their spending habits and how much they are spending, more and more people with be researching and even making their purchases online, looking for better deals. Hence, I believe that although we are in a recession, there may be a shift of spending from traditional sales channels over to the online sales channel. During the boom times in Ireland, we didn’t really care what we were spending on items because there was always more cash coming our way (I’m generalising here but not always the case). I’m constantly reminded that I don’t know what it is like to live in Ireland during a recession and it’s a different mind set. The last recession in Ireland was in the 80’s and I was too young then to notice. With the Internet available to all in this ecomonic cycle, I wonder how much it will influence people in their buying habits. Spending figures may go down but I think the percentage of spending online will go up.

The Internet for Businesses in the Recession

So, it’s no longer the spending frenzy that as it has been in years gone by and I’ve found that a lot of businesses that previously didn’t need to do much marketing for the business to sustain their size and also grow, are now looking at new ways of bringing in the business. A recession pushes businesses to get back to basics and focus on sales and marketing to keep their businesses alive. This is where the Internet comes in to play. Utilising a business website to help market your business and generate sales leads or indeed direct sales can be a cost effective approach compared to traditional sales and marketing methods. Take a one day full page ad in one of the national papers that can easily cost upwards of €10,000 but it only lasts a day. By putting €10,000 towards your website, you’re looking at a sales and marketing tool that can last at least 2 years. Any subsequent traditional advertising can be directed to your website to pick up where they leave off, and generate those must needed sales leads. If you haven’t embraced a website for your business or your current site is looking a bit dated, now is definitely the time to look at how a strong web presence can benefit your business in these difficult times.

The Effect on the Industry

Both of the above lead to one thing for our industry, we are definitely getting busier. I’ve talked to a number of other professionals in the industry and nobody seems to be feeling the effects of the recession just yet. Everyone is saying the same thing – they are busier than ever. Will this last? I’m not sure but if businesses all come to realise the strengths a good website can have for their business during a recession, our industry will continue to grow. We’re working with lots of new clients on their new approach to online business as well as upgrading existing clients with new techniques to improve their presence. We would definitely recommend companies that need a new sales and marketing strategy in this unsure time to look into this further and contact one of the many companies out there that can provide a good service. Finding the right company can be difficult though so in addition to ourselves, I’d like to recommend a few web companies and individuals off the top of my head, that I know in the industry and believe they can do a great job:

  • Ken Stanley – Standards guru with a good team around him for some exceptional work
  • Contrast – They mainly build web apps but also design some very unique websites
  • Sabrina Dent – Designs some great looking websites that have also achieved some great success
  • Spoilt Child – Probably one of the best design companies in the country with an excellent portfolio
  • Click Stream – Have a wide array of clients and producing some very good work
  • Red Fly Marketing – For when you need to market your website in the online world

Do you need some advice?

We love talking to businesses and offering any advice we possibly can. Feel free to call me directly on 046 – 9072998 for a chat or email me at info [at] davidbehan.com.

10 Comments (post a comment)

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Michele  spacer

David

It makes sense for both business and consumers to take more activity online. Maybe the recession will provide the impetus for more of the “bricks and mortar” companies to really embrace the online realm.
I imagine more and more people will be using price comparison sites and getting bargains on eBay if the local vendors don’t get more competitive

Michele

October 12, 2008 @ 9:18 pm

@Michele it’ll be interesting to see how businesses react to a purchasing channel switch if it is dramatic enough

October 13, 2008 @ 8:55 am

Hi, I agree with your recession comments, people and businesses are coming back down to earth and going back to do what they do best with less wastage. Think it’ll be boom time for us freelancers out there who’ll get more jobs because companies are reticent to take on staff.

October 13, 2008 @ 9:12 pm

[...] Behan has a good post about the Internet being good for recession [...]

October 14, 2008 @ 4:11 am

[...] force those in business to think and work harder. David Behan has noted why the internet is good for a recession as well, from a sales and marketing perspective. There is no more room for crazy ideas that *might* [...]

October 15, 2008 @ 8:39 am
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Michael  spacer

Great post! I agree.

October 16, 2008 @ 10:11 am

I think you are on to something, our sales channel is almost 100% internet driven and we are seeing many more enquiries recently as people are shopping around for value and looking into their finances more.

I think the only down side is that (in the finance industry) some bigger competitors can keep paying for ads and that dilutes the message of organic sites – which is what we have been working on for some time – having said that, organic results are free and that’s great during a recession when advertising is one of the first things companies cut into.

October 30, 2008 @ 2:12 pm

Following on from our discussion a few weeks ago, here is a post covering the word on the street or from the Big Debate last week. Happy days indeed.

November 25, 2008 @ 12:12 pm

[...] During the middle of last year with the credit crunch in full swing the effect on web designers was arguably neglible, indeed most web designers and design agencies were busier than ever. [...]

January 16, 2009 @ 3:41 pm

As Michael said above the recession is effecting web designers, we have seen at least 30 clients hit the wall in the past 4 months, we have let over 60 domains go and are in the process of selling some .com’s too,

But saying that we have been taking on new clients each week for the past 3 weeks so it’s not all doom and gloom but rather just stricter credit terms and cash flow.

January 22, 2009 @ 10:22 am

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