The financial crisis is showing its first signs of hitting the communication industries, as evidenced by this article in the Wall Street Journal this morning.

“In recent years, marketers have set aside a portion of their ad budgets to experiment with digital technologies such as Web video, mobile phones, gaming and virtual worlds. But with broader economic turmoil reaching Madison Avenue, these “experimental” budgets are among the first to hit the cutting-room floor.”

It goes on to say that most companies are going to go back to traditional and tried and true advertising.

This is the start of a new trend that won’t change for a couple of years.  As companies cut their spending on advertising in this area, they will look for ways to maintain visibility.

We already know social media works through PR to build awareness, credibility, and communities.  We already have experience using this strategy to reach audiences at a grassroots level.  We can capitalize on this trend and keep companies in the space without their having to advertise…and we can do it a lot more cost-efficiently for them.

Our apologies to our advertising counterparts, but it’s time for PR to take the lion share of the communication budgets.

Gini Dietrich

Gini Dietrich is the founder, CEO, and author of Spin Sucks, host of the Spin Sucks podcast, and author of Spin Sucks (the book). She is the creator of the PESO Model and has crafted a certification for it in partnership with Syracuse University. She has run and grown an agency for the past 15 years. She is co-author of Marketing in the Round, co-host of Inside PR, and co-host of The Agency Leadership podcast.

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