UK Recession Good For SEO Companies?
While we are all feeling the very unsettling effects of the credit crunch, financial analysts are predicting that the UK will enter economic recession within the next few months.
The definition of economic recession is for there to be negative or zero growth in GDP (Gross Domestic Product), so basically job losses (because of falling orders), cutbacks on expenditure and an increase of cost savings measures throughout struggling companies.
Whilst we are not suggesting for one second that a UK recession is a good thing, it may be good for SEO companies. Here’s why…
Every mainstream company owner will tell you that there are three ways to increase profit:
- Increase the number of customers
- Increase the margin on products being sold
- Increase the frequency that a product is re-purchased
Let’s take the first of these points, increasing the number of customers. Traditionally all companies have used a mixture of marketing techniques, ranging from the very expensive (TV, Radio, newspaper / magazine advertising) to the inexpensive (leaflet drops, direct mailings). Add to this mix over recent years the meteoric rise of web and email advertising, and you have a range of advertising mediums that can cover all budgets. Is it that simple though? Well no…
Because worldwide trends especially over the past five years or so suggest that more and more people are buying their purchases online instead of through high street stores and businesses, SEO has become more and more cost effective, so not only can a good SEO company increase the number of customers coming to a business trading online to buy products, it can also mean that the return on investment for SEO is becoming huge, so point two in our list is also covered, as lower advertising costs affect profitability of products sold.
Don’t forget, advertising is only any good if you do it continually, so if you have those very expensive newspaper or magazine ads (or even worse TV ads) then you are looking at tens if not hundreds of thousands a year in advertising costs, yet a good SEO company can be had for your website for far less… and as a website can be viewed 24/7/365 worldwide, it really is worth paying a good SEO company to make sure that people come to your website via search engines as there is a potentially HUGE market for products out there, ready to purchase and (point three of the list) re-purchase!
So will a UK recession be good for SEO companies? Well like I said, we are not suggesting that a recession would be a good thing, but it may shake up what companies think of as their main advertising stream, given the costs of SEO compared to traditional advertising mediums, which for the SEO Industry can only be a good thing.
