The economic downturn… or “I thought I’d stop by and actually blog a little!”

Posted by Martin Jamieson | December 9, 2008 .

Photo by stuartpilbrow Ok, it’s been awhile since I’ve posted here… way too long - chained to my desk all week and letting World of Warcraft soak up all my free time really doesn’t do much for a blogging schedule.

In case you haven’t noticed… we’re in a recession / depression / hold onto your cash and lock your door phase at the moment and most parts of the world will likely remain there for the next year or two at least. Hopefully you haven’t been affected too harshly and can ride out the storm safely, but many industries are facing some very troubled times and significant layoff’s are well under way. The IT Industry is definitely feeling some pain and this will no doubt have implications for the blogsphere.

On a positive note, there should be an explosion of new blogs starting up… it has never been easier to start a blog and as the unemployment queues get longer, some very passionate people with a lot on their minds will turn to blogging (at least in some way) to either vent their frustrations or try to make a new start. While this will generate a ton of blogs that don’t last more than a month or two, there will also be a number of gems that rise to the surface… more choice for the reader is always a good thing, so long as you can find your way to the ones that matter.

But troubled economic times usually trigger a downturn in advertising revenue as businesses cut back on everything they can. Even though marketing campaigns have the goal of making money, the reality is that consumers are spending less and margins are lower. Extravagant branding campaigns that might pay off over time are a lot riskier to undertake and those direct marketers who track every sale made and penny spent will find it hard to generate the returns they’re used to. Given that most high profile blogs rely heavily on advertising dollars, that could cause a few problems, especially with some of the smaller blog networks that work on a revenue share model with their bloggers or pay regular employment costs.

The additional competition, along with reduced advertising revenues will hit some blogs particularly hard - and I’ve got no doubt we’ll see a few ripples go through sites that have paid bloggers on their staff. Fortunately, the costs involved with blogging are extremely low. If you’re blogging for fun and not profit, then you’ll hardly notice any difference - you’ll still get visitors, they’ll still comment on your posts and you’ll still have all the time you need to blog… but if making money is your aim, be prepared for some lean times ahead, especially if your new to blogging.

Concentrate on building your traffic, increase the quality of your posts and build a strong community with your readers… the best blogs will not only survive, but they’ll be the ones to thrive when the economy picks up again.