Most business news emphasizes revenues stalling or declining and then concludes that the business is in a difficult situation. While cumulated numbers make sense to understand the state of the economy, we should only look at comparative numbers for a business: the only thing that is important is how you fare compared to your competitors. For example, Google drop of 3% in Q1 quarterly revenues does not imply the company is badly it hit by the economic situation: Google is actually getting stronger as its market share is improving in an online advertising market that declined by 10% : Google is indeed not immune to the overall slump but it is actually benefitting from it.
The same reasoning could apply to the social media market. Many thought the economic conditions would badly impact it but it is quite the contrary : marketing budgets may have been slashed but as brands and companies rediscover the power of engaging their audience and clients, the part allocated to social media is actually increasing. As Read Write Web reported a few weeks ago a Forrester Research survey by the insightful Jeremiah Owyang indicates that more than 50% of B2B and B2C businesses intend to spend more money on social media. In other words, the share of budget devoted to social media is actually increasing in 2009.
That is good news for the industry in general and Webjam in particular and explains why we keep signing new clients, including some of the biggest brands to be announced soon. In the meantime, check out some of the newest networks built on Webjam :
. raising money by playing cricket on the Everest on “the Everest Test”
. getting entrepreneurs to share thoughts and risks with the “Founders Club”
. fostering entrepreneurship around the globe with “Make your Mark”