Effects of the Recession and Online Advertising in Derby and Surrounding Areas

Like most cities, Derby has been impacted by theholiday company based in Derby - Don Arnott
recession in one way or another. Usually a cityParks - reported an increase of nearly 50% in its
with a high level of employment, Derby's workingEaster trade over last year with all five of it's
population has decreased significantly over thecaravan and camping parks full.
past year or so as a result of the economicIrrespective of whether or not a company is
downturn. Figures for the end of march showseeing adverse effects from the credit-crunch,
that the number of people out of work has risenone thing that they must continue to do is
82% year on year in Derby to 7,235 and foradvertise their business, product or service. A
Derbyshire as a whole it is a similar story withcommon mistake made by companies who are
17,403 people claiming unemployment benefitfeeling the pinch is to cut their advertising spend
compared to 8,253 the same time last year.when in fact they should be increasing or at least
Traditionally, manufacturing has been the integralmaintaining it to help ensure their survival in
part of the city's economy, particularly in thetougher times.
areas of aerospace, chinaware production andThere are many media that can be used to
train building, with some of Derby's most notableadvertise a business but one of those that
firms being Roll Royce, Toyota, Delta Rail andsometimes gets overlooked is online advertising.
Royal Crown Derby Porcelain Co Ltd. This sectorWhether it is a lack of knowledge or a fear of
has been one of the hardest hit with Rolls Roycetechnology, many companies have tended to stick
having shed 140 jobs and Toyota, it is rumoured,to more traditional media such as newspapers,
could be making as many as 800 redundanciesTV and radio. However recent studies into online
across its sites in Wales and Derby. The situationadvertising show that it is actually a very
has been even worse for some companies suchpowerful tool in reaching a company's target
as the iconic Wedgewood who have foldedaudience and since it is still relatively cheap, also a
completely as a result of the crunch.very cost effective one. Websites such as will list
It's not all doom and gloom though - in recentyour business in it's directory for free and, for a
years the industry trend has shifted a lot towardsminimal outlay will give you featured listings and
the service sector which now is responsible forhomepage exposure for your product or service.
over 60% of all employment in Derbyshire. MuchSince it is part of a much larger network of local
of this can be attributed to the tourist industrywebsites, the exposure that a company can
and the attraction of the Peak district, whichreceive is increased greatly. Compare this to the
although has always been there, has been muchcost and circulation of, for example, an advert in
more heavily publicised by various organisationsa local newspaper and it soon becomes clear why
including the tourist board. This in turn has seeninternet advertising is becoming so important. In
the emergence and increased popularity of hotels,fact a recent study into the effectiveness of
restaurants, and campsites in the region.online advertising concluded that it is at least
The service sector, and in particular the touristimportant as offline advertising always has been.
industry has seen less of a negative effect fromThe bottom line is that if companies want to give
the recession than the manufacturing sector inthemselves every chance of survival in this
Derby. Much of this is due to the fact that sincedifficult economic climate, they can't afford to
the economic downturn many Britons are electingignore the internet as an integral part of their
to stay at home and holiday in this countrymarketing strategy.
instead of flying off abroad. In fact one particular