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The internet can help during a recession. EnCirca recommends increasing advertising

( Boston-USA - Like many of you, I am spending the first few weeks of the New Year assessing how EnCirca should react to the expected downturn in the economy. It may come as a surprise to many, that you should increase advertising during a recession– and, Internet-based advertising provides the best return of your marketing budget than all of the other options.

Over the last 100 years there have been 20 recessions - ten since World War II. Consensus would indicate that we are soon entering a new one. Studies show that when the economy enters a recession, 75% of companies respond by cutting back, hunkering down, and trying to “tough it out".

Advertising is an easy expense to eliminate. Big mistake! Research shows that companies should increase advertising during periods of economic slowdown. The idea is that competitors will spend less and, so, the company that continues to advertise will come out of the economic downturn with better name recognition and a better customer base.

Companies buy multiple domain names for advertising and brand-building purposes. Internet marketing using these names is expected to increase during a recession since they are more cost-effective than more traditional forms of advertising and marketing, such as newspaper and TV ads, trade shows and other labor-intensive marketing campaigns.

In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that business-to-business firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising.

At least a dozen other studies of recessions from 1923 through 1991 show nearly identical results: those firms that kept advertising aggressively increased profits as well as gross sales during the recession.

It's important to remember that during a recession consumers don’t stop buying. While they become more selective, they are still going to buy from someone. They are more likely to buy from businesses that they know and like.

The more visible you are, the more confidant your customers and prospects become. The more they are reminded of your legitimacy and staying power, the more they'll be inclined to believe you'll be there for them tomorrow.

With internet advertising becoming a cheaper and easy option for companies, it is no wonder that during tough economic times these options will be exercised more frequently. The general public is shifting towards obtaining their information exclusively from the World Wide Web. With this in mind, companies will be focusing the majority of their ad campaign on the internet, which correlates to the drop in ad revenue for the likes of newspaper and television companies.

Utilizing multiple domain names for your business enables more sophisticated marketing techniques, such as customer segmentation and search engine marketing. 2008 will be a great time to start utilizing your domain name assets to help improve your bottom line.

About EnCirca
EnCirca is an ICANN-Accredited domain name Registrar serving the travel and tourism industry with support for all of the generic top-level extensions: from .com, .net and .org to .travel, .mobi and .asia.
For more information, visit

PR Contacts: Kate Kalmakis +1.7819429975

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