It would appear that there are very few businesses and industries that have not seen a negative impact as a result of the global recession that economies are facing today. In the UK alone unemployment has risen by 1.5 year on year to Feb 2009 with an increase of nearly half a million people out of work.



According to Equifax, a global leader in consumer and commercial data, the number of businesses that went into administration in the last quarter of 2008 was 24% higher than the previous quarter. This information will not come as a great surprise to the people of Warwick and Warwickshire where the effect of the economic downturn has been apparent in certain business and industry sectors.

The automotive industry for example, has taken its fair share of knocks around Warwickshire and the midlands over recent years, most notably the decline of the MG Rover company which went into administration in 2005 and Jaguar and Land Rover which were bought out by Ford after falling sales.

Since November 2008 Jaguar LandRover have made 1300 job cuts across their plants in merseyside and the midlands and more recently staff at the plants have agreed on a cut in working hours to avoid further redundancies.

The county town of Warwick itself however, is a very popular tourist destination with attractions such as Warwick Castle and Stratford-upon-Avon, Shakespeare's birthplace, just around the corner. This attracts not only UK visitors but also those from abroad, particularly America. To this end, the effects of the recession have been less noticeable in Warwick since more people in the UK are looking to spend their holidays at home rather than travel abroad. Another factor is that in recent months, the value of the pound has decreased considerably against the dollar which means that the UK has become a more affordable holiday destination for many Americans.

In a recession, when companies are struggling financially, often the first thing that they will do is to cut their advertising budget. This is probably the biggest mistake to make since advertising actually becomes more essential to the survival of most types of business in an economic downturn.

There are many different media that a firm can choose to advertise their product or service one of which is online advertising. Due to the increasing number of internet users, online advertising has become more and more popular in recent years and can actually be one of the most cost effective methods for a company to reach its target market.

There is however still some scepticism surrounding advertising on the internet, often due to a lack of knowledge on the subject but recent studies into it's effectiveness have shown that online advertising is now at least as important as offline advertising ever has been.

Businesses must now look towards harnessing the power of online advertising either instead of, or in conjunction with traditional media if they are to ensure their survival in these difficult times. This will also help to keep the company's product or service fresh in consumers mind during a recession even while demand is low, and to lay a solid foundation for companies to grow when the economy picks up.