With seemingly nothing but more doom and gloom on the economic horizon, it’s always encouraging to read tales of businesses that have seized upon the opportunities presented by the difficult economic climate and successfully turned things to their advantage.

In the latest article to appear in our online library, David Baggaley shares with us some inspiring tales of nimble-footed and entrepreneurial organizations in The Growth Opportunity.

Return on investment – or ROI – has taken on increasing importance over the last few years. The recession, in particular, has forced marketing departments – among others – to monitor and measure the success of their marketing spend, sometimes relying on ROI to justify their outlay.

However, a new study by Omniture has found that more than half (55%) of marketers claim they cannot effectively measure their marketing ROI. The online survey, conducted between January and April this year, sought the views of more than 600 marketers.

The survey found that, while 69% are using social media for marketing purposes, 41% of those do not have a way to measure social media conversion. A further 43% of marketers said that online videos formed part of their strategy, but more than two-thirds (70%) were also unable to measure post-video conversion.

Why not read our white paper on Measuring and Maximising the Return on Investment of Market Research? – click here to read it.

Everybody knows that 2009 was a tough year, with marketing budgets in particular feeling the strain. Yet things are looking more promising for 2010 already – and on both sides of the Atlantic!

A survey conducted at the end of 2010 in the United States showed good news for marketers after a year in which 60% of b-to-b marketers slashed their budgets. BtoB’s “2010 Outlook: Marketing Priorities and Plans” report, based on an online survey of 376 B2B marketers, found that although almost half plan to maintain their existing budgets, nearly 40% will increase spending in 2010. Just 13% will be reducing their marketing spend this year.

As with last year, online marketing – including website development, e-mail marketing, search, social media, online video and webcasts – looks set to see the biggest boosts. This medium is widely acknowledged as being both cost-effective and measurable. Spending on innovative direct marketing and customer events both look set to rise also. More about this report can be found here.

Meanwhile, in the UK, the latest IPA/BDO Bellwether report indicates that optimism and confidence are growing. In spite of the report showing a ninth consecutive quarter of declining marketing spend, the rate of decline is clearly slowing. Spend is down only 7% compared to 15% in the previous quarter.

Indeed, marketing budgets for 2010 have been set higher than those in 2009 and, with 35% of businesses surveyed seeing improved prospects, companies are the most optimistic they have been for the past five years.

As with the trends seen in the US, online advertising budgets were revised upwards for the second quarter running while direct marketing budgets have also increased (by 2.2%) for the first time since 2007.

Why not read our white paper, Marketing Strategies in a Recession?

Following Monday’s blog entry we can report that recent market research by B2B International shows that London’s entrepreneurs are more optimistic for 2010

London’s small businesses report that the recession is now having less of an impact on their business and levels of optimism and resilience remain high after the final quarter of the year, according to Business Link in London’s latest Business Confidence Index carried out by B2B International.

Although 69% of entrepreneurs tell us they are still affected by the recession, the impact is less significant – only 13% reporting they are extremely affected. This is a significant drop from 21% in July 2009.

The quarterly business confidence Index measures business sentiment of over 3,300 small-to-medium sized enterprises (SMEs).

This unique survey takes into account variations such as industry sector, sub-regional location, business types and business ownership (gender, Black, Asian & Minority Ethnic (BAME), Deaf and disabled).

Commenting on the Index, Patrick Elliott, Chief Executive of Business Link in London said: “Small businesses have always been resilient during times of economic upheaval due to their ability to adapt quickly. This flexibility, combined with their survival strategies and optimism, are likely to have shielded some businesses from the full force of the recession.”

Mayor of London, Boris Johnson, added: “For the second week running another survey shows London’s small businesses can see light at the end of the tunnel. We have been working hard on their behalf and it is rewarding to see this sustained growth in confidence and to hear that, as we start turning the corner, our businesses are optimistic for the future.”

Mr Elliott continued: “However, entrepreneurs are not yet immune to the continuing tough economic climate. A note of caution is necessary to manage the months ahead.”

Reduced customer spending and sales generation are still key problems faced by established businesses. However, their impact on businesses has dropped significantly with only 20% concerned with customer spend in October, compared to 36% in July.

The food and drink sector is fairing better than it was in July due to increased customer spend. However, we are seeing a gloomier picture for the retail sector as customers cut back on purchases.

Declining profits and sales and cashflow constraints top the list of business activities hardest hit by the recession.

More home businesses are optimistic than ever before. They are telling us that they are marginally less affected by the recession than other business types (42% vs. 44%) and that they’re inclined to be slightly more optimistic about their overall future (17% vs. 14%).

Growth and optimism remain high on the agenda for the majority of those surveyed. The number of businesses looking to grow has increased from over half (59%) in February, to 63% in October. Levels of optimism remain unchanged since July (73% vs. 75%) with almost three quarters of those surveyed continuing to be optimistic about their overall business success.

“This cautious optimism is exactly what we advocate. The Index shows that entrepreneurs are refusing to get bogged down in the doom and gloom. Their strategies to tackle the worst impact of the recession are paying dividends,” continued Mr Elliott.

Online sales and trading have emerged as popular choices for growth over the next twelve months, making their way into the top 5 strategies considered. Despite this, increased marketing remains the top tactic favoured by businesses.

The manufacturing and property sectors are least likely to grow which suggests that they are simply concentrating on survival.

Two in five respondents are not planning on making further changes to their business to deal with the recession, an increase of 16% since July (40% vs. 24%). This is further evidence that businesses feel closer to recovery.

If you are a London based business and interested in taking part in the next quarterly Business Confidence Index then please e-mail: dbci@b2binternational.com