An internal email reveals that Google is cutting up to 50% of its marketing budget in the second half of 2020 due to the economic shift caused by the COVID-19 pandemic.
The email, viewed by CNBC, says:
“There are budget cuts and hiring freezes happening across marketing and across Google… We, along with the rest of marketing, have been asked to cut our budget by about half for H2.”
The email went out to marketing employees last week, stating a new hiring freeze for both full-time and contract employees.
CNBC says “a company spokesperson confirmed that some areas’ budgets are being cut by as much as half, [adding] that others may not since it is still in the process of “recalibrating”.”
Confirmed in a note to employees from Google CEO Sundar Pichai, Google is “re-evaluating” their marketing efforts.
The memo compares the current economic situation the 2008 financial crises, sharing the clear lesson learned from that period was “preparing early is key to weathering the storm and emerging in a position to continue long-term growth, as we have done over the past decade.”
Read full memo here.
What Google is Doing InsteadThere is no doubt that such large cuts will impact Google and Alphabet, at every level.
But what is interesting in this move, is that Google is shifting its focus from outbound marketing towards “investments in areas like data centers and machines”.
This is very similar to a similar move that REW CEO Morgan Carey announced on January 1st, 2020.
The key for both companies is re-investing in areas that can help both the company, and it’s customers (or shareholders in Google’s case). The key is focusing on long-term growth.
What Real Estate Companies Can LearnEverywhere you look you are seeing phrase variances of "in these uncertain times".
As humans, we don’t like uncertainty. It makes us uncomfortable. We crave consistency, and the pandemic is shaking the very foundation that holds us together as a community.
So what can businesses do, specifically real estate businesses?
Reshape what consistency looks like for your clients and your market—focus on long-term growth.
If that means shifting some of your marketing dollars to invest in your business, like upgrading your tech, then do it.
Whatever you need to do to ensure that your real estate business is there through these times (and to the other side of this), you need to do it.
“Now, more than ever, it is the time for your real estate business to be an innovator in your market.”
What it doesn’t mean is that you hide, hoping that this will blow over. Because this “new normal” will be here for the foreseeable future, and the need for long-term growth is the only consistency that it will provide.
REALTORS You Should Be FollowingREALTORS are a resilient bunch.
We see this every day, in every transaction with our clients. You are strong, innovative, and ready to fight for your companies and your clients.
You are essential.
There are so many agents and brokers out there who are taking the bull by the horns, and focusing on long-term growth instead of retreating.
Here are just a couple of shining examples of REALTORS who are embracing long-term growth:
Who do you follow that is investing in long-term growth?