Money Slows Conversation Continues

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Money Slows, Conversation Continues

By: James Cherkoff
2008-03-21

As an economics graduate I can tell you that the dorky definition of a recession is when the exchange of cash between people slows.

Same amount of money, just slower circulation. And as the money starts to drag, one of the first traditional victims is media spend. We are probably in a lag at the moment because good times budgets money are still in the system. But be in no doubt, the bad news is in the post. However, networked media is unlikely to be hit by the recessionary effect in the same way that traditional media is, because - well it isn't really media. It's people-powered chat, not cash-fuelled inventory. Yes, along with fags and booze the usage of networked media isn't related to prosperity. People carry on chatting through good times and bad. In fact, the old Linux quote ("It's only free if you put no value on your time,") may mean that recession increases the use of networked media. After all, one thing everyone has more of in a recession is time. Personally, having been through a couple before, I think recessions are quite healthy at showing us what is really working and what was always a punt. As Warren Buffet says: "It's only when the tide's going out that you find out who's been swimming naked."

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About the Author:
James Cherkoff is a Director of Collaborate Marketing, a consultancy in London which helps companies in Europe and the US operate in networked media environments. He is editor of the blog Modern Marketing and contributes articles to the FT, BBC, Independent, and the Guardian. James speaks at conferences and events around Europe and the US, including MIT MediaLab and Reboot in Denmark. You can here him here. When he isn't knee deep in the blog-world he is likely to be discussing Arsenal FC or playing peek-a-boo.


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