Here is the content marketing trends, before we going to content marketing trends we need to know basic things.
What is Content Marketing?
If you’re new to this, let me acquaint you with what content marketing actually is. This is a no-brainer. The title itself suggests the complete idea. Hold your horses! Do not get deceived by the simple idea it connotes. There’s a lot more to it than that meets the eye.
How Content Marketing builds your Business?
Content marketing is merely a way of writing blogs with the purpose of attracting more traffic. This traffic eventually goes ahead and attracts the prospects that are essential for building your business. These prospects are the ones that you might be doing business with. Thus, in short, content writing is a way to build your brand and grow your business.
How Content Marketing helps SEO?
Content Writing. How?
We will take you through…
SEO is nothing but helping your website crawl better on the Google SERPs (Search Engine Result Pages). Initially, you need to write as relevant a content as possible. Understand what the users would usually search for in your particular domain. Write your content in accordance with your keywords and Voila! You’re good to go.
Google will start considering all those keywords and display your page on the SERPs. This leads to a number of clicks to your web page. So that’s how it helps your SEO. For the content marketing tips, do read this article on content marketing tips and tricks.
Why is Content Marketing important for Business?
Content marketing is said to have attracted about 160% of businesses more than the websites that don’t encourage content writing. If you don’t showcase your own expertise, then how will the external parties know of your existence? Similar is the case with the content writing. Content writing is a technique where you show off your skills and expertise in that particular area, that finally leads to the prospects – creating your brand. When you appear constantly on the SERPs, when the prospects search for the same, it definitely grabs their attention. When these prospects are interested enough in the way you do business, they’d be willing to team up with you. That’s how most of the prospects are earned online.
If you’re still not convinced, do go through this article.
What are the Content Marketing Channels?
Once you finish with your content, the next and the foremost step is to promote it on a large scale. This promotion is helpful as then, it would reach a large number of prospects who are looking for services like yours. Do register yourself in the channels mentioned below:
Social Media:
What’s the purpose of all those hours of writing when it doesn’t reach the expected audience? What better location could you find to publicize your article than your very own social media? We know out of all the communities, social media has the highest outreach. Do share your articles on the social media platforms to garner a number of audiences. In order to understand how you can leverage social media for your content marketing, do read this article on social media promotions.
Similar Field Communities:
There are a number of communities that are in relevance to your field of expertise. No matter what field you are in, you can always find your own communities. These communities help increase the relevance of your posts.
Guest Blogging:
Guest blogging is yet another way of expanding your business in a short time. Find the website with a better domain authority (DA) than yours and start guest blogging. This will lead the traffic from their website to visit yours and eventually, you’ll see a great increase in your traffic.
Email Campaigns:
Encourage the viewers to give out their emails in an interactive way to be able to send them more of these. Keep them updated, keep those blogs coming one after the other. Make it interesting to watch. Not everyone is interested in sharing out their personal information, so make them give it out to you by themselves. Such should be your strategy.
YouTube:
Make videos, make them interesting, publish them on YouTube, give out your link. This will eventually gather a huge amount of traffic. Keep interlinking from one media to the other to get a huge flow of traffic.
Out of all these, there’s one important thing that you can never fail to follow. Always get yourself updated with all the new trends in the field.
Here are a few more low key channels you can visit.
What are the content marketing trends for 2018?
1. Content Remarketing:
If you can invest something on this, then you need to go with this. Content marketing is the way in which you can display the same content that your users were not able to finish. So, the people would have the option to come back and finish the whole article again. This is called content remarketing. This helps the visitors leaving your website to revisit.
2. Podcasts and Embedding Videos:
The latest trend these days that has been taking over the regular blogging is the Podcasts. These podcasts are highly essential for all those people who are busy to read through things. Podcasts help in reading out the whole article that is written in words. This helps the reader to multitask while listening to the same content that he/she has to read.
Embedding videos from YouTube or various other channels helps in easy understanding. This ease of learning attracts a number of people towards your blog. Not just that, one of the ranking factor, duration of a visitor in your website, increases by a great amount, when you successfully make them stick to these videos.
3. Funny and Humorous:
Being funny has always attracted a number of customers. I know I’m not as funny but yeah, I don’t recommend you to be that way. Don’t go hurting people on your quest for being funny. A good laugh always kills off the pressure that you take all day! Hence, be funny for yours and your viewers’ sake!
4. Promotion, Promotion and Promotion:
Keep promoting yourself finding new channels. I can only suggest a handful of these, but you need to find your own communities or locations to promote based upon your field. So, just go ahead and find your niche communities to be able to spread your content across the web.
5. Ambience:
These days people are all about ambience. Would you walk into a restaurant with a bad ambience even though it offers great food? That’s the effect even a website ambience has over the viewers. These days every other website is developing its pages, such that they are more interactive than ever. So, do concentrate on your website’s interactiveness, such the viewers remember the next time they visit your blog.
6. Voice Search:
The next big thing that everyone is aware of! Voice search is the next big thing in the technological advances running around. We can say with surety that this will take over the regular search by a great extent. That’s the kind of predictions the experts have for this. So whenever you write some content, do keep the questions asked as per the perspective of the voice search. This might not be completely essential on this day, but in the future, it’s going to help your viewers a lot with their search.
There are certain trends that never go out of date. The ones that are listed below are few of those. Never ever even think of neglecting all these factors.
8. Trial and Error:
This is a method that works the best. This needs a lot of patience, but mark my words, this will help you in the long run. Learning from mistakes is the best way to learn anything. The same is the case with this one as well. Keep trying for different techniques and implement them on your website. Some might even give you unexpected results. That’s how you learn to grow your traffic and prospects altogether.
9. Content Repurposing:
You update your blog day after day coming with all the new updates. Have you ever thought what happens to your older blogs? You must have thought about it, but have you really acted upon it? Well, you should. Your older contents are as important as the newer ones. The older content, once they are outdated, are supposed to be looked upon. These updates lead to a better quality and efficiency of your blog. It also shows the kind of effort you’re trying to put and how serious you are about your business.
10. SEO:
If you know the importance of having your website rank top on SERPs, then you’ll know Search Engine Optimization is always essential no matter what year it is. As long as the search engine exists, its optimization is highly necessary to attract enough traffic to your website. So always have your site optimized and ready for the search engine to crawl.
Best tools to improve in content marketing:
Content marketing is not just about how you market the content. It is also a cluster of how you write the content. So, let me introduce you (if you don’t know already) to all the tools that can help you in writing and marketing your content efficiently. There are a number of tools that you can utilise for the content writing purpose.
Plugins:
Always have a sight on which Plugins to incorporate on your CMS. If your CMS is WordPress, then find the appropriate plugins to make your job easier and efficient. You can find multiple plugins that can help you out in making your job smooth. There are a number of such plugins, for WordPress, Yoast SEO: helps in your SEO, Backup buddy helps in backing your data while writing. Thus, do acquaint yourself with multiple plugins, but don’t go with too many of them. More plugin slows down your website.
Google trends:
This is one more way to find the most trending topics and putting them up on your website. Trending topics are always the ones that reach a larger audience. The current hot searches will put your site ahead on the results. So, always be aware of the trends, and be ahead of your competitors.
One more widget everyone needs to put on their respective browsers is Grammarly. This widget helps you in working out on your grammar. Bad grammar pulls you down on the results page. Hence, always take care of the grammar upfront.
Buzzsumo:
In order to see which topics to concentrate upon, this would be the best site for you. Buzzsumo shows the statistics on which topic reaches the maximum social sites. Hence, according to these shared statistics, you can create your own content and share them on social media.
You can check demo Click Here
Buffer
Writing a content itself is not enough for your content to reach the masses. You need to take certain marketing precautions as well, to install this plugin to be able to directly share your content on multiple social media sites.
HubSpot
There isn’t just one single thing that HubSpot does. HubSpot is considered to be one of the largest tools to ever exist for your content marketing. It not only helps you with your SEO, but also shows you the analytics that you need to be aware of. These analytics show the different responses to the different things you’ve tried on your content.
Ahrefs:
The other important tool in the field of content writing, Ahref analyzes all the content of your website and gives you your ranking on the internet. It shows the amount of organic traffic that your site attracts. It also has features like showing the progress of your site.
Google Analytics:
Google Analytics is the one site every website user needs to use to understand the statistics. These statistics help you deliver better performances on your website. This analytics also shows which sector your traffic is coming from. You can also have a view at your bounce rate and the duration at which your audience is staying.
Furthermore, if you’d like to have a brief look at tools, do look here.
A great and impressive travel blog by Matthew Kepnes who has earned a great deal of recognition. This guy is an American Travel expert and has a domain authority of his blog at a whopping 66. That’s quite a great Moz Domain authority for a travel blogger and it isn’t easy to get such an authority. He went on to writing books and managed to become the New York Times best selling author.
An MBA graduate, after traveling to Thailand decided to quit his job. He decided to earn his living by what he loves to do. He has travelled to over 70 countries in his 7 years of traveling. How to Travel the World on $50 a Day: Travel Cheaper, Longer, Smarter is the book that has been critically acclaimed and is said to be an eye opener for all those heavy spending nomads.
The guy about who all the content marketers are aware of. Neil Patel has found his own ways of attracting the traffic through both his conventional and unconventional methodologies. These tricks have helped him create a name for himself in the world of SEO and Content Marketing. Now, he is the founder of multiple well-doing websites and has a great impact on all the digital marketers.
Neil Patel is now worth more than $10M and has been said to have a great impact in the world of digital marketing. So, do follow this guy in order to stay updated on all the things happening around you.
Content marketing trends in various industries:
In the Travel Industry:
The travel industry has been reaching new heights in terms of blogging and using its content on various platforms. So, let’s look at how this industry has been upgrading itself in terms of content marketing:
General Blogging:
The usual blogging has been on a hike for a long time and is believed to have a great future as well. These blogs are the way in which people are attracted towards the site. Different people enjoy the travel experiences of these blogs and become loyal customers.
Social Media Short Contents:
The short and sweet tales or quotes posted on social media go a long way in being shared among themselves. These shares are further publicised. This publicising further helps in the brand awareness.
Video Marketing:
Video Marketing is another way of putting the content in the videos and sharing them further. These are short and quick to read. There isn’t much detailed information but the short videos help in a quick understanding. They don’t consume much time and are quick in helping us by giving a brief understanding.
In Commerce Industry:
Content on the products:
There has to be certain content on every product description. The way the product sells also depends upon the description of the products. These details should be explained in a way that helps with a good understanding of the customer.
Instagram Description:
Instagram descriptions have always gone a long way in attracting people’s attention. These descriptions, if short and attractive, can keep the audience engaged towards them.
Video Marketing:
The videos of products and apparels give a brief idea on the products. The videos are not just enough, rather the product descriptions on the product page help with an easy understanding of the colour, size and further specifications.
Tweets:
The tweets made on each product also help with the product sales. Tweets are short ways of displaying the content and attracting the customer’s attention in a short time.
Bottomline:
Well, what can I say? There isn’t a page good enough to describe and guide you all about the content marketing. But I think this would be enough for a great start. Understand what it is and start improvising if you’re lacking in any of these. All these tricks have helped me in gathering about 200% of traffic in less than a month. Here’s how even you can improve your blog audience. I’m sure it’d help you the same as well. Have a great time in marketing your content!
If you’re a firm whose key concentration is B2B, then this B2B trends in 2018 would be something really useful to you. Often we see even after all those continuous efforts, still we lack in making an impact on our business. Attracting more businesses towards our firm becomes a tough nut to crack. Well, if you’re under such a situation, then you are in dire need of a serious upgrade. Check with all the points mentioned below as I’ve picked the best ones for you. If there seems to be a lack in any one of these, do act upon it quickly.
Content and Slides marketing:
The content marketing has been for a while in the market and I’m pretty sure it’s here to stay. Content writing is the first and primitive most section required for any website that intends to sell services. The respective blogs show their expertise in that particular area. It also attracts the audience or viewers who need information or services from that particular topic. It’s been proven that the services websites with blogs were able to generate 160% more leads than those who failed to maintain one. Content marketing enhances the chances of your brand recognition. You can further read the tips and tricks of content marketing here.
The slides have not been so acclaimed in the market but in my opinion, slides are an easy way to share the information. They are easy, on point, don’t claim much time and most of all slides are interactive. Every other slide you visit you are welcomed by images and short notes rather than those big blog posts that some might be annoyed to read completely. Slides are time-saving and people with less patience or who don’t have enough time in their lives can go with it.
Customization with AI:
Customize your website with AI. Yes, if you’d like to stay ahead in the race and ahead of your competitors, this is a must. Artificial intelligence is going up and up day by day. AI has the capability to interact with your clients directly and individually. It doesn’t just give vague answers to their query, whereas it understands the situation, analyzes and gives the best possible outcome. This enhances the bond between the firm and the client in the most efficient way.
To add to this, artificial intelligence plays a prominent role in figuring the faults in your website. A few tools that can optimize your website and figure out all the vulnerabilities in it. These tools are quite essential for the small to big scale firms.
Account Based Marketing(ABM):
If you don’t already know what an account based marketing is, let me help you with it. ABM is a process of client acquisition through specific marketing. Being specific and particular while marketing is always beneficial. Similar is the situation with ABM. In ABM, a customer or client is targeted directly and individual measures are taken to acquire them.
For example, if I am a law firm and would like to attract the mobile giant Samsung as a client, just sending out field specific emails to all such clients won’t do me any good. A certain individual attention needs to be given to show them how important they are to us. How you’re going to take care of their needs with utmost responsibility. That’s what ABM is. It’s like individually catching the particular fish that you need rather than throwing a whole piece of net in anticipation of finding that particular fish in it somewhere.
Leverage LinkedIn:
LinkedIn, after the acquisition by the software giant, Microsoft is now more popular than ever. B2B businesses have been benefitted the most from this. Through linked in the clients and firms could find each other based upon their requirements. If you’re a firm deal with SaaS, there can be queries you can address on LinkedIn and they’d recognize you. This increases the chances of you having a business with them.
Video and Podcast Marketing:
Video marketing, though has been for quite some time on the field, has been upgrading ever since. In this generation where everything needs to be in a blink of an eye. Video offers just the facility in sharing the information. Videos are fast, interactive and influential in most of the cases. Attaching a video to your blog also increases the stay time of your visitors.
The podcast is the other kind of media marketing. When you write a content, the viewer might not always be able to read it. As it’s highly impossible for a person to read and do some other job at the similar time. So podcasts offer you the flexibility of doing some other work while understanding the concept.
Implementation of AR:
Augmented Reality (AR) has been ruling the current real estate world. It’s certainly going to grow much larger than ever. In augmented reality, one needs to turn their camera on and place it to the location where they want to put the product. On the camera, you can see the product is placed at the appropriate location. The dimensions with which it’s said to be made is also accurate.
If you’re a product based company, instead of sending your clients the desired products, you can give them a good view on how it looks. They can sit at home or office and understand how it looks in their respective place. After having a good look they can straightaway place the order. This saves time, effort and stress.
Introduction of Marketing Automation into your business:
Marketing automation is one another important aspect in marketing these days. Marketing automation is highly required in order to make the work less stressful and more efficient. his automation is said to be used by about 80% of the businesses and is expected to have raised by 51% when compared to the 2014 statistics.
This automation collects the data from the prospects and then you can utilize this data to convey the appropriate information to the respective audience. This has a high relevance rate and the rate of conversion would be substantially higher than any other way. You can customize the automation tools in a way that it sends out the marketing emails or messages occasionally and keeps your audience stuck to you.
The next big thing that’s going to rule all over the world in a few years. People who can’t really use their hands in certain situations, tend to use the voice search instead. You must have seen Siri and Google now being so trendy. Out of which, Siri, which was founded in the year 2011 has been used by 66% of the users and Google by 33%. The rate of usage of these voice search engine is expected to rise drastically.
Voice operated searches are expected to be used more than 50% by the end of 2021 which is some great number. This shows the kind of concentration one needs to put on this. So while writing a blog or telling about yourself, do use the keywords that suits the voice search. Read further about this here.
In order to read further about this, do go through this article. and if you’d like to go through the statistics, visit here. For an in-depth statistics, visit this article.
Artificial Intelligence has come a long way from being just a science fiction dream to a reality which we see today. The world is evolving at a rapid pace and with it the technologies are being upgraded and are getting better too. Today we have more power in our pocket than we had in our homes in the 1990s. Not long ago, holograms and smartphones were just science concepts but now the smartphones can check our health as the technology is evolving. Some of the application areas of artificial intelligence are health, education, entertainment, services, security and many other domains but these fields are specifically the most to benefit from this technology.
People are beginning to explore the benefits of AI and how it can ease their life. Artificial Intelligence and Machine Learning go hand-in-hand so that machines can learn about critical programs to gain knowledge and respond to demands to perform similar human-like tasks. Artificial Intelligence enables a machine to self-learn from experiences and human intervention which finally provides us with human-like capabilities for interaction and problem-solving potential. From chess-playing computers to self-driving cars, AI is present in many areas which we not might have thought of. AI makes use of Deep Learning and Natural Language Processing (NLP) to accomplish tasks like these which drives automation and intelligent processes.
Various Technologies will Lead in Coming Days
Recently the most progressed fields are Augmented Reality, Virtual Reality, Voice Assistance and Artificial Intelligence, and people are beginning to wonder what the future might be like with this kind of technology. To explain these technologies in 2 lines I would like to start with Augmented Reality, which combines virtual objects with the real world which gives an interactive experience by computer-generated perceptual information. Another one is the Virtual Reality which is a computer-generated simulation of a 3D image which can be interacted in a real or physical way through an electronic device which has sensors. Last but not the least is the Voice assistance which has been with us for many years now but the enhancements in AI has provided more room for improvement in voice-assisted technology.
There are many examples of AR which are being used by individuals and industries like;
IKEA uses the application Place, which they have recently released so that customers can
check how different types of furniture look in their home which simplifies purchase decisions for the customers. Niantic’s Pokemon Go, an Augmented Reality based smartphone game, enables the player to catch Pokemon on real-time locations. Automaker Company Ford uses Microsoft’s HOLO LENS to design cars and experiment with new designs. Other automakers, Audi and Cadillac use Virtual Reality to enhance the customer experience so that the buyers can see the car model and the features. So in short what I mean to say is that nowadays industry giants have started implementing technologies like AR and VR in their fields and are experiencing a much better way to run their business.
Examples for Voice Search technology are Apple’s Siri, Samsung’s S Voice, Microsoft’s
Cortona and Google Assistant, Amazon Alexa. A lot of development has been made in the field of AI in the last few years which has motivated developers and companies to create more products and services around it.
These are some of the points which suggest why Artificial Intelligence is important:
1. Repetitive Learning though data
AI carries out continuous computerized tasks which are high volume and automated. Through Deep Learning, AI seeks to get in-depth information about a problem or a query raised by an individual. Human enquiry is still important to ask the right question so that the learning is in the right direction.
2. Adding Intelligence
Products which are already in use are improved through the integration of AI capabilities. Different types of components like automation, learning bots and conversational platform can be merged together along with huge amounts of data to improve the product or the service through AI.
3. Adapting to newer algorithms
AI continuously learns newer algorithms through structured data available to it where a new skill is acquired in order to provide newer experiences. An algorithm is important to solve a certain case or a problem. When new models are introduced, AI automatically learns through training and added data.
4. Deeper Insights
More and more analysis of data leads to a deeper understanding of the database available to AI and through neural networks many hidden layers can be uncovered. With the highest compute power, various models can be trained to go deep into data to get more relevant out of it.
5. Incredible Accuracy
The most appropriate example to define this point will be Google search and Google photos which gets better as we continuously use them. Through deep neural networks, AI achieves higher accuracy to dive deep into data and select patterns of the users which can be helpful in providing similar results.
6. Proper utilization of data
The algorithms are self-learning and the data is used appropriately and excessively by AI which helps bring out the best results out of the big data. Since the data is important now than ever before, it creates a competitive advantage because many newer techniques or solutions and be uncovered through proper analysis.
Conclusion
Artificial Intelligence can benefit the lives of each and every individual because it has the potential to offer a technology which can be implemented in day-to-day life and would make their lives easier. There are multiple areas which can benefit from AI and this will result in the reduction of human efforts, costs, and labor. Industries and Enterprises are already using AI in their business processes and have started seeing the difference through high efficiency, lower operating costs, and faster decision making.
Majority of the economists in the United States are saying that the next Recession is coming. Unfortunately, all the signs are pointing towards the looming Recession 2020. We can expect that this time, the Financial Outbreak will be massive and also quoted as the “biggest so far.” If we check with the economists, the main reasons behind the Outbreak are “US-China Trade war” and “Inversion Yield Curve.” So, we can clearly, anticipate how the crisis would be, because marketing during the bankruptcy seems non-sensical.
What is a Recession?
Generally, Recession is Financial Crisis when the GDP growth rate is negative for two consecutive quarters or more.
When there is a contraction in Business Cycle, generally there is a decline in economic activity. Slump usually occurs when there is a drop in spending. Typically, Slump is due to a lot of aspects such as the Financial Crisis, an external trade shock, or outburst of the economic bubble.
During this type of Financial Crisis, like Downturn, marketing agencies are the first ones to get affected. According to Forbes.com:
The furthermost reaction from most of the companies, during this Recession period is to cut, cut, cut everything, and the first one in the queue is always Advertising.
How do you know a recession is coming?
The two significant factors that tell about how we can know Crisis is coming, is mentioned below. Read the whole thing to understand better how economist reach to a conclusion regarding Slowdown.
Yield Curve
If you follow all the studies and forums about the Economic Outburst, then you will know that yield curve forecasts about the Trough. Since 1970 it has been seen that the slope in the yield curve becomes negative before every slump. It is called an “inversion” in the yield curve in this the short maturity rates, exceed the high maturity rates that lead to Great Contraction. The below graph showcase the ten to the two-year yield curve
Source: Chicagofed.org
Yield Curve is usually, based on ten years treasury note just fell below the rate on the 3-month bond. It is the first time we’re are moving forward with limited data. All the Central Banks over the world are worried about this Great Financial Crisis. You can see the graph below, which showcase the estimated bankruptcy probability.
Source: Chicagofed.org
FED is trying to neglect the Outburn 2020 to maintain full employment. It is of the critical targets that everyone is looking for. The Alerting situations raised by monthly Yield Curve is making FED worry. As most of the banks invest majorly on treasury bonds, it is an alarming situation for Banks.
US Trade War with China
It is a known thing to the whole world, that how big competitors are US and China and behave as the Global Predominants rather than Partners. The raging trade war and currency war are the reflections of what these two countries are doing. However, the long term conflict indicates that the ceasefire will continue, as a result of this economy of both the countries will impact severely with no long term peace.
However, the Fed was sending signals that aim to pull back on the increase rate made in 2018, that include the concerns in the economic outlook that include Trade war with China.
Mr. Trump has recently blasted the Fed for not reducing interest rates. It is under the belief that the interest deduction will lead to more lending activities and will make the US dollar more competitive with foreign currencies.
According to Nouriel Roubini, a Prof. at NYU Stern School of Business predicts that:
The Global expansion will continue till next year, while the conditions will ripe for the next Global Recession 2020. The Global stimulus packages are coming to an end, inflation is coming, trade disputes will drag the economies by pulling down the interest rates.
For, both the US and China, it is essential that they should make peace and don’t escalate the war to the next level. To a point where there will be an unnatural end to all the supply chains.
When is a recession coming?
Most of the economists and surveys are predicting that by the mid of 2020 Outburst will start it is even predicted that it will have 38% impact on all the sectors, in later 2021 the outburst may have 34% impact. There is already a 2% decline in the manufacturing industry.
Will there be a recession in 2020?
As it is said, “better than you expect and worse than you even hoped.” However, according to the National Association of Business Economics (NABE) latest survey, which is based on 53 professional economic forecasters.
The consensus, clearly showcase that the economy has grown to 2.8% pace in the year 2018 while coming to 2019 the growth with come down to 2.6% pace growth, that will decrease even more in the next year 2020 and become 2.1% pace growth.
However, if we take US Presidential Elections into account, some of the marketers say that it will come before the Presidential Inauguration. During, this time the job growth will continue to be in brisk, with a decrease in average monthly increase, which is 184,000 in 2019 and it will be 139,000 in 2020.
On the other hand, the residential investment in 2020 will see a downfall to 1.3% from 2019 level. All these situations rightfully indicate that yes there will be a recession in 2020.
Only 2% of the 226 respondents will see the US recession this year, compared to 10% survey that showcased in February. There is the panel split to discuss whether the next Recession will hit 2020 or 2021.
Recession in US 2020
The first impact of the US Recession is Job loss. Not just in the US everywhere. During Credit Squeeze, there will provide no cashflow, and firms will be facing an economic crisis; Job loss becomes the primary issue. On February 2010 it was recorded that the US economy is shakier than that of Canada’s. Most of the service industries have reported the dropping in their market price value.
Between 2007 and 2009 there was a massive loss of the job, a total of 2.6 million people lost their jobs, the highest in 6 decades. The number is equal to the amount of the post found in the states such as Wisconsin.
A majority of the economist are saying that the next recession 2020 US will also be a part. However, according to the NABE recent survey, Donald Trump scratched out all the looming Credit Crunch in US news and stated that:
US is well prepared for all the situations. I don’t think we are having recession. we are doing tremendously well. Our Consumers are rich.”
Mr. Trump has recently given a massive tax cut, and he believes that people have saved and already have money.
According to Larry Kudlow, the chief economic advisor of President Trump:
Consumers are working at a very high wage. They are even, spending at a high rate. People are also saving money. So I think the second half, the economy is going to be good in 2019. I sure don’t see a recession.
Recession in India 2020 or मंदी
The Global economic decline in 2007 or मंदी started in December, the impact on India was enormous; the GDP growth slowed down to 9% in 2007-2008. After Wall Street collapsed in September 2008, the Indian GDP decreased to 5.8% and remained the same for the quarter.
In 2008, Indian high foreign exchanges reserve, prevented a lot of chaos, even after the foreign investors withdrew $12 billion from the stock market and foreign credit suddenly vanished.
During the Great Recession, according to the survey of Labour Bureau Ministry of Labour Employment: 500,000 people lost their jobs between 2007 to 2009 from eight primary industry, Information, and Technology, BPO, automobiles, gems, and jewelry, transportation, construction, and mining industry.
Source: Govt. of India
Nevertheless, there was a significant decline in the output of Automobiles, commercial vehicles, steel, textile, petrochemicals, constructions, real estates, finance, retail activity, and other sectors. Exports from India fell by 12% in October in Dollar terms.
For India, the Global Economic Crisis is coming, and the increasing trade war will lead to lessening external demand. All this could be heavy on our payment balancing, can damage the foreign financial outflow, and trigger exchange volatility.
According to Prof. Biswajit Dhar of JNU:
Indian exports that shrank down recently, is expected to remain affected as the trade barrier is hardened and their is the ongoing Trade war, all the countries around the world will try to protect their domestic exports.
Keeping trades aside, the oil exports will also be hampered. Given that US oil export from India has increased to 3 fold between November 2018 to May 2019.
The measure took for Indian Recession 2020
In a recent press conference with Indian Finance Minister Nirmala Sitharaman on 23rd Friday 2019, she slew all the safety measures that the Indian Government is taking. Regarding the steps FM Nirmala Sitharaman told
पूरी दुनिया के मुकाबले भारतीय अर्थव्यवस्था बेहतर है। निर्मला ने कहा कि आज अमेरिका और चीन जैसे देशों के मुकाबले भारतीय अर्थव्यवस्था कहीं ज्यादा बेहतर है।
Adding to this, FM Nirmala Sitharaman explained about all the necessary steps; the Indian Government is seeking to overcome the situation.
To boost the Auto sector: the govt has lifted the ban on govt bodies from replacing the old vehicles. The govt is asking to “Go and replace your old vehicles.”
Rs 100 lakh crore is pumped for infrastructure. A task force has been assigned to expedite this investment, who will fund the money and monitoring every activity. Delayed payments will be on priority. Liquidity flow will be smoothened.
The timely refund of GST for the MSME, all the pending refunds have already started and will be completed in 30 days. The future GST refund will be sorted in the next 60 days.
Source: Govt. of India
The papers related Loan closure amount will be given in 15 days of the closure. Banks will improve the One Time loan Settlement (OTS), that will help MSME by implementing the checkbox system.
RBI has directed all the banks to release the benefits of the Repo rates to the customers. The primary target of Government is to diminish the interest rates and auto rates.
For the Banking sector, FM announced that:
“Government is releasing 70,000 crores, with additional lending of Rs 5 lakh by providing upfront capital to PSB” This will help strengthen MSME, retail borrowers, and traders.
Government removes Angel Tax on Startups.
Encouraging investment in Capital Market, it is even decided to withdraw the enhanced surcharge levied by the Finance No. 2 Act 2019. The pre-budget position is restored.
Violation of CSR will no more be treated as a criminal offense and instead will remain as a liability. After 1st October 2019, income tax orders, tax, the summons will be issued through the centralized desktops.
This clearly, showcases that India has already taken all the significant steps to overcome Downturn or मंदी.
Recession in Europe 2020
Europe has more than 75% chances to fall in the upcoming Credit Crunch according to the lead economists. The Stock Markets in Europe extended their losing streak. The oil prices have fallen 3%, and the mounting Stagnation continues to hit the investors confidence.
In the last six months, the top 100 firms in Britain have dropped more than 1%. On the other hand, the stock market in continental Europe has dipped in response to the investors who are thinking to raise funds.
FTSE 100 ended this Thursday, and it dipped by 1.1%, at 7,067 lowest level since February. On the other hand, German Dax fell by 0.7%, and French 40 backed down by 0.3% dragging the European market to six months low. Later, in the coming days, it is evident that Europe will be facing a Huge Stagnation.
No-deal Brexit UK
There is an increased risk of no-deal Brexit in the UK, as it is clearly visible that the no-deal Brexit will push the UK into bankruptcy. According to Boris Johnson of NIESR (National Institute of Economic and Social Research)
There is one in four chances that the country is already in recession, growth has also been stalled for in the recent months, business investments have flatered and pounds has fallen sharply.
The economist believes that the UK economy has diminished in the last three months, making the first negative quarter in the first seven years. As a consequence of factory closure planned for potential disruption around 29 March the Original Brexit deadline.
The European Central Bank has cut down the interest rates further as a negative territory next month. Most of the major Central Banks that includes the Eurozone’s are free of politics have not engaged in outright manipulation.
All, these situations indicated, Europe will face a Great Economic Downturn, majorly affecting Germany, UK, Italy, Portugal.
How long do recessions last?
There is no specific period for the Credit Squeeze, if we check the records than the Last Great Contraction was on December 2007 to June 2009, one year six months, 5.1% decline in the GDP.
Recession 2020 is due from 4.5 years if we take in to account the United States business cycles, the average length of the growth economy is 38.7 months or 3.2 years. On an ordinary Credit Crunch lasts for 17.5 months or 1.5 years while the full business cycle on an average is 4.7 years.
The Longest Financial Crisis or the Contraction occurred in 1929, known to be the Great Economic Contraction in the United States that lasted for 43 months or 3.6 years. While the second slowdown is known as the “Great Recession” that we all experienced in 2007 lasted for 18 months or 1.5 years.
How lousy will recession 2020 be?
The three things to keep in mind which all are true: Most certainly the USA will not undergo Trough right now. Yes, the US may avoid one of the disastrous foreseeable future. But, the chances of the US to fall in this Trough is increasing every week.
Long term interest rates have plunged since the end of July- there is a shift which historically predicts that the lower interest rates are cut down from the Federal Reserve. It showcases an increased risk factor in the economy into outright contraction.
However, a lot of Financial marketers have been saying that there will be no Credit Crunch for the US in 2020. On the contrary, there are plenty of proves which directly indicate about the near Financial crisis.
Here comes the most important one, due to President Trump’s, On-Off execution with China leading to Trade war with this other countries have fed uncertainty with business decision making. On the other hand, the corporate investment is lessening, even though tax cut by Mr. Trump will boost the investment.
According to an economist Tara Sinclair, of George Washington University
Recession 2020 is a self-inflicted wound type, but how deep the cut will depend on many other categories of the economy thereafter on the policy response.
Now the economy in China and the other neighboring Asian Countries are getting weaker, which is giving rise to the Trade war with the United States. While the Europeans who are already in large ongoing debts will surely fall in Credit Crunch. Incase, Britain crashes out of the European Union with no current exit deals until October 31st, Europe will face even more profound challenges.
According to the survey of the Institute of Supply Management (ISM), in the United States, the growth rate has slowed down for a consecutive month, and July has the weakest reading. All these factors indicate us how bad the Recession 2020 would be.
What happens during a recession?
Effects of Recession are a lot; all of them related to the Financial Crisis, in this period, there is always as tremendous negative economic growth. You can see all the Financial similar thing to be falling apart. We listed out some of the significant changes that take place during this period, check it out:
Unemployment
During the Financial Crisis, the firms produce very less, and therefore, they require very fewer employees. Nevertheless, some of the firms even go out of business during this period, causing the workers to lose their jobs.
If we take 2007-2009 trough into account, a lot of people lost their jobs who belonged to banking or finance sector. Simultaneously when the demand for the Cars fell, the workers were laid off.
Saving Ratio Increases
During the Financial Crisis, people become careful and tend to save money as the market falls. If people have a fear of losing their jobs, then usually people don’t want to spend or lose the money they have and instead start saving more money.
If we consider the previous surveys, it is clear that during the Great Economic Contraction, there was a Paradox of Thrift- as people tend to save more and reduce consumption. This makes the Downturn even worse as it reduces the consumption rate. Individually, everyone is doing the right thing by keeping, but as everyone targets on saving, then on a total consumer spending decreases.
Fallen Interest Rates
In Stagnation, interest usually falls. This is all because inflation is lower and the Central Bank tries to stimulate the economy. Lower Interest rates, help the economy from striking the Stagnation.
Lower Interest rates usually decrease the cost of borrowing and encourage investing and consumer spending.
Fallen House Price
Usually, the House Price falls before Stagnation strikes, and this is one of the critical cause of Recession. During this time, unemployment increases, people don’t want to invest in housing as they can’t afford mortgages, so home repressions become common. This leads to an increase in housing availability and decreased demand for it. This is one of the primary reason for the 2009 Recession.
How can different Agency survive in a Recession?
The best and the safest way is to diversify your clients. In this way, your work will not be just entirely dependent on one client from one region. If you have client contraction problem, it is better to plan to grab more clients.
Surviving in Credit Squeeze is what each and every firm wants. To make it easy for all the readers, we have listed out some of the top hacks that you can use.
Build Cash Reserves for your Agency
If you are new to the market, usually, companies under the span for five years should have cash reserves at least for a year. This can a combination of business checking cash plus personal saving. Until your business gets a constant monthly cash flow, it is always better to have a Cash reserved for future use.
This is important for the people in all sector because once a Slump has started,
Clients can slow down your payments, and even can cut-off the cash flow.
In worse condition, one of your more prominent clients may be forced to sell his business.
Either way, cash reserves are significant, if are having a Digital Marketing, or an Advertising Agency, it is recommended to keep reserves for at least a year. Marketing fields are increasing day by day. It is always better to be on the safe side by keeping some reserves.
Even though Digital Marketing and Advertising Agencies are least affected, it is good to have reserves, as you will have time to grab some clients for the future growth of Digital Marketing, and SEO.
Controlling the Client Credits and Invoice Clarity
When we come down to transaction a lot of firms work based on net-30 days terms. This means you provide a service and wait for 30 days to receive the payment. However, if it is the Economic crisis, then 30 day period might look a bit difficult for all type of firms.
Reasons:
Clients might ask to defer the payment with 60-days or 90-day payment
Sometimes, clients may even go out of business, leaving you with hard work and cashflow.
The alternate way, here is to check your client’s commercial credit, and eventually prepare your self especially during the economic crisis. You can provide your Client with a Credit Proposal according to your withstanding.
Try to implement, a reliable system for invoice collection, that reduces the overdue payment issues.
Outsource Your Services
During the Trough time, it is best to outsource your services, than hiring new people. It will lower the labor cost that will strengthen the bottom line, they will provide some cash flow, and the agencies can allocate their resources to research and development.
Outsourcing is a viable plan during the Trough period.
Conclusion
If we look at all the points above, we can conclude that all the suitable, reasons are indicating that the Downturn can be a bad one, mostly for the Countries and businesses will be affected by it.
For all the job holders, it is better to have faith in their savings for a year. So even if there is a situation of jobless, then their saving will be the biggest saviors.
Even if the Government of the different countries says that they are good to go and can face the next Slump and there will cause no damage, however, we suggest that it is better to save some Cash Reserve that is suitable for at least a year.
If you have any further query regarding Slowdown, do feel free to write us, through email or comment below. We will surely help you!
Small businesses with a promising growth trajectory and the cash flow under control, and with some funds available to invest in the business can find it challenging to decide on what to spend. Investments in accounting software while not being as much fun as a fleet of drones for making home deliveries can be more practical and help the business shore up its bottom line while preparing for the second round of funding to take it to a higher orbit.
Prevalence of the Use of Accounting Software
A study of over 700 small businesses revealed that around 90% were either already using some technology for accounting or were planning implementation in the next couple of years.
To put it in perspective, the figure is higher than even the adoption of technology on information security, customer relationship management, project management, and human resources that are universally regarded as vital areas for the deployment of technology. Not surprisingly, 82% of businesses reported a significant impact on their operations due to the use of the accounting software.
While it is true that you should never invest in anything just because others are doing so, it is very apparent that investment in accounting technology is something that merits paying closer attention. Investments in accounting fintech are nowadays far more than in any other technology because of its proven capabilities to contribute to the better management of the business finances and the overall growth of the business.
Virtually every business, irrespective of its sector and scale needs to have accounting software in place to not only ensure regulatory and tax filing compliance but also to free up vital human resources to look after other essential functions.
Expected Benefits of Fintech Investment for Small Businesses
It is no secret that spending on fintech, particularly accounting software, is on the rise in 2019 in small businesses. Most business owners, while willing to invest in accounting software, are often not too clear about the multiple benefits of its use apart from convenience and numerical accuracy. A quick look at the basket of benefits that small businesses can enjoy with the implementation of accounting software:
Less Time Spent on Routine Tasks
Perhaps one of the most essential benefits of using accounting technology is that it makes routine tasks like invoicing and payroll processing that tends to be very time-consuming more efficient. Typically, the software has the capability of taking inputs from various modules and undertaking the processes without any further intervention leaving business owners with more time on their hands to focus on building the business or even get on top of their debts by reading debt settlement reviews online.
Even if you have some accounting system in place, it is always possible to use it more efficiently by connecting it to some useful apps. A research study conducted by Intuit revealed that it was possible for every QuickBooks user to save around four hours per week by connecting to just one app.
With the number of possible integrations above 600, small-business owners can potentially save a lot of time undertaking routine functions like time tracking or expense management.
More Accurate
Small business owners who try to manage accounts on their own simply because they do not have the luxury of to hire dedicated accountants tend to make a large number of mistakes because they are constantly distracted by the other demands of the business.
Further, if they have not been getting the desired amount of sleep, which is very common to busy entrepreneurs, they are liable to make even more errors leading to the generation of false reports, wrong invoices, and more that take even more time to track down and correct.
According to The small balance business, by implementing a software solution for accounting and finance, it is possible to ensure that all the tasks will be completed on time with a high degree of accuracy. A routine job like bank reconciliation that takes a considerable amount of time when done manually can be completed very quickly by the accounting software without any errors to give you the satisfaction that the records match the actual bank balance.
In the absence of accounting software, it is all too straightforward to miss making an entry or enter an incorrect amount that results in a mismatch down the line. When you use accounting software, you can very easily compare the numbers side-by-side, making it easy to spot the mistakes or even signs of fraudulent activity.
In case of a mismatch, the software itself will usually have the capabilities to identify the source. With a correctly set up system, bank reconciliation can accomplish in minutes instead of the agonizing days in a manual mode.
Simpler Tax Filing
Tax compliance can be a nightmare for small business owners trying to do it manually. However, filing tax returns and claiming deductions become very simple when done through accounting software.
When it is time for you to file your returns, the system can pull all the necessary data from within the system and ensure an error-free performance if you have been using it to record all the financial transactions around the year. Another significant advantage of using fintech accounting software is that it is always up to date with the latest tax rules and regulations and prepares the tax returns accordingly.
Insightful Financial Reports
Making sense of all the information, mainly financial information that flows through every business can be a torrid task when it has to be done manually. Accounting software has the added benefit of being able to generate many different kinds of MIS reports that you can use to find out what is going right and what needs to be right in your business.
Generating an income statement or a cash flow statement is now a breeze as are reports of your top selling products and their contribution to sales and profits.
Conclusion
Given the multiple benefits of fintech, small business owners should direct a substantial portion of their surpluses to deploy technology applications, especially accounting software to save on time, increase efficiency, and gain useful insights into the business operation.
