Sean Reiser

Over on linkedin someone in my network posted to following question "Is social media usage going to increase or decrease during a recession by consumers? In the last tech bust, I remember many tech professionals going back to school, becoming real estate agents, or fleeing silicon valley, will migratory usage patterns evolve in social media? Yet even if usage of these tools increases, yet do these consumers have buying power?". In the time I crafted a response the post the question had been deleted and I had lost my original answer, but as it's floating around in my head, I figured I'd weigh in here.

• This is not the same as 2000-2002. The internet and social networking isn't just for techies anymore, the average person is participating. Even services that would've been considered fringe a year ago (twitter and friendfeed are examples of that).
• Many of the services have business plans today. in 2000 the plan was 1. Launch Website with cool name 2. ??? 3. Profit. They run leaner then they did at the beginning of the century.
• In the tech bust, techies were shook loose because there were better opportunities elsewhere. That's not the case this time. Unless you're going to beocme a repo-man or enforce foreclosures there isn't a "greener grass" on the other side of the fence right now.
• Social networks are essentially free to the user. People will still want to interact with others and meet folks. While saving money sitting at home with a glass of wine chatting on friendfeed has a similar feel without the cost.
• As people look for work, assistance, etc they will want to leverage the connections they've made online.
• The companies that survive this burst will be the ones who connect with their customers and understand them. Social media does this in a way that traditional advertising doesn't. The smarter firms will be shifting some of their Marketing and PR budget in this direction. If the Automakers were listening to social media the CEOs would've drive to Washington, DC. They would've driven their most fuel efficient cars from Detroit.

Based on all this I would say that social media would expand through the recession.