When the Going Gets Tough, the Tough Get Advertising
The most dismal retail season in the past 40 years (according to the incessant slow-news-day reports I keep hearing) reminds me of what an old account guy told me many years ago: You can’t save your way to prosperity. That sage advice is becoming more apparent, as consumers have shunned the dramatic, metaphoric pants-dropping by America’s retailers. 30, 40, 50, 60 percent off . . . it hasn’t mattered much, and in some cases has instead served notice that the stuff was way overpriced in the first place.
Brands, and retailers, are going to have to work much harder to stay relevant and have an impact, now that consumers are pinching their pennies and considering even the most minimal purchases. That means finding ways to stay in front of consumers, maintaining each brand’s place in consumers’ overcrowded heads. And the best way to stay in front of consumers remains advertising, whether your CFO understands that or not.
It’s logical that you’d cut back on “non-working dollars” (not my words; these are words I’ve heard from MBAs from a dozen different companies over the years) when profits get squeezed. With that thinking, marketing dollars would be the first to go. (They’re hard to measure anyway.) So long, sweepstakes. Goodbye, TV campaign. See ya, agency. That’ll save you some money. And cost you what may be your only true edge–Differentiation.
Cutting your marketing spend is ultimately a self-fulfilling prophesy. Because the only way for a brand to stay top-of-mind, especially in a recession, is to stay front-and-center. And the only way to do that is to be where your consumers are. We’re still watching the Superbowl. We’re still watching American Idol. We’re still following NASCAR. Smart brands will be there, too, reassuring us that the brands we love are still smart choices. We may buy less, but we’re still buying.
So while everyone talks price, the smart brands talk value. While everyone shouts “Save!” the smart brands shout “Saavy!”
While consumers are being careful about what they spend, we’re still seeking satisfaction. In this recession, as in all previous ones, indulgent brands are still selling strong. Because we’re all looking for a little escape. Or a little reward. The key now is to have your brand maintain an edge (image) while congratulating consumers for their patronage (value). Show consumers that they made a smart choice. Show them why spending a little more for taste/performance/pleasure is as smart as it is comforting. We’re all looking for comfort these days. Successful brands will show us where to find it.
