The economy may not be in recession yet, and there's a minor chance it will avoid one in 2008, but marketers/advertisers seem to be in 'recession-mode,' regarding the tone of their ads, The New York Times reported Monday.
Along with Wal-Mart (NYSE: WMT), the Times cited several corporations that have taken a 'tougher times ahead' approach with ads. These include Capital One (NYSE: COF), "Uncertain times call for a certain rate," Starbucks (NASDAQ: SBUX), which is testing a $1 coffee in Seattle, Washington, and Nissan (NASDAQ: NSANY), which is emphasizing the fuel economy of its 2008 Altima, rather than the car's styling and performance.
Stephen Quinn, Wal-Mart's chief marketing officer, told the Times, "When gas prices spiked last spring, we saw the pressure this put on our core customers."
Economic Analysis: With major ad markets in California and Florida bearing a large portion of the housing sector's slump, it's not surprising that corporations have altered ad campaigns to emphasize the money-saving / better value nature aspects of their products and services. But one should not equate this with Corporation America believing a recession is ahead. Ad tweaking indicates that a corporation doesn't anticipate a robust year in its sector, and is adjusting its operational stance.
A better indicator of Corporate America's view of the economy? Staff hiring. If dozens of corporations announce that they're laying off employees, that'd be an indication that a economic contraction is likely.
As economy slows, corporations alter ad themes accordingly
Posted Jan 28th 2008 12:00PM by Joseph Lazzaro
Filed under: Wal-Mart (WMT), Starbucks (SBUX), Marketing and advertising, Recession
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