The economic downturn first hit just before the holidays last year and companies were by no means eager to continue to throw money into advertising when it was clear no one was buying.
Consumers and companies alike were panicking, and everyone stopped spending. This year, though, we may be seeing the economic boost the holidays have always promised – and we might be getting that present a little early.
A wide range of retailers put money into holiday campaigns, and they showed more enthusiasm for spending ad dollars than they have in previous years, especially in TV.
The Gap, for example, hasn’t bought television ads for two years, but returned to the tube this year with a new campaign. Wal-Mart, K-Mart and other bargain-priced stores pitched the savings tip hard this year, as consumers cautiously began to spend money again while sticking within their budget.
By positioning themselves as the places where consumers can get the most bang for their buck, both stores hope to see a good return on their ad investment.
Best Buy, J.C. Penney, Home Depot, Lowe’s, Sears, OfficeMax and many others jumped on the ad bandwagon. While strategies and ad mediums differed, the message was the same: Spend money this holiday season, but shop here and you’ll spend much less.
I think you will see an extension of this message following the holidays, to try and tap into a more cost conscious consumer mentality even as the recession recedes. Retailers and marketers who can effectively position their products and services as good values will have more success in today’s challenging marketplace.
Peter Koepell is the President of Koeppel Direct and has over 25 years of advertising, marketing and media experience.
