Electronic Retailer Blog

In tough times like these, the first thing many marketers cut back on is marketing and related marketing programs.

Advertising Age recently reported a $600 million cut to advertising and promotional budgets. Even Federal Express is feeling the pressure. FedEx, along with several other advertisers, dropped out of the Super Bowl after having participated for the last several years.

Spending cuts are affecting many different businesses. However, media planners who anticipate cutting resources in these tough times may want to reconsider acting too fast without considering all the facts.

Conservative Consumer Behavior
Yes, the news is filled with negative stories about cautious consumers in this fledgling economy. But even though consumers are spending less, experts have noticed their spending behaviors mostly affect industries including shopping, traveling, entertainment and consumption of higher-end brands. As a result, consumers are responding to these tough economic times by turning to discretionary leisure activities that don’t cost a lot.

Connecting with Consumers
But advertisers can still benefit since more time spent watching television, surfing the Internet, playing video games and engaging in other at-home activities means it could be easier to catch consumers in a more receptive state of mind.

When consumers engage in activity outside of home, there are usually too many distractions like driving, cell phone use and interacting with others that easily diverts their attention.

Advertisers know that their messages are much more effective when delivered in a less distracting environment – whether it’s through television, a magazine or the Internet. This gives them the best opportunity to establish a connection.

Do you agree?

Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a full-service media buying agency based in Dallas.

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