Ads taking cues from economic downturn

Noticing more ads that talk about low prices and economic stimulus plans? You aren't the only one.

And thanks to the current economic downturn, you are likely to see more of them - even if they seem out of sync with the products they advertise. Sprint recently ran ads touting a "family stimulus plan" for mobile customers, while OpenTable.com, an online restaurant reservations service, had been promoting an "Appetite Stimulus Plan" that grants diners access to a three-course meal at a special price.

Sprint spokesman Mark Elliott said the ads emphasize value while demonstrating the many things a Sprint product can do, while OpenTable.com spokeswoman Shannon Stubo said the promotion represents a "fun way to get people interested" in using its service. Both companies viewed the promotions as successful.

With new reports coming in almost daily about the scope of the economic malaise, the easiest thing for any marketer to do is to dial up commercials talking about bargains and play up key phrases consumers have heard in the news, such as "stimulus" or "bailout." (As anyone who has seen the recent Toyota ad talking about zero percent financing while "Saved by Zero," a 1980s song by the Fixx, plays in the background, can attest, the messages are coming through loud and clear.) Sounds nice, but these ads can sometimes undermine a marketer's long-term strategy.

"You've got to steer the ship in a slightly different direction. You don't abandon ship," said Fran Kelly, chief executive of Boston's Arnold US agency. Retailers and automobile manufacturers are particularly guilty of this. Since these marketers need to move products quickly, many of their current ads put the accent firmly on price and sparking an immediate sale.

The more the commercials focus on value, price, and promotion, however, the less evidence they give consumers about why the car, store, or product in question is any different from anybody else's. The risk? When times get better, consumers may well associate the marketer only with low prices - not an attractive image when times are good and a shopper has a yen for something luxurious, comfortable, or sporty.

"There still has to be some kind of emotional connection made with that consumer," said Lesley Bielby, executive vice president and chief strategy officer at Boston's Hill Holliday agency. "At the end of the day, you still have to convince a consumer that they should come to you rather than your direct competitor."

Airlines have learned this the hard way. Once known for slogans like "Fly the friendly skies," many of these advertisers have lost their identity. These days, most consumers who don't belong to a particular airline loyalty program pick a carrier based on price and flight times.

The focus on price might even backfire immediately, suggested Eric Groves, senior vice president of worldwide strategy and market development at Waltham's Constant Contact Inc., an e-mail marketing specialist. He has already begun to notice an overabundance of e-mail messages from large retailers that emphasize low prices and quick purchases, rather than giving consumers interesting reasons to get out and buy.

Some marketers sense opportunity and are using ads that show how they answer consumers' needs. For instance, one recent Web ad from Royal Ahold's Stop & Shop Supermarket Co., based in Quincy, features Lydia Triplett, a single mother who tells viewers "it's important to get the best and save money." And MassMutual Financial Group has for several months been telling consumers how the company helps promote "good decisions."

Ads like these don't scream about the tough economic times facing many potential customers. They just nod to them. And that philosophy, suggests a number of marketing experts and ad agency executives, is a better one to use when consumers are counting every penny.

"It's more of a subtle exercise," said Ted Nelson, principal at Mechanica, a Newburyport agency. "What you don't want to do is say, 'The sky is falling down,' and what you don't want to do is get people to clamp down even further" on their spending.

At Wenham's Mullen agency, executives take a weekly poll to monitor consumer sentiment. What they are finding, according to managing partner Jim Hartrich, is consumers are still "looking for things that make them feel good." So, he said, Mullen has been imbuing ads with "a sense of empathy with our customers," such as the commercials for Stop & Shop and MassMutual.

"People want to be optimistic, but all the news is pessimistic, and there's a big opportunity for brands that can help people," he said.

The determining factor will be whether advertisers can get out of their own way. In times such as these, advertisers are under more pressure to make sure every dollar they spend on marketing can be tied to increases in sales. As a result, many feel they have to put money into ads aimed at generating quick results, said David Rich, senior vice president of strategic marketing worldwide at George P. Johnson. He works in the Boston office of the events marketing firm.

Breaking away from the urge to hunker down is hard to do, he suggested, "but it's the difference between surviving or thriving, and failing."

Brian Steinberg is the television editor of Advertising Age.