Advertising in hard times - GM's new commercial

During one of what must be the most difficult times in any business, GM made a surprising move. Last night I watched a commercial that basically said, "We're GM, we didn't do a good enough job, we're completely restructuring, here's how we're going to do it." It was a really good commercial. Against what many believe, in hard times, DON'T eliminate your advertising and marketing budget. In the case of GM, some very smart marketing person (or team) decided that the American people are famous for forgiving when they are told the truth. The ad didn't use a bunch of flowery language, didn't try to temper the message, just told the truth. The commercial clearly told viewers that the company could no longer do what it has been doing. It's our money that's bailing them out, don't we have the right to know? I don't know about the rest of you, but I can handle the truth and appreciate it. If GM would have come out and said, "We're better than before, we are still the greatest, we're top of our game, etc." I would have been disappointed. They're not. Instead, they are saying, "We screwed up and now here's what we're going to do to fix it."

By launching a straightforward campaign, the backlash of naysayers is likely to be less volatile. There will be those who complain that our bail out money is going to the advertisers instead of into the restructuring process, but I would have to disagree. When your company is doing something to improve itself, the only way your publics are going to know is if you advertise it. You cannot rely soley on public relations - even though that's an important part of the communication strategy. Too many businesses see advertising as an expendable expense. Instead, it should be considered an invaluable investment. You can make the greatest product in the world, but if the people don't know about it, it remains the greatest product in the world - sitting in a garage somewhere. It is hard to justify advertising expenditures when you have to lay people off. People are more important, right? The fact is, with a slow down of business, you need fewer people to complete the job. The smart companies are ramping up their advertising right now while media costs are lower. If I was an advertiser, I'd want to be the one who people hear about, talk about and buy from. The others are biding their time until things turn around. Sadly things may not for them.

As a cynical Gen Xr, I must say that I'm taking the wait and see attitude with GM. Maybe it's still a bunch of puffery. But when you tell me that you're decreasing the number of models available, that tells me that you're cutting fat. When you tell me that you're making an environmentally friendly car that qualifies for stimulus money, that tells me that you're jumping on the environmental bandwagon and we may all benefit. We'll see how things turn out. I'm currently a die-hard Honda fan and probably STILL won't buy a GM, but I know there are many who are staunch buy-American types who felt like the world was going to end when GM crashed. This ad campaign gives them hope. Good work GM. Now if you can make a car as reliable as my Honda, there may be some competition. We'll see.

Thinking outside of the box

Today I've been presented with a very interesting marketing idea. Sponsorship. OK, I heard the collective eye roll out there. Sponsorship isn't a new idea, you say. I agree. But have you ever REALLY thought about sponsorship on one of those REALLY cool Indy cars? My client's son, Matthew Inge (the next big name in motor sports!) is on his way up to Indy racing. Apparently there are several levels, but unlike most sports, colleges don't give scholarships for racing. As a result, racers must finance their own events or rely on sponsors. I know, none of this is new yet. However, what I found fascinating is that race fans are loyal sponsor consumers. Why? Because they know the only way their favorite driver is out on the track is because of sponsors. I also was given a lesson in cross promoting, using sponsorships to build your own personal network, and actually profiting from a sponsorship that you are paying for- in real dollars.

For example, a grocery store may sponsor a driver, then as part of a value-added promotion (say Memorial Day weekend advertising) the ketchup, mustard and hotdog suppliers are given an opportunity for end cap advertising, posters, and you guessed it, a logo on the race car. The suppliers pay for this value of course and if the grocery store sells enough of these value packages, they will actually bring in more money than they paid for the sponsorship in the first place. It's a win -win-win situation.

Racecar sponsorship is not for everybody. It's best if you can commit some money to a long term relationship. As with any kind of advertising, consistent communication is the most effective means of driving (pun completely intended) your message home.

The audience delivered by a sponsored car is pretty impressive too. 70% of all race fans are wealthy middle-aged men. Hmm. There's some buying power there - I'm not sure why Tide sales skyrocketed after Ricky Rudd took the wheel behind the great big orange car, but apparently men bought a bunch of Tide after that happened. There is much more to come on this topic I think. In the meantime, anyone have a client looking for some pretty awesome exposure over the next few months? I've got a driver for you.

Careful with your direct mail

Read an interesting article today by a consumer watchdog reporter. A variety of people sent her direct mail pieces that appeard to be a telegram announcing that a $25,000 grant had been awarded to the recipient. Of course, there is the "duh" factor. Of course the recipient didn't receive a $25,000 grant for which they never applied. However, the article pointed out some things marketing professionals need to pay attention to. The company used words such as "approved" and "pending" when implying a promise. The words are deceptive and misleading and could most definitely cause confusion if read by someone desperate enough to believe the money was going to be delivered directly to their bank account. Instead, the advertiser was promoting a book that shows consumers how to apply for grants.

The moral of this story is to be careful of overdoing the promise in advertising. The result could be unwanted publicity that could ultimately destroy your business. In our world of newly discovered transparency, clever or tricky tactics can quickly be labelled as scam by investigative reporters.

To see the story, click here: http://www.news-press.com/article/20090528/COLUMNISTS40/90527079/1112/COLUMNISTS40