Slumping Economy Becomes Theme in Ads

Advertisers try to be sensitive to consumers' money issues.

By Lilly Rockwell

This holiday season, as retailers are urging shoppers to buy, the sluggish economy has become an ingredient in television advertising campaigns.

Retailers that would normally emphasize their reliable products or customer service in their advertising are trying to be in-step with the times by highlighting prices and acknowledging that times are tough.

Clothing retailer L.L. Bean, for instance, which in past years focused on how durable its products were, has focused almost exclusively on prices in its most recent holiday campaign.

In one advertisement, crafted by Austin’s GSD&M Idea City, a woman is shown wearing a microsuede quilted jacket while the price ($99) flashes across the screen. A voice-over declares, “Great gifts, exceptional value,” and viewers are told they will get a free $10 gift card with every $50 purchase.

“Being sensitive to the economic stress a lot of individuals are going through is very prudent,” said John Ellett , chief executive of Austin ad agency nFusion Group. “But how blatant you need to be can vary; you don’t need to beat people over the head reminding them of how bad it is.”

Marshalls, another client of GSD&M’s, has developed television commercials that describe how Marshalls receives items in its store, usually from a manufacturer that needs to unload extra merchandise. One ad mentions the “crummy economy” in a voice-over. GSD&M referred calls on the topic to its clients.

“We are really the best solution in this economy for shoppers who want low prices but don’t want to sacrifice on quality,” Marshalls spokeswoman Laura McDowell said.

Austin ad agency Door Number 3, which works with Hyatt Regency Hill Country Resort and Spa in San Antonio, is finding that even luxury retailers have to be price sensitive.

“What happens with luxury brands is, when you bring down the price, it’s hard to bump it up again when the economy rebounds,” said Prentice Howe, a principal and creative director at Door Number 3.

It’s better to offer “added value” without lowering the price, Howe said. Extras can include a free round of golf or complimentary spa service.

Door Number 3 also developed a holiday campaign for the Blood Center of Central Texas, urging people to donate a pint of blood during the holidays.

“People don’t have that extra income to put to their favorite charity,” Howe said.

Lee Gaddis, the principal and chief operating officer with interactive ad agency T3, whose clients include UPS Inc., J.C. Penney Co. Inc. and The Wall Street Journal, said that almost all of his agency’s clients “have huge issues with the economy.”

“Fortunately, we have not had a real direct impact on this, and we are trying to be very prudent, cautious and financially responsible,” he said.

T3 conducted layoffs earlier this year after losing hotel company Marriott International Inc. as a client.