Mad 4 Blog

It’s Monday morning. And as I do every morning, I pour myself a cup of Starbucks and sit down to read The Miami Herald. There was a time, 30 years ago, when the paper was thick and robust. Filled with ads, news stories, inserts, and the like. But like millions of Americans throughout the country, the daily paper has gotten noticeably thinner. With little in the way of investigative reporting. Little advertising. And for many people, decidedly fewer reasons to subscribe.

Certainly, the continued growth of the internet as a news and information source, especially among younger and  time pressed audiences, has contributed to declining readership and lower newspaper subscriptions. With it has gone the investigative reporters who used to help keep corrupt politicians in check. Also gone are the advertisements from department stores, appliance stores, jewelry stores, tire stores, banks, auto dealers, and countless others who have found more cost-effective, non-traditional media channels to build their awareness and engage customers.

Of course, as more advertisers pull out of the newspaper, as more readers cancel their subscriptions, as more of the product gets less important, newspapers must cut costs even further. That means fewer local reporters and more reliance on national press agencies. In fact, this past Wednesday in the  main section of The Miami Herald there were 11 stories from Miami Herald Wire Services, 3 stories from The Washington Post, 6 from Associated Press, 3 from McClatchy Wire Services, 1 from Firmaspress.com, and 3 from The Miami Herald.

So what’s the answer? Well one possible strategy is to “rollup” the news resources of every major newspaper in the country to act as one large news bureau. Not just AP and other wire services, but local reporters in local markets sharing their juicy investigative reporting and news stories with the top newspapers in the country.
Miami’s reporters sharing their local and Latin American stories with New York and vice versa. Los Angeles with Chicago. Houston with Atlanta. And so on and so on.  Now instead of one major newspaper in one major market having a staff of 3 investigative reporters seeking fresh news, they have 25 times that amount, making their newspapers more robust, more relevant, more interesting, and giving advertisers and readers more reason to purchase. Now add to that news content 25 times more “Lifestyle” content, 25 times more “Business” content, and 25 times more “Sports” content from 25 major newspapers sharing among themselves and you’ve now got a newspaper product that has far greater appeal to those searching the web every day, or for those who want original, fresh content from around the country.
Now, if this “rollup” strategy is successful, there’s another revenue producing idea. Offer national advertisers a discount to purchase ads in 25 newspapers instead of just a few. Give them the ability, like television networks, to place an ad in 25 markets at the same time and reach 40+ million consumers at once.
It’s time local newspapers put their stubborn independence aside. Time to discard their age-old pricing models. Time to go beyond ego and start thinking about survival. If they can get national advertisers like Proctor & Gamble, Nissan, Toyota, Coke and others to buy newspapers at a significant discount, it sure beats printing a daily paper with no advertisers, doesn’t it? And when the advertisers return, the readers will follow. And when the readers return, so will profitability!

According to the latest consumer trend study published by Trendsspotting.com, the 2009 recession was a blend of fact and hype. And despite the fact that many economists seem to believe it’s coming to a close, that may not be the case, according to real analytics of spending in such sectors as food and beverage, travel, apparel, technology and education throughout the United States.

The report also indicates that consumers may be wary of marketing that plays into the recession scare, tired of being told what’s going on in their own wallets and how to budget their hard-earned dollars. This reaction is as if to say: ‘You don’t know me!’

In fact, as mentioned in our article about women spenders, other analysts are coming to a similar conclusion when it comes to holiday shoppers this year. Although the recession has affected how women budget their gift-buying budget throughout the year, and deep discounts will still hold an appeal, women are frustrated from the year’s rigid penny-pinching and may be just as likely to cave and spend periodic full-price amounts (especially when they are treating themselves) throughout the final weeks of 2009.

But how do these retroactive reports compare to early projections of consumer spending in 2009? Here are some year-old predictions from the Trendsspotting.com blog:

“The recession will put consumers in a more powerful position.”

“The recession almost seems like a blessing because [people] are now forced to readjust their values and make different choices.”

“Social networks will flourish as a result of the economic crisis.”

“The credit crunch is also adding fuel to more folks doing it themselves, DIY.”

“People will go to high-priced designers to look like they’re not spending a lot of money, but looking lavish will seem emotionally wrong.”

“When times are down, people want to lift their spirits. […] Americans will be working more and playing less.”

Of course, not every prediction was set in stone. For example, the site predicted that “dwindling budgets [will] suddenly make low-cost social media look like the pretty girl at the ball” AND “advertisers will want to buy advertising on big, well-known websites.”

Progressing into 2010, it will be interesting to see how experts predict the new national mentality on spending on the heels of such a tumultuous economic year. Will Americans continue to keep a hawk-like visage on their bank accounts? Or will consumers increase their spending in a year that feels less scary, with much less scare-tactic marketing? Only time—and precise analytic surveying—will tell.

Mad 4 Marketing has always emphasized the importance of marketing to women, who are often put in charge of budgeting and spending in a family scenario. In fact, more than 80% of all consumer purchases are made by women. This holiday season, we’re keeping an eye on the shopping trends of female shoppers, to see how the recession is affecting annual gift-buying practices. As guessed, this year may show some changes in trends.

Three marketing analysts recently conducted a study to see how women plan to accomplish their holiday shopping after this rough economic year. Mary Lou Quinlan, Jen Drexler and Tracy Chapman—partners at the consultant agency Just Ask a Woman—surveyed 2,000 females for their thoughts and feelings about shopping for gifts in 2009. Based on those results, here’s what to expect in coming months:

•    Women have started shopping earlier this year. Spending gradually throughout the year means women may have accomplished most of their shopping, and may not be drawn to last-minute sales with the same fervor of previous seasons.

•    Women are eyeing deep discounts. Even those with bigger paychecks may be feeling cautious in this economic climate, and may eschew any full retail pricing. Many say they’ll shop with cash rather than credit, which can also cap spending.

•    Gift cards are a hot item for 2009. They’re convenient to purchase, easy to wrap and less likely to be returned. Items that share such traits may share in popularity; women are looking for an easier, more predictable shopping season this year.

•    Yes, women will be cutting back this year. Spending will not only be more conservative, but the amount of presents bought may be cut back overall. Women may buy single, special gifts with more meaning rather than buying in bulk.

Despite survey results, analysts agree that by the time the holidays come around, women may be sick of perpetual frugality. While spending on others this season, it’s likely female shoppers will look for excuses to treat themselves. Offers which include something extra for the spender may be especially well-received.

Ready to plan your end-of-year marketing strategies, and start out on the right foot with female consumers in 2010? Contact Mad 4 Marketing to learn how women save, spend and shop—and how to advertise to ensure their needs will be satisfied by your business.

The late and great WC Fields once said, ‘Never work with children or animals’, and while some may believe that to be good advice, you might want to think seriously about employing them in your advertising.

Emotion is a very powerful tool and using it to create a connection with the consumer is, in the long term, even more important than behavior triggering marketing tactics such as free trials and price-cut incentives. When your customer relates to the brand, rather than just to an offer, that is the basis for developing brand equity, which manifests as customer loyalty. Coca-Cola loyalists do not choose Coke over Pepsi by price. In fact, one way to look at brand equity is the degree to which customers will pay a premium for a particular brand, over the brand’s competitors.

For the creative team here at Mad 4 Marketing, evoking consumer emotion has always been a top priority, both in B2C and B2B markets. Experience shows that connecting emotionally has a quantifiable dollar value.

Think about the many forwarded emails featuring babies or animals that land in your inbox every week. People like the stuff. Truthfully, they go a bit nuts. There are even websites like Cuteoverload.com devoted to cute imagery where thousands of people go every day to get their daily dose.

While not the right note for every company, you just can’t deny that adorable images arouse our emotions. In doing so, they also help to build brands. Ameritrade cashed in on ‘cute’ with its series of talking baby commercials – one of the most popular spots of this year’s Superbowl. Geico also knows about the competitive advantage gained by cute things – not to mention that fact that cute things are memorable. Who could forget that cheeky little green gecko?  The brand equity associated with Geico’s gecko is $4.5 Billion. They’ve tried to repeat that success by personifying a stack of money in their new campaign.  By making a stack of money cute, it’s instantly recognizable. Brand awareness is a step on the path towards brand preference.

But whether or not puppies or babies are featured in your advertising, an emotional connection is key. A powerful, emotional bond with customers can take your relationship to another level. If you’re lucky, it could turn into one that makes consumers your own brand champions – advocates so passionate about your message (or the delivery of that message) that they actively broadcast or webcast it themselves by posting a link to a commercial on YouTube or on their Facebook page.

So, ask yourself, do your marketing messages communicate with your consumer on an emotional level?