The Human Toll

Advertising folks, while often maligned and denigrated, are resilient and resourceful.

To describe a recent visit to Ford’s Dearborn marketing offices only two words are needed: empty; sad.

Offices, cubicles, meeting rooms, break areas that were once filled with marketing professionals — talented, often dedicated creative people — were devoid of everything except remnants of their former life. Pictures, posters and paraphernalia of Ford, Lincoln and Mercury cars, trucks, SUVs, racecars and concepts were tacked or taped to walls literally waiting for someone to take them down. As it is they are simply fading into history.

Change the venue by simply substituting the name of another automotive brand from the Detroit Three. Only the vehicles change. The emptiness reigns supreme. Even international brands have fallen prey to this economic demon.

Change from the client to the agency side and the situation is duplicated. From the big name, big shops with big clients and big budgets to the sometimes big, but usually small creative services shops and suppliers — layoffs, cut-backs, pink slips, down-sizing, de-hires are epidemic and endemic.

Freelancers, the self-unemployed, who are hired on a project basis, have been virtually eliminated, even though they are not paid benefits. 

One longtime friend and a compassionate owner of a highly successful creative services company was near tears as he described the first time people had to be laid off from his company. “They’re not employees, they’re family,” he said, choking back emotion.

A former associate creative director entering advanced middle age, with a blended family ranging from pre-schoolers to near college-age kids, told me he was “terrified” of his future ability to earn a living … anywhere!

Professionally and personally, the misery is staggering in human terms. For those who have worked in automotive advertising industry there literally is no vocational future until the economic situation changes. 

Those who are still working have more work to do with fewer people and less money. But advertising folks, while often maligned and denigrated, are resilient and resourceful. There is personal and professional pride and reputation at stake. One dubious benefit will be better creativity with automotive advertising that is strategically precise and tactically effective.

Media Budgets

Auto ad budgets were not just cut; they were slashed, financially eviscerated. Of course there’s been extravagant, even excessive spending by the auto advertisers and their agencies in the past, but not today. Nothing is sacred. Profligate has become parsimonious.

The knee jerk response to a sales decline is to cut media budgets. Broadcast television, cable television, consumer magazines, auto enthusiast publications, Internet, newspapers, billboards, radio and of course public relations represent significant amounts in marketing budgets.  These are big numbers most corporate bean counters have never liked or appreciated. Marketing is what their wives do on Saturday’s.

The Nielsen Company, the marketing and media research firm, reported measured advertising was down 2.6% in 2008, compared to 2007. U.S. ad expenditures declined almost $3.7 billion to a total spend of $136.8 billion in 2008. This drop despite the big budget Summer Olympics and political campaigns season.

Not unexpectedly, the precipitous drops were in print. Local and national newspapers declined 10.2% and 9.6%, national magazines fell 7.6%, auto enthusiast publications dropped 13.8%. Even the darling of media mavens, new media – aka Internet – was down 6.4%, broadcast television (ABC, CBS and NBC) lost 3.5%.

Automotive advertising was the hardest hit. The Big 5 collectively dropped from $8.7 billion in ’07 to $7.1 in 2008. GM’s drop was 14.9%, Toyota – 6.6%, Ford – 28.5%, Honda 2.8% and Chrysler 31.2%.  National and local auto ads lost 15.5% overall in 2008.

This year is still being tallied, but the early reports are, at best, grim. The future is murky, boarding on morbid. Daily newspapers are an endangered species. At least two auto magazines will fade away. A shake-out of unsupported Internet auto sites will simply cease operations. New metrics will be applied to every ad, release, promotion or event to get the biggest and best ROI.  Stay tuned.

Now Airlines Are Picking On Us!

Things aren’t bad en’uf. Now a couple airlines have mounted denigrating and demeaning campaigns. Jet Blue has taken a poke at the Big 3 execs that flew to DC in private jets in a new site, welcomebigwigs.com, Southwest is featuring ads headlined, “Why drive when we have these great fares for you.” When our industry turns around, we should run ads slamming them for charging for pillows, blankets, snarky service, crappy food, dirty bathrooms. Fair is fair.

Audi’s 90-minute Movie is a Commercial too 

Truth in 24, Audi’s quest for winning the famous Le Mans 24 hour race has its national premiere tonight at 8:00 p.m. on ESPN.  If you’re a fan of NFL Films productions of pro football and are a race fan, this is a must. It puts you in the pits and the stands and behind the wheel. Augmenting the visuals is the voice of Jason Statham, of the Transporter series and Audi’s Super Bowl commercial. Watch it or TiVo it.  Commerce meets cinematic art in an exciting format.

Funny Car Commercial of the Week

The inability of women drivers to cope with traffic conditions and parking situations has been well documented on viral videos and clips on You Tube. Mazda took the negative demeaning perceptions and made them positive in a funny and engaging commercial. Just click to enjoy.

Odd Article of the Week

An article in Advertising Age noted GM dealers were demanding national advertising. That’s an oxymoronic statement. Dealers hate national ads. Using the usual form of local auto ads, does that mean Rick’s gonna appear in a commercial? Nah. He’s had enough face time on television recently.

Dumb Campaign of the Week

Saturn’s “We’re still here” campaign. Consumers are gonna respond to this negative with, “for how long?” Not just dumb … bad. See ya, next week – Marty