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Are Ad Agencies Responsible for the Recession?

July 08, 2009

Posted by: Kelly Kilpatrick in Consumer

A recent Harris Poll revealed that 66% of Americans think that advertising agencies have some responsibility for the current economic recession. Why, you ask? Because they caused people to purchase things they couldn’t afford. Ignoring the obvious debate about individual responsibility, this could have repercussions on consumer’s receptiveness to advertising.

With this knowledge, advertisers will need to think differently about how they address their consumers and how they position their products. Here are 4 things to consider in the short term given this new insight into the consumer mindset:

1 - Move away from glamour and showcase value. Value doesn’t need to just be about low price; it’s also about the benefits of your products. Demonstrate product benefits that outweigh your competitors. For premium products, it’s important to show why the product is worth the cost.

2 - Rely on the stability of your brand. In times when consumers don’t know if their favorite products will be there tomorrow, a company that is economically stable and has a long history has more appeal. In fact, while consumers place some blame on advertising agencies, 48% of US adults think that a company who stops advertising is in trouble.

3 – Coupons and product samples can increase the value to consumers and reduce the risk involved in trying new brands. This will be particularly important as consumers continue to be budget conscious and look for ways to cut back.

4 – Be straight forward. Avoid any messages that could be perceived as manipulative. With consumers pointing a blaming finger at advertising, they’re going to be particularly aware of any messages that could be viewed as manipulating them to buy products they may not need.

As the economy begins to turn around, so will consumer mindsets. Keeping an eye on economic indicators will help you keep in line with consumer attitudes while you continue to evolve your message.