Business

Am I shooting myself in the foot by arguing that the brutality of this recession calls for a major adjustment in the advertising equation – from creative strategies to media, from account management to production costs and values – a change that will affect the way we do business well into the future?

Am I in violation of the unwritten “La-vie-en-Rose” agency rule that stipulates everything is all good, all the time; good news always carries the day and smiling is contagious; in other words peaches and cream para todos?

The recession had a more profound effect on the marketing industry than predicted just six months ago, a new survey from the ANA (Association of National Advertisers) shows. Following up on a survey conducted in August, the second survey conducted on this topic reveals that more companies are identifying cost savings and reductions (93 percent as opposed to 87 percent six months ago) and that 37 percent of respondents today plan to reduce budgets by more than 20 percent, up substantially from the 21 percent of respondents in the first survey.

Setting aside for the moment the fact that no company can succeed by cutting expenses alone, let’s dwell for a moment on the practical necessity of today’s world: cut, cut, and cut some more.

We’re bombarded by it every day of the week. The news media is shoveling a constant stream of bad news to us in the form of economic reports, surveys of plummeting consumer confidence levels, company layoffs, negative earnings announcements and decimated marketing budgets.

Despite its looming demise, the American auto industry dismissed demands for brand reduction in December 2008. Forced by the federal government into a mea culpa that was supposed to include plans for drastic cost-cutting and other reformative measures, GM was expected to agree to eliminate a handful of its brands.

The Western Union Company announced it has appointed product management and consumer loyalty leaders in support of The Americas region.

The settlement in the drawn out Televisa vs. Univision litigation means more than meets the eye as Televisa, as a public company is interested in maximizing its growth opportunities in the US, has now adopted a rational business strategy with a greater chance of success vs the previously in place legal strategy which had a more remote chance of prevailing to gain greater benefits in the US market.

Lower-income shoppers are the fastest-growing income group in the United States and will generate $84 billion in incremental spending during the next decade. The latest research from Information Resources, Inc. (IRI) reveals that these consumers represent an enormous opportunity for retailers and manufacturers during the slow economy, if they understand that lower-income shoppers are not a homogenous group.

I’ve been searching for a “How to survive the recession” self-help type book to provide me with valuable tips and advise that will help me negotiate these difficult times. I haven’t found anything valuable, which leads me to believe that the writer was laid off, too.

And so, unable to find solace from a book, I’ve exchanged thoughts and experiences with various friends and colleagues, both clients and agency people.