As economy sags, advertisers sit on value

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Forget the fancy blandishments of Madison Avenue. An e-mail sent to advertise BR Guest Restaurants gets right to the point. “The economy stinks,” the subject line begins. “Twenty per cent off online gift card purchases.”

Since the fall, many marketers have been appealing to worried consumers by acknowledging that times are tough. Campaigns for everything from cars to food to clothing have played up saving money rather than status or fashion.

Now, with consumer spending slowing further—as evidenced by the lackluster retail sales data—there is a noticeable increase in pitches that are focused on value.

For instance, readers of the April 14 issue of In Touch Weekly magazine will find ads for the NYC New York Colour cosmetics sold by Del Laboratories (“You’re beautiful and smart. Why pay more?”), the TreSemme line of hair care products made by Alberto-Culver (“Curls you’ll love. A price you’ll adore”) and the $1 Spicy Chick’n Crisp sandwich sold at Burger King.

“Value is a big part of the equation for fast food,” said Rob Reilly, partner and co-executive creative director at a Burger King agency, Crispin Porter & Bogusky in Miami, part of MDC Partners, which is creating commercials for a new menu item, the Cheesy Bacon BK Wrapper, priced at $1.39 each.

“As the economy struggles, people still have to eat,” Reilly said. “You want to get into the value game, because it’s a nice way to drive traffic.”

The May issue of Redbook magazine carries five advertisements that speak to consumers whose mind-set is recessionary. The Suave hair care range owned by Unilever asks women to “Say yes to beautiful without paying the price.” Wal-Mart promises “brand-name bras at a great price.”

And Home Depot entices shoppers with an “exclusive 15% discount” on Bali window shades and blinds.

“All the research we are doing says absolutely there is concern about the economy,” said Bill Koenigsberg, chief executive at Horizon Media in New York, an agency that works for marketers like Ace Hardware, Geico, Harrah’s and Jack in the Box.

As a result, “you’ve got to tell it like it is” in ads, he said, rather than avoiding the economic elephant in the room.

In a twist, some advertisements about the sagging economy are centered on the efforts to improve the sagging economy, notably the federal stimulus plan approved in February.