Marketers think recession is upon us

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: Let the economists and politicians debate whether the American economy is in a recession. Madison Avenue is already battening down the hatches. Since September, Wal-Mart, the nation’s largest retailer, has built its entire advertising approach upon this bald premise: “Save money. Live better”. Sceptics wondered at the time whether Wal-Mart was fixating on price at the expense of other attractions like fashion or breadth of merchandise.

But the economic problems that followed—falling prices for houses, tightening credit and the gyrations of the stock market—vindicated their decision. Amid consumer anxiety, Wal-Mart weathered a difficult season for retailers, reporting a 2.7% increase for December while many of its rivals posted losses.

“We don’t profess to have any prophetic abilities to call the economy any better than the folks who do it for a living,” said Stephen Quinn, Wal-Mart’s chief marketing officer. Rather, “when gas prices spiked,” he added, “we saw the pressure this put on our customers.” Those customers can find many companies following Wal-Mart’s lead, with campaigns speaking to Americans as if a recession was already under way.

But while marketers may be looking to adjust the contents of their campaigns, forecasters believe ad spending will remain strong as a recession looms.