What the Meltdown Means
Ten Things You Can Learn From '70s Recession
Bradley Johnson Digs Through the Archives to See What Marketers, Media and Agencies Did Right and Wrong in the Past
LOS ANGELES (AdAge.com) -- Stock watchers and economists draw stark comparisons between the 1970s and now as conventional wisdom grows that we are entering a period of prolonged darkness like the malaise then.
Credit Crisis Knocks Down Domino's Franchisees
Taco Bell, Pizza Hut, KFC Having Harder Time Obtaining Loans
CHICAGO (AdAge.com) -- From Domino's to Yum Brands and beyond, the credit crisis is sweeping the fast-food industry, resulting in increased scrutiny for loans, delayed construction and even some store closures.
Consumers: In Local Banks We Trust
Overall Confidence in Industry Plummets to 21%, Lowest in Decades
YORK, Pa. (AdAge.com) -- Who has faith in big banks? Not many consumers these days, and that's driving people into the arms of their local institutions.
Stocks Take Another Dive; AdMarket 50 Down 6.2%
Standard & Poor's Puts GM and Ford on Creditwatch
LOS ANGELES (AdAge.com) -- The Dow today plunged 7.3% to 8,579 points as frightened investors ran for the exits. This was the biggest one-day percent drop since the October 1987 crash (when the Dow plunged 22.6%). The Dow Jones Industrial Average is at its lowest point since 2003. Meanwhile, The Ad Age/Bloomberg AdMarket 50 tumbled 6.2% today, reaching its lowest point since 2003, as 39 of the index's 50 members -- major marketers, media and agency firms -- hit 52-week lows.
Wreckage Far and Wide as Dow Tumbles
Publicis Drops 13.5%; Entercom Down 11.2%; Yum Brands Down 8.1%
LOS ANGELES (AdAge.com) -- Finally, some happy news: The Dow on Monday fell only 370 points to close at 9,956. The Ad Age/Bloomberg AdMarket 50 tumbled to its lowest intraday low since May 2003 before recovering much of its one-day losses. The wreckage was far and wide, with 28 AdMarket members -- major marketer, media and agency stocks -- sinking to 52-week lows during the day.
Consumers Curtail Consumption
Exclusive: Surveys Show Americans Texting Less, Brown-Bagging More
NEW YORK (AdAge.com) -- The financial meltdown that's shaken the American economy to its core has already affected consumer spending, and in the coming months will make consumers more tightfisted when it comes to eating in restaurants, traveling and shelling out for big-ticket items.
The More-for-Your-Money Race
From Home Depot to Red Lobster, Marketers Pour on Price Cuts and Promos in Faltering Economy
CHICAGO (AdAge.com) -- Marketers across the board are dialing up the more-for-your-money messaging in an effort to coax cash-strapped customers into opening their wallets, and price cuts and promotions are creating a domino effect as companies chase best-deal status.
Wal-Mart Grinning Big Through the Tough Times
Sales, Margins and Stock Price All Up -- but What's the Reason Behind the Marketing and Merchandising Miracle
BATAVIA, Ohio (AdAge.com) -- Is Wal-Mart's recent run of improved results more about the marketing or the economy? Most signs point to the economy, though economic distress has dovetailed nicely with the marketing.
States Use Tough Times to Tout Their Lotteries
Governments Alter Messages, Employ Social Networks to Reach New Audiences
NEW YORK (AdAge.com) -- State governments are taking marketing of their lottos more seriously than ever, with different pitches and value-added offers such as gas discounts with purchase.
Execs Offer Their 2 Cents on $700B Bailout Plan
Most Expect Consumers to Remain Cautious
NEW YORK (AdAge.com) -- Marketing-industry executives said the rescue bill could provide some stability, but spending, whether it be consumer spending or advertising spending, will likely remain under pressure.
How Local Media Feel Recession
Advertising May Be Cut as Regional Markets Take Impact of Credit Crunch
NEW YORK (AdAge.com) -- Unlike the last recession around 2001, when local markets stayed relatively insulated from the fallout of the dot-com bust, they are anything but immune to this one. And that's bad news for local media.
Celebrity Cruises' TV Campaign Delayed
Is Latest Move More Bad News for Element 79?
CHICAGO (AdAge.com) -- Amid the stock market tumble and economic uncertainty over the proposed government bailout of the financial industry, Celebrity Cruises has postponed shooting of a suite of planned TV ads, according to two people familiar with the matter.
Worried Buyers Hit the Brakes on Ultra-Luxury Car Purchases
Sales Drop Attributed More to Psychology Than Finances
DETROIT (AdAge.com) -- The rich may be different, but maybe not all that different in the current economic climate. Sales of new vehicles in the $100,000 range are skidding, for reasons "more psychological than practical," said Susan Jacobs, president of auto consultant Jacobs & Associates. She said wealthy Americans are losing "that splurge mentality" in today's souring economic climate and predicted the top of the market will remain weak for some time.
Tesco, Virgin Move Into U.K. Mortgage Market
Unlikely Lenders See Opportunity as Banks Falter
LONDON (AdAge.com) -- As storied financial institutions topple and consumers struggle to get loans and keep up with payments, Tesco and Virgin Group are going into the mortgage business. Although the U.K.'s biggest supermarket chain and Richard Branson's Virgin may seem unlikely financial institutions, both companies say the time is right to offer more choice to consumers who have rapidly narrowing options.
PR Pros Offer Pointers to 'Bailout' Backers
For Starters, 'Rescue' Might Be a Better Term
NEW YORK (AdAge.com) -- Better marketing could have delivered a bailout package by now. Indeed, according to some communications professionals, something as basic as not calling it a "bailout" may have meant faster approval.
AdMarket 50 Sinks 6.4%
Package-Goods Giants Fare Relatively Well on Dread-Inducing Day
LOS ANGELES (AdAge.com) -- The Ad Age/Bloomberg AdMarket 50 crashed 6.4% Sept. 29, its biggest percentage drop since the index began in 2000. Still, the AdMarket -- an index of 50 marketer, media and agency stocks -- is "only" at a two-year low. The AdMarket -- and Dow Jones Industrial Average, for that matter -- remain far above the post-bubble lows seen in 2002.
Citi to Remain Largest Bank After Wachovia Acquisition
Will Also Keep Place as No. 1 Marketing Spender; Brands to Remain Intact Until Next Year
YORK, Pa. (AdAge.com) -- With the harried wave of mergers and acquisitions in the financial sector, rankings in the bank industry are changing almost daily. Citi held the title of country's largest bank until No. 3 Bank of America prepared to leap over it with its pending purchase of Merrill Lynch. However, now that Citi has declared its intention to buy Wachovia, it will remain largest after the deal.
Second-Quarter Spending Plunge Worst Since 2001
Buyers and Sellers Cautiously Optimistic for Rest of Year, but Only for Select Media
NEW YORK (AdAge.com) -- Think last week was rough? Turns out the first half of the year wasn't anything to crow about either. Figures released by TNS Media Intelligence show that the second quarter of 2008 saw the steepest quarterly drop in ad spending since 2001.
Retailers Brace for Season's Beatings
Amid Grim Sales Forecasts, Target, Costco, Others Hasten Christmas Push
NEW YORK (AdAge.com) -- With an escalating consumer-credit crisis, five fewer shopping days, looming retail bankruptcies and the lowest projected sales growth in years, it's going to be a cutthroat Christmas.
Marketers Hit Hard by Credit Crisis
Lack of Funding for New Rollouts, Deal Making and Store Openings
NEW YORK (AdAge.com) -- With banks in bunker mode and hoarding cash, marketers are beginning to feel the effects of credit drying up.
Credit Crunch Takes Bite Out of McDonald's
Planned Coffee Rollout Hit by Banking Crisis That Is Restricting Loan Capital
CHICAGO (AdAge.com) -- The banking crisis is threatening to take a rather surprising hostage: McDonald's big-budget coffee rollout.
Don't Miss the Lessons to Be Learned From a Major Crisis
Four Takeaways for CMOs From the Wall Street Meltdown
Every CMO should look in horror at what has happened to some of the most venerable brands on Wall Street, as recent events have perhaps irrevocably damaged the reputations of businesses and the industry overall.
Chase Will Begin to Rebrand WaMu Branches
Some Advertising to Begin Next Week Explaining Changes Following $1.9 Billion Acquisition
YORK, Pa. (AdAge.com) -- Now that JPMorgan Chase has shelled out $1.9 billion for beleaguered Washington Mutual, the deal will ultimately shelve the Washington Mutual name in favor of the Chase bank brand.
Wall Street Meltdown Spikes Ratings at Financial News Media
Record Traffic to Web Sites, Cable Networks
NEW YORK (AdAge.com) -- Last week's Wall Street fiasco turned bad news into good news for several media companies. A study from independent media agency Horizon Media finds that CNBC, CNN and The New York Times, among others, saw some of their biggest ratings and online-traffic spikes in the hours and days following the Sept. 14 news of Lehman Brothers' bankruptcy and Bank of America's purchase of American International Group.
CEOs: How to Confront the Financial Crisis
BBDO's Andrew Robertson and Others on the Challenges Facing the Industry
NEW YORK (AdAge.com) -- To no one's surprise, the first topic of discussion at Advertising Week's CNBC CEO Summit was the meltdown of the financial markets last week.
Woes Go Well Beyond Financial Flux
Marketers Take Some Solace in the Fact That Consumer Confidence Doesn't Have Far to Fall
BATAVIA, Ohio (AdAge.com) -- The good news for marketers: The 500-point drop in the Dow last week didn't deal any serious new blows to consumer confidence. The bad news for marketers: Consumer confidence was already shot, and the market's sickening roller-coaster ride didn't help.
Top 100 Global Brands Hemorrhage $67B in Value
As Consumer Readjust Priorities, Marketers Shift in Brand Finance Report
NEW YORK (AdAge.com) -- The flailing economy has drained $67 billion in value from the top 100 global brands -- even before the investment-bank crisis last week.
What the Holding Company Chiefs Are Saying
Sorrell, Wren, Roth, Levy and Nadal Give Their Outlook on the Strengths of Their Ad Networks and Clients
NEW YORK (AdAge.com) -- Advertising Age spoke with WPP's Martin Sorrell, Omnicom's John Wren, Interpublic's Michael Roth, Publicis' Maurice Levy and MDC Partners' Miles Nadal to find out how the heads of the major holding companies are gauging the strength of their agencies and clients following Wall Street's meltdown.
For Holding Companies, Downturn Will Slow Already-Slow Deal-Making
Smaller Shops in Need of Capital Might Wind up Losing Independence
NEW YORK (AdAge.com) -- Megadeals such as Publicis Groupe's buy of Digitas and WPP Group's purchase of 24/7 -- already few and far between -- are set to become even more of a rarity in the coming months, thanks to the financial-market meltdown.
Nightmare on Wall Street a Setback for Brand McCain
But Some Feel Upheaval Will Leave Voters Reluctant to Change
WASHINGTON (AdAge.com) -- Political pros from both parties are predicting the economic meltdown will rewrite the presidential election. And the latest version of the script doesn't exactly favor John McCain.
Financial Advertisers Need to Strike Reassuring Note
Brand Specialists Advise Marketers to Keep Lines of Communication Open
NEW YORK (AdAge.com) -- If you're in financial-services marketing, what do you do now that levels of distrust, worry and anger are growing against the sector as a whole?
Media Owners Resigned to '08 Shortfall, Brace for Tougher '09
And Not Even Sports Sponsorship Is Immune From Wall Street's Woes
NEW YORK (AdAge.com) -- Many media sellers finally gave up on meeting their 2008 targets last week, after the continuing financial meltdown sent Lehman hurtling to liquidation, Merrill into a fire sale and AIG into the arms of the federal government. Now media players are girding for intense battles over share of shrinking ad budgets.
Self-Absorbed Media Missing the Biggest Stories of Our Time
Sure, We Can Talk About Who Said What About Lipstick, but Now's a Good Time to Refocus the Conversation
There can be a positive in this mess, if we hear the alarm bell and confront the real challenge -- the need to rebuild the American economy for the 21st century.
Wall Street's Angst Is Now Main Street's
Financial-Services Brands Must Regain Value and Build Trust Not Only in the Business Community but Also With Consumers Amid Banks' Implosion
There are some brands within the financial-services sector that are both Wall Street and Main Street -- such as Merrill Lynch -- which for business, service or reputation reasons, manage to cross boundaries into the general consciousness.
'Powerless' Consumers Spend More
But Responsible Brands Can Strengthen Relationships by Helping Customers Cope With Threats Appropriately
While consumer purchases can serve a compensatory function is not new, Kellogg School of Management's Adam Galinsky and Derek Rucker have recently unearthed a previously unstudied form -- one that is fueled when consumers experience a lack of power or control.
How Creativity Can Carry Your Business Through a Recession
Here's What a Some Who've Been Around the Block a Few Times Have to Say
In these pages, we've read about the ways in which this sort of environment affects ad spending. But what happens to creativity in times like these?
Economy May Be Rotten, but It's Ripe for Package Food
Campbell, Kellogg, Kraft Sales Jump As Consumers Eat at Home More Often
CHICAGO (AdAge.com) -- To hear the package-foods industry tell it, it's been a banner year.
With U.S. Economy Reeling, Advertisers Pin Hopes on Emerging Markets
China and India Still Strong, but Growth Slowdown Is Feared
HONG KONG (Adage.com) -- The disastrous jolt to U.S. financial markets is putting pressure on multinational marketers to do well in big emerging markets such as China and India to offset the sluggish U.S. economy.
AIG Pulls Flight of National Corporate Ads
Campaign's Theme Was 'Strength to Be There'
YORK, Pa. (AdAge.com) -- In the midst of a government bailout, American International Group is pulling all of its corporate advertising through the end of the year -- all of which is themed, ironically, "The Strength to Be There."
Luxury Market Braces for Slowdowns
Campaign's Theme Was 'Strength to Be There'
NEW YORK (AdAge.com) -- With massive layoffs expected in the banking industry and the economy in turmoil, marketers are beginning to fear that consumers of luxury goods will be snapping their wallets shut.
Troubled Financial Cos. Must Talk to American Public to Quell Fears
Analysts Say Ad Messages Need to Convey Role Brokerages, Banks Play in Economy
NEW YORK (AdAge.com) -- News of Lehman Bros. filing for bankruptcy and Bank of America buying Merrill Lynch rocked the stock market today and dominated the news cycle for the past three days. But the simple fact is that many Americans probably couldn't tell you just what exactly it is that either of these troubled and storied financial institutions do or what this all means for their investments. But the news scares them regardless.
Media, Marketers Take a Hit on Wall Street
But Coke, Package Goods Hold Their Own as AdMarket 50 Reacts to Finance-Giant Woes
CHICAGO (AdAge.com) -- Coca-Cola Co., which edged up 0.5%, is the only member of the Ad Age/Bloomberg AdMarket 50 to post a gain today as the markets reacted to the news about Lehman Bros.' bankruptcy, the sale of Merrill Lynch to Bank of America and American International Group's quest for funding.
How Wall Street's Black Sunday Will Affect Ad Spending
Mad Ave Sees Little Fallout in Short Term but Consumer Confidence Is Big Question Mark
NEW YORK (AdAge.com) -- The news that three well-known firms -- Lehman Bros., Merrill Lynch and American International Group -- are either ceasing to be, being purchased or facing concerns about raising capital rocked Wall Street but so far has had surprisingly few repercussions on Madison Avenue.
