What the Meltdown Means

Will the Collapse of Storied Financial Institutions Be Felt in the Marketing and Media Worlds?

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The latest news and analysis from Ad Age's continuing coverage of the Wall Street meltdown and what it means for marketers.

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

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

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

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

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

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

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

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.

CEOs: How to Confront the Financial Crisis

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.

Advertising Week 2008
CEOs: How to Confront the Financial Crisis

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 CEOs Are Saying

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

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

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

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

'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

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

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

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 Slowdown

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

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.

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