Originality Pays When Developing Value Themed Messages

For more than a year, the U.S. consumer hit by the recession has changed the way he or she shops: a focus on value for money has led to some dramatic shifts in behavior, which I think  will last far beyond the current economic environment.  With 80 percent of Americans saying they were stressed due to the economy, savvy marketers have shifted their marketing to appeal to consumers watching their money more closely.

But have those ads been successful?  Nielsen IAG examined 67 such ads from 11 national advertisers and found in short, value-message and recession-themed ads did not break through TV ad clutter at higher than ordinary rates.  In fact, ad recall of the 67 ads evaluated was at rates lower than historical averages for the 11 advertisers.  Packaged goods manufacturers saw no decline, while retailers registered minor declines.  Financial service, insurance, auto and telecom advertisers posted significant declines.

However, being first with a high-impact break-through message did play an important role in making a difference with consumers.  Case-in-point:  Hyundai.  Hyundai was first to address the anxieties of potential car buyers head-on by delivering a unique, innovative and timely buyer protection offer, allowing the owner to return the car without damaging his/her credit score in the event of job loss.  Proving that getting a jump on competitors with a unique value message pays off, the Asian carmaker returned far better sales results than its domestic competitors.  Its sales were down just 1.5% in March 2009 vs. 50% for the American rivals in the same month.  Yes, in a deep recession, success may be measured in terms of minimizing revenue losses.  But the Asian carmaker continues to see U.S. market share gains.

Although, aesthetics, visual creativity and design of ads are important, it can easily be topped and it does not  always make the impact advertisers want.  Get the message right and be first and you’ll have a lot more opportunity to gain market share in this economy.