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Retailers are posting quarterly profit drops of upwards of 50 percent, and consumers are downright pessimistic, holding on to their wallets in ways that border on the historic.

Let’s face it, how your business responds in this economy will determine if you survive. If you don’t respond in the right ways quickly enough, you might be toast.

Companies that survive to see the light after the clouds lift are paying even closer attention to the customers they do have – loyalty is big now – and giving them a good value for their dollar. These are the messages your advertising and marketing need to be pushing.

Here’s a great piece from a consumer-engagement expert on how to reposition yourself and your business expectations in these trying times. It examines consumers trends like “want vs. need” and “smart spending”  – and how you can take advantage of them.

The deadline is today for your chance to get some hard-earned recognition for your advertising efforts by entering the American Advertising Federation of Northern Illinois’ annual ADDY awards.

Click here for entry information.

Entries can be dropped off at KMK Media Group, 1111 South Alpine Road, Suite 300 in Rockford. (Here’s some background on the ADDY awards posted last week on ADWire.)

EcoFont! 

Spranq, a Dutch communications firm, has come up with a way to save the environment one blotch at a time. They asked the question: how much of a letter can be removed while maintaining readability? End result, by punching little circles out of each letter while still maintaining full readability, they have created a font that uses up to 20 percent less ink.

Download a free copy of Ecofont, and give thanks to a simple design concept that will give you more blotch for the buck, and keeps cartridges out of the landfills a little longer.

Today’s economy is shifting the floor beneath all our feet, and smart marketers will give their customers something to hold onto while that happens.

Not only are consumers being more discrete with their spending on the extraneous – fancy purses and flat screens – they’re also shifting their habits for the staples like laundry detergent and socks.

And this recession is changing everything in the marketing world:

• Media companies are desperate to stay solvent in the face of declining ad revenues, increasing costs and a digital paradigm to which they’ve struggled to adapt.
• Consumers are scared. If they haven’t already lost their job, they probably know someone who has and are worried. How do you convince someone to buy something when they’re laying awake night?
• Shoppers are shifting their shopping habits. Macy’s customers are going to Target. Target shoppers are going to Wal-Mart. Wal-Mart shoppers are going to dollar stores.

Despite all of this, everyone needs to take a deep breath.

In.

Out.

Repeat as needed.

Because this recession can be an opportunity for your business.

But how do you position your business to survive – even thrive – now?

It’s all about value. Despite the desire to save every penny and not spend anything, consumers need “stuff.” We are still in America after all. (Here’s a great piece in MediPost about shifting trends among consumers.)

What value do you bring to the table? Quality products at a lower price point are always attractive. But maybe you offer a highly trained staff or an extended warranty? If you can offer lower prices AND a good value, fabulous. But if you’ve lowered prices as much as you can, offer value.

Help your customers save money – and/or enjoy a good “value” – and you’ll be tapping into this market zeitgeist.

Now that I have my traditional Monday morning Austin Powers impersonation out of the way, I thought I would share an interesting article I came across. “The Elusive Advertising Clutter“, by Ilya Vedrashko.

We have all heard it before, the average consumer is exposed to “n” advertisements per day. Ever notice you never hear the same number twice? Wonder why? For good reason, Ilya couldn’t find any methodology or a specific source behind whatever studies had arrived at a particular number conclusion. What Ilya found is that a common 5000 number had mutated into all sorts of weird shapes.

So what is an acceptable number of ad impressions we are all exposed to in any given day? Read the full article to find out.

Using social media sites – you know, Twitter, Digg, Ning, Facebook, et. al. – to market your business or other enterprise is hard.

It’s new.

It’s complicated.

And there really aren’t too many “experts” in the field…yet.

You can’t really just upload a video on YouTube and hope it goes “viral” to get measurable, bottom-line results from your campaign.

So what do you do?

Here’s a good piece in BusinessWeek - Debunking Six Social Media Myths – that examines social-media marketing and some good thoughts on how to start thinking about using it effectively.

Ah, the local TV spot. Some good, some bad, some so bad they’re good. So how do you make an effective television commercial? It all starts before even one second of shooting takes place.

Back to Basics: Effective TV Spots

Plan. Edit. Plan some more. – Before you even think about shooting, plan out the script and the shots you’ll need. Less is usually more within the confines of a 30-second shot.

You talkin’ to me? – Be sure you know who your audience is and script your spot to their needs. What would make them interested in what you’re selling?  Always ask yourself – why should the audience care?

Killer copy – A TV spot needs to be scripted tightly and grab the viewers’ attention. This is not the time for the King’s English – though don’t make grammar errors. Spots should be conversational and short sentences will be much more effective than long ones.

One focus - Keep your message simple and clean. Focus on one thing at a time. 30 seconds goes by way too fast for you to throw in everything and the kitchen sink.

Moving Pictures - Make sure your video matches what the announcer is saying. Don’t be talking about your huge selection of hand tools while showing B-roll of your lumber yard. And use people in your spots. Viewers will relate more to other people than sweeping shots of your building or stills of your interiors.

Call to action – Create a strong call to action. You want viewers to buy your product or act on your offer now. Provide a way for them to take you up on your offer too…a website, a phone number, even a directional if you’re in an out-of-the-way location.

Remember the DVR – Digital Video Recorders (DVRs) like TiVo are very common, particularly now that the digital switch has taken place locally. Keep your logo in the center of the screen when possible – that way they’ll at least get the visual when they’re fast-forwarding through your spot.

Also be mindful of sales or other time-sensitive spots. A large number of younger viewers are using DVRs and “timeshifting” their viewing…watching their shows at a later date.

Targeting & Frequency – Once you’ve produced your spot, make sure it’s running on the channels your target audience is watching and with enough frequency to make an impact.

Social media has changed the paradigm of the client-business relationship, with clients finally realizing they are, in fact, the reason why businesses stay open. And they’re demanding faster responses and communication channels that make it easy for them to interact with businesses and brands.

KMK Media Group is responding by creating a Twitter account – “KMKMedia” – that we’ll monitor throughout the day. So if you ever have a question for KMK Media staff about one of your projects – or just about marketing in general – and need a response right away, try “tweeting” us on Twitter.

We’ll keep our ears open for questions and comments by our clients and others and respond as soon as we’re able.

Also be sure to click to “follow” us too, as we’ll be keeping you updated with instant updates about this blog, ADWire, breaking news and other updates.

Don’t have a Twitter account? Just go to www.Twitter.com to sign up for free.

So maybe you’ve lowered your thermostat to save a few bucks. And you still want to read, eat, answer the phone. Plus, blankets have proven just to difficult to figure out. Enter, the Snuggie.

If you haven’t seen the commercial for the Snuggie yet, you likely haven’t watched cable TV at all in the past 2 months. For the uninitiated:

[youtube]http://www.youtube.com/watch?v=2xZp-GLMMJ0[/youtube]

4 MILLION of these have sold already, and there’s a waiting list. So what made the Snuggie such a runaway success?

Frequency - this ad is EVERYWHERE.

Production - whether or not the creators meant it, the spot is bizarrely funny, which immediately makes it a conversation starter.

Viral reach – Because of its almost comical spot, the Snuggie campaign went viral. There are numerous spoofs already – just search for “Snuggie” on YouTube. Most were too ribald to post in the pages of ADWire. And there’s 4,000 members of the Snuggie Facebook fan page and talk show hosts can’t get enough of it.

Right Idea, Right Price – Most people, whether because they’re broke or just more conscious of their energy use, have lowered their thermostats during a particularly cold winter. Plus, the Snuggie is $30 cheaper than its primary rival, the Slanket.

Singular Web Focus - there is only one option at the Snuggie’s website – www.getsnuggie.com – and that option is to BUY A SNUGGIE. No mission statements or About Us pages. Just Buy It.

In today’s economy, your business might have a cash-flow problem…which leads to late payments for your vendors.

Normally, this is an accounting problem, not a marketing one.But, if you get behind on multiple vendors, then you’re at risk to some real reputation damage.

Multiple slow-pays can become a problem for your brand, with your customers and the public at large.

So, if you are late paying a vendor’s bill, here’s some advice on how to manage that communication channel and avoid reputation damage:

• Don’t lie and say “the check is in the mail.”
• Take the phone call from the vendor or respond to the message as soon as possible.
• Be honest when telling the vendor when you think you can pay the bill.
• Don’t ask your employees to lie for you. Show some leadership.

Honesty and responsiveness can make the difference between getting a little more time or being sent to collection (or being sued).

A company, named We POWER, has created a platform that enables advertisements to be placed on wind turbines. Each of the turbine’s air foil blades reflect an image, and as the blades spin, the images appear to move— essentially creating an animated ad. This is just one example of windertising, as I am sure many more will soon follow. Capitalism at its finest.

This weekend, I had the privilege to judge the ADDY® awards for the Peoria, Ill., chapter of the American Advertising Federation (AAF).

Sanctioned by the AAF, the ADDY® Awards honor excellence in advertising and cultivate the highest creative standards in the industry. The competition begins at the local level (Rockford’s submission deadline is coming up on February 20th), with the 210 AAF member clubs nationwide from which local winners proceed to 14 regional competitions, and those winners proceed to the national finals.

We saw some outstanding work – a lot of creative done for Caterpillar, since Peoria is a Company Town – and some that was not-so-stellar. There were a number of entries that made me say “cool,” particularly one that used text messaging in a very creative way in a setting that most local marketers struggle to make interesting – the fundraiser kick-off event.

Based on what I saw in Peoria, Rockford’s ad creative, I have to say, is generally pretty good. We all can take pride in the work that comes out of our city. As can Peoria.

These competitions are the life-blood of local ad communities – consider entering your work so we can all see the quality of work done in Rockford. You don’t have to be part of an ad agency to enter, either. 

Entering the ADDY® competition supports our entire industry, because the AAF and its local and district affiliates use the proceeds to enhance advertising through programs such as public service, internships, advocacy groups, advertising education, and consumer awareness.

So, enter your best work in this year’s ADDYs® – click here to find out how.

Then come to the ADDY® celebration starting at 6:30 pm, Tuesday, March 10. (Click here to register and for more information).

Read a snippet this morning about some grocers taking advantage of their “customer clubs” to get the word out regarding the massive peanut butter recall. Which led me to think about customer loyalty programs and how businesses can use them better.

Customer loyalty programs can have an impact on your bottom line, as long as you regularly contact them with something other than a sales pitch.

Don’t have a loyalty program? Well, it’s probably a good time to start. In a down economy, you need to hang on to your current customers and treat them like gold.

So, aside from a pitch, what can you offer your loyalty program members? Here are some ideas:

• Take a cue from the grocers and keep your customers updated if there is a recall or other important product updates.
• Extend your program’s reach by creating an online forum where customers can swap opinions, best practices, suggestions. This creates an additional level of loyalty to your brand. For example, a sporting goods retailer can be the go-to place for information about local sporting events, first-person product reviews, etc.
• Offer a free white paper written by your experts on an issue that your customers will find helpful in their daily business. Share your knowledge but do it in a way that speaks in the daily language of your end-user.
• Offer a high-perceived-value perk to your loyalty club members that costs you little to nothing to give away. Hotels can offer a deep discount on a room that would otherwise sit empty. This gives their loyal customers a benefit they’re likely to see as very valuable while giving the hotel a modest amount of revenue they wouldn’t normally receive.
• Let them pick their rewards and up the ante as they claim them. Once a customer takes advantage of their first award, dangle a bigger reward to increase their buying level.
• Partner with other companies to create rewards that compliment your respective businesses. A car-repair facility could partner with a gas station, for example.
• Say thank you. A simple thank you can go a long way to creating loyalty. If you don’t already, routinely let your regular customers know you appreciate their business.
• Be open to loyal customers’ suggestions for improvements to your business. Once you change based on a client suggestion, be sure to let them know too. “We’ve listened and changed based on what you’ve said” is a powerful signal that you value their opinions.

There are plenty of other ideas, so take some time to research how you can optimize your loyalty programs, and they’ll become an effective branding and client-retention toolbox.

Which ads did you like?

I personally thought the Bridgestone and Careerbuilder spots were funny:

[youtube]http://www.youtube.com/watch?v=79tMMFja-Fw[/youtube]

[youtube]http://www.youtube.com/watch?v=NUUM3SDX4ik[/youtube]

According to USA Today, the top 5 “most liked” spots were:

1. Doritos – crystal ball
2. Budweiser – circus romance
3. Budweiser – new trick
4. Bridgestone – Mr. & Mrs. Potato Head
5. Doritos – super powers

Click here to see them all, along with the dial turns of the focus group participants. You can see how the spots were liked by men, women, by age and by income.

Wow. What a difference a year makes. This year’s Super Bowl ads were, to be blunt, bad. Blaming the economy may be the easy choice, but I’m here to offer another hypothesis: Has the annual Ad Showcase jumped the shark?

In years past, the Super Bowl was reliably one of – if not the – biggest audiences on television. Hence, advertisers dumping millions into a 30-second audition for those eyeballs. The more who watch our commercial, they reasoned, the better off we’ll be.

But today, I’m not sure that advertising paradigm holds up. The tradition media world (which includes including advertising agencies, print outlets, television, radio) is experiencing a huge shift in the way it needs to operate.

The populace is now adopting “new media” channels in ever-increasing numbers, and the traditional ways of doing things are no longer as reliable as they used to be. With DVRs like TiVo, mobile devices and social media sites like Facebook and Twitter,  the consumer isn’t just sitting in front of the TV anymore, waiting to be spoon fed an advertiser’s message.

What does that mean? I think it was pretty clear yesterday – the ads were funny and clever, with broad physical comedy, star-studded spots and even technological tomfoolery like the 3-D SoBe spot – but there wasn’t a single “wow” moment.

After weeks of hyping the “Super Bowl ad” story, yesterday’s displays didn’t really showcase greatness. In short, the reality didn’t live up to its hype.

Check out the New York Times’ take here. 

Click here to see 20 years’ worth of Super Bowl ads.