Marketing Snippets for December 08

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Marketing Storm Brewing

This year will go down in history as a tumultuous year for marketers.  High gas prices that spelled the end of the SUV, have plummeted and all of the talk about people buying local and not being able to afford to drive to the store has been replaced by the next crisis of your choice; the global economic slowdown, tight credit or a housing market on life support.

Just this past few days I learned the following new things; and this is only this week.  Keeping abreast of marketing news is easy if you subscribe to publications such as Advertising Age, Marketing Daily and Around the Net.

McDonald’s Reports November Sales Up 4.5%
During a month when many retailers reported dismal results, McDonald’s same-store sales in November jumped 4.5% in the U.S. and nearly 8% globally.
McDonald’s dollar menu helped the chain see same-store sales jump 4.5% in the U.S.

Retailers Shrink Ad Spending During Holiday Sales Period
A study from BDO Seidman found that marketing and advertising spending at many of the nation’s retailers have been cut during what is the most-important sales period of the year. Of the 100 chief marketing officers surveyed, 32% report having a smaller holiday advertising budget than last year. Forty-three percent of retailers said their budgets are flat, while only 25% said their budget would increase for the holiday season.

Nascar Sponsors Jump Ship
Of Nascar’s 42 full-time drivers, 12 currently do not have primary sponsors for the 2009 season, which begins in less than 10 weeks with the Daytona 500. Primary sponsors pay $18 million to $20 million to be featured as the main logo for all 38 races on a driver’s car, such as DuPont does with Jeff Gordon.

The Big 5 Sports for Sponsorship Revenue
Nascar’s $3 billion per year
National Football League $1.2 to $1.5 billion per year
Major League Baseball
National Basketball Association
National Hockey League.

GM Falls Out of Top 3 Global Spenders
After many years as one of the top three global marketers, General Motors Corp. dropped to No. 4 based on 2007 ad spending.  In 2007, General Motors was the only one of the top 10 Global Marketers to cut ad spending, by 0.9% to $3.3 billion.

Top 10 global marketers by measured media*

  1. Procter & Gamble Co. $9,358
  2. Unilever $5,295
  3. L’Oréal Clichy $3,426
  4. General Motors Corp. $3,345
  5. Toyota Motor Corp. $3,202
  6. Ford Motor Co. $2,902
  7. Johnson & Johnson $2,361
  8. Nestlé Vevey $2,181
  9. Coca-Cola Co. $2,177
  10. Honda Motor Co. $2,047

100.  eBay

EBay made a first-time appearance in the ranking, at No. 100, after ramping up its ad budget, including an 82% jump in U.K. spending.

Dollars are in millions. Source: Ad Age DataCenter estimates based on data from monitoring services in 86 countries.

Gas Prices Pump up Walmart Sales
Plummeting gasoline prices since mid-September have disproportionately helped Walmart shoppers, in part because the chain is concentrated most heavily in Midwestern and Southern states where prices have fallen the most — as much as 60% in Arkansas and Missouri, the heart of Walmart country, vs. about 45% in the New York metro area and California, where Walmart has comparatively few stores.

Gas Prices Give Economy a Shot in the Arm
Falling gas prices act like an economic-stimulus package, with each penny decrease generating up to $1 billion in annual savings for consumers, or a total of around $200 billion based on a nationwide average $2 decline in prices at the pump since mid-September.

As you can see the world of marketing is like a punching bag.  While most of these stories are national and international in scope it makes you think about how much the big stuff affects the rest of us.

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