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Bringing readers something to smile about

662002_mailMore often than not, it’s the tragic stories that receive media coverage, especially in times of crisis. Displeased with the huge amount of bad news he reads every day, Ruy Drever, a Brazilian journalist, decided to do something about it: He created a site called “The Good News” that focuses only on the positive.

“I needed some fresh air after having been exposed for so long to so much negative news that I read every day in the newspaper. So I developed a space to get the word out about positive people and initiatives, things that make a difference in building a better world,” Drever said in an interview with the blog Outras Bossas.

Brands reposition as Brazil enters recovery

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Brazil’s GDP rose 1.9 percent in the second quarter after a downward trend that had lasted two quarters, and Brazil’s finance minister has announced that the country has “left the crisis behind.” The media has shifted its attention away from the “economic crisis,” and the news now mostly covers the discovery of oil in Brazil’s deepwater pre-salt region, the political crisis in the Brazilian Senate and the performance of the national soccer team in the run-up to next year’s World Cup.

Advertising communication has, of course, reflected this shift. In the retail sector, some of the brands whose crisis-related strategies we’ve written about, such as Ponto Frio and Wal-Mart, are shifting back to their regular positioning. Wal-Mart is delivering its “Save money. Live better” positioning, associating itself with the idea of sustainability, while Ponto Frio is falling back on a retail promotional program for its upcoming anniversary.

Retail brands offer a good example of how brands across Brazil are following the suggestion of the finance minister and leaving the crisis behind. Now … what’s next?

Photo credit: Fernando Stankuns

A Facebook marketplace rises in Egypt

2fbookCairo’s newest consumer trend is the rise of a Facebook marketplace, with people selling everything from used books to jewelry to designer fashions from Paris via Facebook groups. In a struggling Egyptian economy, many retailers have been forced to increase their prices. So people are drawn to some of the bargains on Facebook (one seller is offering designer handbags for 20-30 percent less than the original price), as well as the ability to select items from the comfort of their own homes. Online shopping has never been much of an option here in Egypt—there aren’t many domestic online retailers, and buying from abroad entails paying high customs fees and involves credit card complications. Facebook has therefore provided Egyptians with a local online shopping option. While this heralds trouble for shops and upscale department stores, Facebook represents a massive opportunity for entrepreneurial individuals taking a chance on a sleepy retail market.

America’s new ‘R’ word

picture1Like many people still in business today, I don’t read the paper anymore. Actually, I scan it. Or rather, I scan the headlines and the synopsis that The New York Times kindly e-mails me every morning. And last week, I realized that a new “R” word is creeping into our daily media diet. Not “recession”—that’s old hat now—but “reset.”

The NYT used it in describing President Obama’s efforts to try to restart U.S./Russian relations, but I’ve seen it used recently in other stories—about Obama’s hopeful efforts to repair U.S./Muslim relations, the administration’s emergency plan to reboot the domestic auto industry and the imperative to reinvent the health care industry.

None of these important initiatives are really about the recession; it has just forced the issue. They’re about something more important: rebirth and renewal. I’ve got a theory that “resetting” is a quintessentially American concept—somewhere deep in our national psyche lies the need to start afresh, whether that’s commercially, legislatively, socially or psychologically.

Look out for brands that effectively capture this sentiment. They’ll be the ones to follow, to partner with and invest in. They’ll also be the ones stealing your market share and your loyal consumers.

Argentinean newspaper lures marketers

Original Energizante 2Clarin, the biggest newspaper in Argentina, is promoting itself to marketing directors as the most effective media for these times. The print says: “It’s a year to sell or sell.” In other words, this year, you really need to sell your product. You don’t have options. If you don’t, you will go bankrupt. After reminding you of this harsh truth, Clarin continues, “Think well what you will do with your ad.” A straightforward concept that, along with its strong, humorous and grotesque tone and language, shows the consequences of not optimizing one’s advertising budget: few sales, excess stock, so … you end up eating all your chocolate or drinking all of your energy drinks. The ad closes with: “You need to sell, you need to advertise in Clarin.”

The message is simple but convincing: Today, more than ever, marketers must make the right decisions and have a clear plan of what, how and where to advertise.

Spain’s public TV bids farewell to advertising

tveIn Spain, television ad spending has dropped since the downturn. So with TV ad time not as profitable as it once was, the government has made the decision to wipe out advertising on the two public TV channels starting in September, to emphasize a clearer “public service” orientation. There will be no more ads on the Televisión Española (TVE) network, and new taxes on private channels and telecom companies will support public TV budgets.

The first reaction from TVE’s commercial sponsors is clear: They oppose this move and want at least 12 minutes of advertising an hour. Their argument: Less advertising will mean less consumption, and so the downturn will be even worse.

Optimists might note that the Internet keeps on growing as a medium—online advertising was up 3.6 percent in the first quarter. Many Spanish marketers are still using it as an extension of their media plans and starting to transpose their conservative adverting culture to the Web. This decision may push them to bet on the Internet in increasingly clever and more effective ways, leaving a lasting impact on the ad world here after the crisis ends.

When news goes from bad to worse, what’s a marketer to do?

urban-hunterHere in Michigan, we have the nation’s worst unemployment, GM and Chrysler are circling the drain, and when USA Today features a family taking on the “pioneer” lifestyle (cutting way back on spending, growing their own vegetables, raising chickens, etc.), of course they’re from Michigan!

Fine, but when The Detroit News runs an article about an urban hunter, a Detroit old-timer selling fresh raccoon meat, even my stress level rises. Is that how bad it’s going to get? Should I start thinking about the squirrels in my backyard?

It’s got me rethinking that bike purchase or the next family vacation (might have to eat squirrels soon, for god’s sake!). And that’s the point: This barrage of negative news changes behavior, which makes things worse, which leads to more bad news … and a self-perpetuating cycle. The nonstop media blitz, now constantly at our fingertips, is then compounded by blogs, Twitter and whatever was invented earlier today. You have to work hard to avoid it, and it’s making this downturn worse.

When bad news is pervasive, brands can provide a much-needed reprieve. They can help assuage anxiety by projecting confidence in the future (of the economy generally and of the customer specifically), with messages of hope, pragmatic optimism and, when appropriate, humor.

Encouraging family (and TV) time

sebas_cablevisionCablevision Mexico is writing to its customers:

Dear Subscriber,

They say these are difficult times. At Cablevision, we know these are times to show who we are. Time to go back to our family. Times in which being close to your loved ones should not be a sacrifice ….

The message encourages taking refuge in family, spending time together at home. Promoting this ideology of togetherness is a smart way to encourage spending more time watching subscription TV. And what makes this even smarter is the fact that the channel for the message is a simple letter. So the medium itself comes into the house to impart the message of staying home. Once again, the medium is the message.

How is this recession different from previous downturns?

ryan-holst_downtown-hong-kong_2993297162_427f61a1a5This recession is different from recent ones due to its pace. While the downturns of the ’90s had a slower build-up, giving businesses and consumers time to prepare, this one has been rapid, and many people have been caught off-guard. But there’s no need to panic. As Art Buchwald once said, “Whether it’s the best or the worst of times, it’s the only times we have.”

First, not all countries have been impacted to the same extent. While it’s definitely not business as usual in APAC, there are still countries with decent growth, including India and China as well as Vietnam, Australia and New Zealand, to a lesser extent. More mature economies, like Japan, have been hard hit. And the economic situation in some countries, most notably Thailand, is exacerbated by ongoing political problems.

Established brands are not going to disintegrate overnight. Millions of dollars go into the creation of leading brands. And layers upon layers of conversation between the brand and its consumers have been built up over time. Today, because of the various media available, it’s easier than ever to keep that conversation going and maintain a level of brand awareness. In particular, digital provides a powerful multiplier effect that allows a brand to engage and to go viral.

In the past few years, we have witnessed a fundamental shift in power between buyers and sellers. Buyers are now very clearly in control through the technology available to them. Consumers around the world conduct a robust dialogue on the minutiae of product quality and customer experiences. When someone is displeased, word spreads, and if the brand doesn’t respond quickly, it fades.

While brand weaknesses are quickly exposed in this digital world, marketers also have an unprecedented ability to maintain a dialogue with consumers. Businesses must leverage digital to maintain their brands through this downturn.

Photo credit: Ryan Holst

India’s leading business daily encourages entrepreneurship

mc_the-best-time-for-ideasAmid all the news items on the downturn, India’s The Economic Times has created a platform that encourages the spirit of entrepreneurship by giving people an opportunity to submit their ideas, as well as mentoring and the chance for funding.

The “Power of Ideas” contest provides both inspiration and advice for business development in a recession. Over the last decade, the spirit of Indian entrepreneurship has been riding high, and there is now a collective feeling in Indian corporate voice—one which keeps peeping through in press reports, interviews and articles—that India will determinedly turn the recession into opportunity. Many headlines demonstrate this tone, like this one, from The Economic Times: “Just one big idea can lay off the slowdown.” While marketers and brands are busy rethinking their strategies, here is a media brand that used its position to its advantage; instead of just being a messenger of bad news, it created an interactive program.