Archive for November, 2008

No sympathy here as auto woes hurt Big Advertising

I just learned Detroit’s Big Three automakers account for six percent of the revenues of the world’s four largest advertising holding companies. Meaning, if the automakers go down, it will be a painful blow to the firms most responsible for promoting their products. Hmm, let me see if I can work up some sympathy here. Sorry, no can do.

These are the very same agencies that consumed countless barrels of creative fuel bringing us the dream of owning Hummers, Escalades, Expeditions, Yukons, Navigators, Suburbans, Tahoes and other gas-guzzling, climate-killing hogs. I wonder who came up with that delightfully clever idea two years ago by GM to hand out 42 million toy Hummers in McDonald’s Happy Meals and Mighty Kids Meals. Once the kids get their meals, the parents will reach for the toy, and voila, next thing you know they’re with their kids in the Hummer showroom.

The major holding companies — Interpublic, Omnicom, Publicis, WPP — all count a Detroit automaker at or near the top of their list of largest clients. They’ve happily allied with an American industry that Fortune magazine wrote last year has been “getting a free pass on fuel economy for more than two decades. Instead of devoting its considerable technical resources to improving gas mileage, it has been cranking up the horsepower of its engines and selling modified trucks as SUVs.”

And now the Big Three automakers are cranking up the pressure on Congress to bail them out, while the Big Four ad conglomerates hold their collective breath. Detroit automakers are the poster children for environmentally and, now, economically and socially destructive behavior. While the atmosphere warmed, vehicles got bigger. While fuel prices rose, sales of big autos tanked. And while sales disappeared, so did the hopes of local communities whose economies are devastated by auto plant closures.

I’ve seen little evidence any of this has dented the conscience of the world’s leading ad executives. No doubt they’ve been too busy counting profits from their share of the billions Detroit has spent on advertising, including $4.6 billion in measured spending in 2007 alone.

The day of reckoning is now here for big advertising, just as it has been for their auto clients and their clients’ employees and communities. Good folks in advertising, PR and marketing are losing their jobs. My wish is they now find work supporting companies and industries that actually care about our planet’s future.

Share

Will business pick up the signals?

What a different world we awoke to on November 5. For most of us voters, the future looks a little more hopeful, less divisive. For the rest, well, let’s just say not everyone was feeling the love we Obama supporters were feeling.

I’m not certain what this staggering political act by the American electorate means for those of us in business. But I do think voters sent some strong signals our way.

I keep returning to what Rob Walker, author of the recently published book Buying In, calls the “fundamental tension” of modern life: “We all want to feel like individuals. We all want to feel like we are part of something bigger than ourselves.”

Obama personifies this tension. Many see in his achievement the hope and possibility that any individual anywhere can achieve his or her dreams, no matter the odds. Others are drawn to his larger calling to fulfill America’s promise of a perfect union.

Thomas Friedman quotes Harvard University political philosopher Michael Sandel in his New York Times column about Obama’s victory: “Obama’s campaign tapped a dormant civic idealism, a hunger among Americans to serve a cause greater than themselves, a yearning to be citizens again.”

Sandel and Friedman weren’t addressing business directly, but I can’t think of a greater insight for business to take from this election.

With few exceptions, businesses have catered exclusively to our desire to feel like individuals. Our products and our marketing have appealed overwhelmingly to the fulfillment of personal needs and wants through consumption. And because it was good for business, we managed to elevate the role of Americans as consumers above all others, including citizens.

If Sandel is right, Americans want more. Not more stuff; more opportunity to make the world a better place and more leaders who inspire the greatness in all of us. Businesses must recognize the pendulum is swinging away from the all-consuming, me-first excesses of the past quarter century. Those that respect and engage customers and other stakeholders as whole human beings — ready to “serve a cause greater than themselves” — will lead the way in our brave new world.

One great cause is sustainability. Like civil rights, the sustainability movement is a struggle for the ages. From where we stand today, the challenge of preventing catastrophic climate change, healing our natural systems and creating more equitable economies appears as a mountain summit beyond reach. Will the climb be worth the effort? What do you think the civil rights warriors who can now stop dreaming of an African-American president would say?

Share