Remember those holiday television ads that featured a new luxury car all wrapped up in a big bow? They're gone.
This holiday season, advertisements for a variety of retailers, from L.L. Bean to Zales, aren't showcasing big purchases or even Santa. Many ads are doing just the opposite — targeting value-conscious consumers with ad campaigns that have a high dose of sentimentality.
"It's a tale of two strings — purse strings and heartstrings," says Peter Hempel, the president of DDB New York, an advertising agency.
One of L.L. Bean's TV ads features a snowy slow-motion scene complete with kids, a dog and sledding. The tagline? "Every penny counts, so does every moment."
Target has its "Festively Frugal" message on a print ad, which features a smiling, upbeat hostess setting up what appears to be a somewhat Spartan spread on a table.
And Hallmark has its "Fill the Holidays with Meaning" campaign, which is represented on its Web site by a child's hand holding a small gift-wrapped box with a "Find Meaning Inside" tag attached.
"The message is about being frugal; it's about necessities," says Mike Gatti, executive director of the Retail Advertising and Marketing Association. "It's more about what customers need than what they want for the holiday."
Gatti says the ads this year are focused on price and value in order to draw customers into stores.
But Hempel says this singular focus on dollars off and "door busters" — low-priced items meant to entice shoppers to shop in a store — has resulted in disappointing and lackluster retail advertisements.
"The retailers need to do a better job of giving consumers a reason to go to the store," says Hempel. "It's almost as basic as that."
Many retailers are giving loyal fans and customers incentives — and even encouragement — online via social media outlets, including Facebook and Twitter.
Gap's "Spread the Cheer" campaign enables online shoppers to send personalized cheers to friends and family. The greetings also include a Gap-clad squad of young dancers and singers reciting little ditties such as "Happy Whateveryouwannakah" or "You Office Party Hardied."
While these tactics won't necessarily improve the flat outlook for holiday sales, they do give retailers an opportunity to expand brand consciousness.
Best Buy is using a different type of singer — employee carolers — to draw a direct line for the consumer with "very actionable" marketing in their TV ads, says Advertising Age retail reporter Natalie Zmuda. These tailored messages include suggesting a flat-screen TV as a gift for a husband.
The recession has also made advertising more affordable on TV and other platforms. While indicators point to retailers spending less on advertising this year, some retailers — just like consumers — are gravitating toward value. A case in point: Zmuda says Gap's holiday TV ads are back for the first time in three years.
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