Strike the iron while it's cold

Mountains of studies, books and evidence show companies who maintain or increase advertising spending during tougher economic times almost always come out of those economic difficulties much stronger than their ad-cutting competitors. However, the knee-jerk reaction of most companies still seems to be cut cut cut. Once again, a company has proven the old wisdom.

Hyundai, a car company largely not taken seriously even just a few years ago, seems to be solidifying its position as a major competitor in the US auto market, bucking industry trends along the way. I'm not sure of the exact numbers on Hyundai ad spending, but I do know they have at least maintained, if not increased their advertising presence in the marketplace during the downturn. Their reward while other automakers are cutting spending? Two models that have actually seen serious sales GAINS - the Hyundai Elantra is up 33% over last year and the Hyundai Accent is up 30%. That's on top of an '09 North American Car of the Year Award for the Hyundai Genesis.

Take notice automakers. Hyundai's been at the books, using proven wisdom and gaining ground quickly.

Getting profitable by cutting the profitable

Anyone can speculate or make statements based on anecdotal evidence or familiar talking points. That's one reason I try to back my opinions up with real data when I can. I'm glad to say that with some new numbers, my opinion has once again been validated.

The Big Three American automakers have seen their sales slip nearly 50% year over year. In trying to get the company fit and trim, GM is pruning several makes, Saturn being one of them. In a somewhat recent post, I complained that GM is cutting profitable (or at least better selling) vehicles, like the entire Saturn Line, while keeping redundant makes like GMC (essentially gussied-up Chevrolet trucks and SUVs, but not as nice as Cadillac). Well, a recent report found that while GM's sales figures have slipped phenomenally, the Saturn Astra's sales were up more than 30%.

Let me repeat that. At a company that's seen sales plummet by nearly half, in an industry that's tumbled by nearly a third, GM considers the most prudent move to cut a vehicle that's actually seen a 30% gain.

There's simply nothing more to say about it. I rest my case.

Great advertising, terrible PR

Apple is regularly hailed as one of the pinnacles of advertising that other companies should strive for. I have to agree. However, it seems when it comes to PR, Apple seems to feel that outright lies are the way to go. After all, they have to defend the almighty stock price right? After lying about Steve Jobs health for months, saying he had a minor illness, which turned out to be a major and potentially crippling health condition, Apple has pulled another doosey.

Apple has denied denied denied rumors that it laid off staff recently. However, some of the very people laid off had a different story to tell. Apple did, in fact, lay off about 50 people. It's not a huge number, considering the size of the company. And considering they could make a case that the layoffs were inspired by a shift in corporate philosophy, rather than financial troubles, it begs the question why they decided to lie about it in the first place. I can only posit that it's the result of a very backward PR philosophy that's building growing distrust for the once pristine company. If Apple's not careful and doesn't change their approach to public relations, they could end up irrevocably marring the image that they've spent so many years and millions building.

Crickets don't know fast from reliable

Listening to a radio spot by local cell carrier Cricket Wireless recently, I was reminded of how easy it is to pull a bait and switch if you do it quickly and confidently enough. In the spot, two characters are talking in a pretty classic problem/solution format. It's a pretty fast spot, so if you're paying attention, you'll completely miss them dodging a major cell issue.

The guy who's looking for a good cell carrier is listing things he wants from a carrier, and the solution guy is naming all of Cricket's relevant benefits. Carrier seeking guy say, "I want a reliable network." Solution guy replies, "Cricket has a 3G network."

The problem is, of course, that 3G addresses the speed of the network, not the reliability. You can ask just about anyone with an iPhone 3G in a major urban area exactly how "reliable" 3G really is. Who needs service in places like downtown Houston or the central business district in Chicago? 3G has to do primarily with the speed of the network in regards to downloading data like songs or streaming video.

So, props to Cricket for pulling a fast one. Answer a question with a technical term that not everyone understands and you get to substitute speed for reliability. I wish all product benefit shell games were that easy.

Should they stay or should they go now?

If you're wonder what makes and models of cars are going to stick around and which are going to get the axe, here's the latest from Yahoo Autos. While talks and plans change every day, this list is probably pretty close to where things are going. Getting rid of under-performing products. Who'd of thought it would come to this?

Want advice? Ask someone with a vested interest!

My new favorite billboard on my gruellingly long commute is one for Realtors. Its says, "Is now a good time to buy a home? Ask a Realtor." And of course, this billboard was put up by some sort of association of Realtors.

It's unfortunate, because they probably are some of the most knowledgeable people about that question. However, I don't care who you are, if you have a vested interest in the answer to a question, I'm going to be have a hard time taking your advice. Realtors only make money when they sell houses. No houses selling, no money. Who in their right mind is going to tell you not to buy a home if their entire livelihood (today a very battered livelihood) is 100% dependent on you doing exactly that? If I sell apples and someone says, "Is now the time to buy apples?" It would be stupifying for me to say, "No, now is not a good time to buy apples." Of course I'm going to tell you to buy what I'm selling, just like the Realtors are. And it's unfortunate, because there's a good chance their advice is good, despite their built-in bias.

I think everyone needs to take a course in third-party credibility.

Direction Proof

I see a veritable plethora of billboards on my way to and from work every day, and the importance of proofing never escapes my thoughts. The most recent offender is a huge billboard for Lone Star Ford.
The billboard says "exit Shepard," which is unfortunate, because to get to Lone Star Ford, you really have to exit Shepherd. I can see a confused driver or two saying, "Was that the exit?"

Location-specific billboards with directions on them are a great way to drive people to a location, and can be very effective, even devoid of creativity. However, you have to make sure to point your potential customers in the right direction, because two letters can be the difference between ka-ching and "Was that our exit?"