Ads are taking the economy into account

Tough economic times are making new cars, clothing and electronics a tough sell. So corporate marketers are trying a new message: We feel your pain.

Sprint Nextel Corp., for example, rolled out a TV commercial last week in which Chief Executive Dan Hesse, pitching his company's cellphone services, acknowledged that "people are trying to be smarter with their money these days."

Mike Goff, Sprint's vice president of national advertising, said the company added the spot to its lineup to show families that it understands the pressures they're facing.

"It made sense to acknowledge the economic situation," he said. "We understand that times are tough. Rather than ignore it, we wanted to take it head on."

With October retail sales the slowest since 1971 and automakers posting huge third-quarter losses, companies across the country are struggling to persuade consumers to buy their goods and services. On Friday, less than a week after launching its TV spot, Sprint posted a double-digit drop in quarterly revenue.

Motivating people to buy during one of the worst economic slowdowns in decades is challenging marketers.

"We're moving toward an era of conscious consumption -- just because I can afford to buy something doesn't mean I'm going to buy it," said Mike Sheldon, president of ad agency Deutsch LA. "People are questioning their need to spend."

The best way to persuade them to buy, advertisers say, is to emphasize value. Consumers are looking for long-lasting products that are good for the environment and are worth every penny, even if they cost a little more than competing items. They also want to cut back on waste and spend smartly. A new crop of ads is speaking to these concerns.

Target Corp., which reported a 5% decline in same-store sales last week, launched a New Day advertising campaign in September. It showed people riding bikes to work rather than driving, watching movies at home rather than going to the cinema and exercising in their living rooms rather than hitting the gym. The ads, of course, touted Target products that help people do those activities inexpensively.

"In response to the economic times, we're more directly focusing our efforts on value and emphasizing low prices," said Jana O'Leary, a Target spokeswoman.