Wal-Mart to air economy-focused ads
Last updated Friday, August 22, 2008 5:57 PM CDT in Business
By Kimberly Morrison
The Morning News
Wal-Mart Stores Inc. said Friday it is launching a series of economy-focused TV ads during the Democratic and Republican national conventions.
The 15-second ads highlight some of the company's top initiatives, including its $4 prescription drug program, and communicate how supercenter shopping saves on gas.
The ads will run on cable news networks including CNN, MSNBC and Fox News during the Democratic convention in Denver and the Republican convention in St. Paul, Minn.
The campaign is part of a larger effort by Wal-Mart to communicate price savings, the company said.
The ads, stylized like campaign ads, cast Wal-Mart as a consumer advocate in a challenging economy.
Wal-Mart declined to say how much the company is spending on the ad campaign, but reported to the Securities and Exchange Commission that it spent $540 million in advertising last year. Wal-Mart is the fifth largest spender on retail advertising behind Macy's, Nextag.com, Target and Sears, Roebuck and Co., which owns Kmart.
Data collected by The Nielsen Co. shows the retailer last year spent 25 percent of its advertising budget on network TV, 20 percent on cable TV and another 18 percent on other TV broadcasts, including Spanish-language channels.
Wal-Mart U.S. Chief Executive Eduardo Castro-Wright said in a release that the new ad campaign reinforces for its customers that the company is "there for them" through economic hardship.
Analysts had months ago predicted that Wal-Mart would fare well as consumers became increasingly strained by inflation, as well as housing and credit woes. Many continue to be encouraged by its strong quarterly sales compared to the retail industry overall.
"While we still think it is too soon to say that Wal-Mart is back on top of its game, the company is posting its strongest sales numbers in recent memory despite, or potentially because of, the weakening economy," Joseph Beaulieu, analyst with Chicago-based Morningstar, said in an Aug. 7 note.
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BCR wrote on Aug 25, 2008 2:33 PM:
Not already registered?
VHugo wrote on Aug 23, 2008 3:55 PM: