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out there, experts sayAdvertising increases since Sept. 11, 2001, have been on shaky ground as the United States moved toward war.
Now that the war has been launched, "all the reasons for uncertainty basically will have gone away," said Jack Bates, chairman and chief executive officer of Starr Seigle Communications Inc.
"We're hoping it now gets better."
In the past two months he has seen "a general reluctance to build budgets and spend," but the effect the war may or may not have had has already occurred.
"I think we're already there," said Bates.
One exception may be car ads.
There has been a large increase in automotive advertising leading up to the First Hawaiian Bank International Auto Show, which wraps up today.
"I don't think you ever see as many ads as you do during the auto show," Bates said.
Traditionally the auto show increases sales, which continue strong for at least a couple weeks after the show ends, he said.
Bates was unsure the war would dampen auto sales.
"I don't think it's the war, it is the economy in general in Hawaii," he said.
Advertising is the least of auto dealer Mike McKenna's worries.
"We're just going to keep on going," he said.
Following shipping delays caused by last fall's labor dispute at the West Coast docks, Hawaii car dealers have received shipments "all at once," he said.
McKenna, president and owner of Makena Hawaii, normally has $5 million in inventory but he's up to $10 million now and recently lost a lease on land where he stores as many as 60 cars.
"We've got twice the inventory that we've ever had," he said. "We're probably going to wind up taking less of a margin."
McKenna explained that a practice called flooring is his biggest expense.
"We get the cars from the factory and the factory wants to get paid right away," he said.
The bank will pay right away and charge 7 percent or 8 percent until the cars are sold and pay off the loan, McKenna explained.
To move 'em up and get 'em out, McKenna plans to increase print and broadcast advertising for his Ford, Volkswagen and Mazda dealerships.
He doesn't believe war will wilt his business. "I don't think the war is going to affect us. It looks like it's almost over," he said Friday.
Increasing advertising is not the normal course of business for most companies.
Often, the opposite is true.
"The worst thing to do during an economic downturn is to cut your advertising and marketing budget, but for most people it's the first place they go," said Gloria Garvey, principal of the Brand Strategy Group. "What happens when the economy gets better is that their name is no longer top-of-mind and it's much harder for them to ramp-up again. It is really true that the strongest brands survive economic downturns better than the ones that are not strong."
"Your brand is your promise to your customer," Garvey said. "People have to keep their brands strong and do everything they can to promote them," she said.
If businesses have to cut their advertising budget, then they have to make sure their employees understand they're the front line representatives of the brand, she said.
In an economic downturn, good customer service can make a difference to people who are feeling lousy.
"If they go into a store where they're taken care of, they're made to feel good, they're going to connect that with that brand and want to come back and continue to shop there," Garvey said.
Citing an example of a strong brand likely to do well is Seattle-based coffee company Starbucks.
"Starbucks is a brand that promises community as much as selling coffee," she said, noting the store design encourages people to sit down and connect with each other.
"That brand is probably going to do great even though they sell expensive coffee. People want community. People want to be able to discuss the war and what's happening. Even though you'd think people would cut out expensive coffee, that may be a small luxury that they'll preserve," Garvey said.
One company's decision to scale back on advertising may be a competitor's opportunity to grab market share, said Bates, of Starr Seigle.
The tone of a company's advertising may have to be adjusted during times of war, Bates said.
"It makes us a little more cautious about humor, or sometimes irreverence," he said.
In recent times some companies have virtually wrapped themselves in the American flag in their advertising.
"I guess it depends on the client, but I wouldn't recommend it. It's a little transparent in my opinion," he said. "To simply take advantage of that patriotic mood because we're in a conflict I think would be very wrong."
A large percentage of daily advertising fell by the wayside with the onset of war on Wednesday.
Continuous war coverage has left broadcast and cable networks and local stations without revenue-generating commercial breaks.
"We've had a number of letters from clients locally and nationally with very specific instructions about when they would be willing to (return to the) air," said Rick Blangiardi, Hawaii market senior vice president for Emmis Communications Corp., which owns both KHON and KGMB.
The common wish is to wait 72 hours after round-the-clock coverage starts before resuming ad schedules.
"We're hopeful that when things return to normal they'll make good on those ad commitments," he said.
Erika Engle is a reporter with the Star-Bulletin.
Call 529-4302, fax 529-4750 or write to Erika Engle,
Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210,
Honolulu, HI 96813. She can also be reached
at: eengle@starbulletin.com