| Madison Avenue Takes a Back Road | |
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The travel industry's future is also in question. Airlines suspect they'll suffer a $20 billion loss from both being shut down as well as consumers seeking alternatives to air travel. Plus, the installation of new security devices will also come out of their already tight budget.
Some airlines say they'll be out of business in about 30 days if the government doesn't provide $2.5 billion in cash assistance and an additional $12.5 billion in loan guarantees. The House rejected the airlines' request because they didn't want to give them "special treatment." Commerce Secretary Don Evans says the Bush Administration and Congress should work together since it was the government that actually stepped in and mandated a nationwide grounding of all planes.
The slow economy was already impacting airlines, hotels and even rental car companies. Planes are literally leaving airports with as few as four passengers. Companies are cutting business travel so they can keep their employees out of the air.
Hotels have received numerous cancellations. Several hotel chains have already pulled their ad campaigns.
Rental car companies are also seeing the results of hotel and airline cancellations. They're hoping the effects are short-term and consumer fears will subside as the days go on.
An influx of financial ads have been hitting the air to soothe consumer concerns about their money, though.
Merrill Lynch launched the first ads stating, "Merrill Lynch is financially strong, and our clients' assets are financially safe and secure."
Morgan Stanley ran full-page ads with the message, "Our assets and all of our clients' assets are completely safe. And we are ready to begin again as soon as the market opens." The company had 3,500 employees based at their World Trade Center offices.
Bank One, Macy's and a whole host of other companies have run ads expressing their grief for the victims and the families and their thanks for the rescue and relief efforts in all areas. Ads like these are a subtle approach to keeping your company's name out there without trying to capitalize on a tragic situation.
Advertisers don't need to disappear altogether from the public's eye, either. But a key element in how they'll be received by the public ultimately depends on how they transition themselves and their ad campaigns back into regular rotation.
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