Update 12/31/08 – FedEx posted this explanation regarding their difficult advertising decisions for the future. They address questions raised by the announcement that they would not advertise in the 2009 Super Bowl. Mike Glenn says, “Our marketing group has not been immune to cost cutting efforts. At this point, more than 25 percent of the overall marketing budgets have been reduced. We have reduced our television advertising to its lowest levels in over three years.”
Update 12/22/08 – It official, FedEx will not be advertising in the telecast of the 2009 Super Bowl on NBC. FedEx posted this blog explaining their position on Super Bowl advertising. The blog says, “As FedEx employees, we, like millions of people at other companies, are being asked to do more with less. ” That is evident by the salary cuts made to 14,000 employees in Memphis and 36,000 nationwide as reported by the Commercial Appeal story last week.
Original Post on 11/13/08 – Times are getting tougher for advertisers and the media outlets they support. The Super Bowl could take a hit in 2009 as advertisers cut budgets and plan for a difficult year in 2009.
Wall Street Journal reports, “FedEx, a loyal Super Bowl advertiser, still hasn’t decided if it will buy in. FedEx is concerned that shelling out big bucks — at a time when it’s “asking employees to do more with less” — will look “wrong,” says a person close to the company. “Companies have to be mindful that jumping into the game can open them up to criticism,” this person says. The Memphis, Tenn., package-delivery giant is holding out to see if it can get a bargain. FedEx’s hesitation is raising eyebrows on Madison Avenue because it has advertised in 12 of the past National Football League championship games.”
The Television Bureau of Advertising changed their TVB 2009 forecast this week, “TVB now forecasts that Total Spot TV revenues in 2009 will decline between 7%-11% in comparison with this year’s revenues, with Local Spot revenue in a range of -4.0 to -8.0 and National Spot declining by 11.5% to 15.5%.”
There have been layoffs at many media companies due to the advertising reductions and the cost of doing business increases. Mediaverse has been following the layoffs at the Commercial Appeal in Memphis.