Q&A with Roy Spence, Advertising Guru

The man behind campaigns for Southwest and BMW offers up advice in a tough economy.

January 29, 2009

Advertising guru Roy Spence, who served as a media adviser to the Hillary Clinton presidential campaign, recently spoke with Tosin Mfon, a reporter for The Kiplinger Letter. In a telephone interview on Jan. 23, the CEO and chairman of GSD&M Idea City, an Austin, Texas-based ad agency whose longtime clients include Southwest Airlines and BMW, described what he thinks will work best in these tough economic times. He has a new book coming out next month with coauthor Haley Rushing, It’s Not What You Sell, It’s What You Stand For. Here are edited excerpts of his conversation with Ms. Mfon.

What differentiates the brands that will survive this recession?

The companies that will survive this downturn are the ones that have a purpose as their anchor -- that are in the business of making a difference and improving lives. Those great companies that stand for something will be the ones left standing. Those that are just in the business of selling something will be grasping at straws. Our longtime client Southwest Airlines is in the freedom business -- their purpose is to democratize the skies. In 1971, only 15% of the American people had flown because air travel was expensive and reserved for the elite. Today over 85% of the American people have flown. Southwest has achieved its purpose by controlling costs so it can offer lower fares. Right now, we’re seeing other airlines have to charge fees for baggage, pillows, blankets and other things. Southwest is remaining true to its purpose and offering customers freedom from fees.

What should companies’ general advertising message be?

The message should be all about great values at the company and offering great value to the consumer.

How does a company effectively market “value” and “values”?

The first step is to take a good hard look at the difference that your organization makes and articulate the core purpose in a clear and compelling way. It becomes a matter of focus. Everything you do -- and the only things you do -- should go toward fulfilling that purpose. That’s why it’s critical to bring the purpose to life inside your organization before you do anything else. Your employees will be responsible for making the difference you are trying to make.

How do companies promote a value message for brands in the luxury sector?

Customers in the luxury sector are still interested in both great values and great value. Our BMW client’s purpose is to enable people to experience the joy of driving. They do that through extraordinary innovation, and customers respond to both the values and value that’s inherent in what they do.

Generally, advertisers seem to be spending more of their money on the Web, especially social networks. Why?

The Web and social networks are measurable, and in these economic times, advertisers are looking to be places that are measurable. And yes, we have done our fair share of Web and social networking programs. But they haven’t been driven by the economy. If you truly know your audience, determining the most relevant media channel becomes easy.

Does something as old-fashioned as direct mail work in a climate dominated by digital?

Done well, all communication channels work together toward establishing image, awareness, trust, credibility and building sales. Among these, direct mail is a particularly powerful channel to use toward building deeper relationships and loyalties between a brand and its customer base. For brands like AT&T, when you’re able to offer a bundled value, it’s probably one of the best mechanisms.

What is your own company doing to remain competitive?

We do whatever it takes. We’ve been around for more than 35 years and we’ve been through other economic downturns. At times like these, it’s more important than ever to ask yourself, “How can I do it faster, cheaper and better?” And that equals smarter. It sounds simple, but people overlook the obvious. You have to focus on your clients’ goals and help them win more quickly, with less money and without sacrificing quality.

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