Hasta La Creative!

When I filled up my Pathfinder yesterday, I realized that $3.54/gallon means a $70 tank–double what it cost me a short time ago. Naturally, this type of inflation has dire consequences for the economy.

For the first time since 1980, consumers are driving less. Last year, the amount of miles driven declined 0.4%. The previous two years had been flat. Prior to that, the amount of miles had grown 3-5% each year.

Brandweek explores some of the behavioral changes taking place as Americans keep it in “park.”

91% of consumers claim they have changed their shopping behavior due to various rising prices in the U.S. economy.

One of the categories getting hit the hardest is restaurants. Last year, customer traffic was up only 0.7%. More than half of financially challenged consumers surveyed said they are stocking up, preparing more meals at home and using leftovers.

The article also says Coca-Cola and PepsiCo will feel the pinch as transportation and raw materials costs rise. “It’s squeezing everybody’s margins,” said Gary Hemphill, managing director at Beverage Marketing, New York. “Beverages are price sensitive, there is only so much you can pass onto the consumer.”

Brandweek believes strong branding is more important than ever, as it’s that much harder to motivate purchase. I believe they are correct, but if gas prices continue to rise at this rate, it’s not going to matter much. People simply won’t have the disposable income it takes to make non-essential purchases.

[UPDATE] Now that I’ve had the chance to read the front page of Sunday’s New York Times, I see this topic is on the media’s mind. The Times says middle- and working-class consumers are starting to switch from name brands to cheaper alternatives.

In Ohio, Holly Levitsky is replacing the Lucky Charms cereal in her kitchen with Millville Marshmallows and Stars, a less expensive store brand. In New Hampshire, George Goulet is no longer booking hotel rooms at the Hilton, favoring the lower-cost Hampton Inn. And in Michigan, Jennifer Olden is buying Gain laundry detergent instead of the full-price Tide.

It’s taxes due day in America and the perfect time to look at consumer spending and the retail segment of our economy.

From today’s New York Times:

The consumer spending slump and tightening credit markets are unleashing a widening wave of bankruptcies in American retailing, prompting thousands of store closings that are expected to remake suburban malls and downtown shopping districts across the country.

Since last fall, eight mostly midsize chains — as diverse as the furniture store Levitz and the electronics seller Sharper Image — have filed for bankruptcy protection as they staggered under mounting debt and declining sales.

Even retailers that can avoid bankruptcy are shutting down stores to preserve cash through what could be a long economic downturn. Over the next year, Foot Locker said it would close 140 stores, Ann Taylor will start to shutter 117, and the jeweler Zales will close 100.

Speaking to the consumer spending question in today’s Washington Post, marketing consultant and friend of AdPulp, Marc Babej, said, “The common denominator in what people will look for is how to get the most bang for their buck. That means trying to get better value and more pleasure out of each dollar you spend.”

Better value and more pleasure. I like that. That ought to be S.O.P., no matter what the economy is doing.

Today’s New York Times looks at what the MicroHoo! deal could mean for “the minnows,” a.k.a. valley startups hoping to be acquired.

No one (named in the article) really knows what it means, and people seem to be more concerned about the looming recession. However, the optimists have reason to believe “the recession” won’t hurt them.

True believers are likely to ward off recessionary fear with two numbers: 21 and 7. Twenty-one percent of the average American’s media-consumption time is spent online, analysts say, yet only 7 percent of all advertising is online. The hope is that advertising will inevitably shift online and close this gap, whatever the economic outlook.

‘Tis the season for year-end lists of every variety. Time Magazine has 50 such lists, one of which–Top 10 websites–I’d like to take a closer look at.

1. Lemonade.com
2. AskSunday.com
3. Wink.com
4. TechPresident.com
5. GoodReads.com
6. MenuPages.com
7. DontForgetYourToothbrush.com
8. VolunteerMatch.com
9. Fatsecret.com
10. Indeed.com

It’s pretty easy to see the common thread here–services made possible, or made better, by the interwebs.

As someone who builds websites for brands, I find this list instructive. Mostly, brands want to use the web as a place to run ads, deeper, more immersive ads, but ads just the same. Yet, that’s not what people want from the web. They want useful information, entertainment, connections with other like-minded peope and services that make their day-to-day lives easier and more efficient.