Letter to Ad Age (12.26.01)

Dec. 26, 2001

What Circuit City Earnings Say About Advertising

Dear Editor,

Once again, we learn how marketers win during an economic downturn as Circuit City announces fiscal third-quarter earnings of 10 cents a share vs. the 7 cents analysts had forecast.

Circuit City’s secret to success? According to W. Alan McCollough, president and chief executive, the magic was found in what Advertising Age has been telling its readers for the past year: “A more effective marketing program that covered a variety of vehicles including newspaper inserts, magazines, television and direct mail, as well as creative events such as our October Expo, helped increase store traffic.”

Those of us who sell advertising should not be surprised to learn over the coming months that brands which beefed up, rather than cut back, their fourth-quarter advertising budgets will out-perform their competitors.

Rex Hammock


Hammock Publishing Inc.

Nashville, Tenn.