Sunday, August 16, 2009

My Life. My Card. My Reduced Marketing Budget.


According to a recent story on Bloomberg, American Express slashed its marketing and promotion spend by $311 million in the second quarter of this year. That's a 47% reduction compared with the same period in 2008. A company spokeswoman, Joanne Lambert, said these cuts “were appropriate given the economic environment.” And she may be right - Amex's shares are up by 69% so far this year. But some analysts, including Macquarie Capital USA, warn that Amex "runs the risk of becoming a run-of-the-mill type credit-card lender" if it doesn't keep the brand fresh and top-of-mind. So what would you do if American Express were your brand? What story should you be telling in Q3 and Q4 given that you've been mostly silent so far this year? Please share your thoughts...