How much money does it take to convince people that you have “low everyday prices”, or that “we sell for less”, or “the customer is boss”, and the rest of the Wal-Mart homilies? According to Wal-Mart’s 1999 Annual Report, the company spent $405 million in advertising in the year that ended January 31, 1999, which happens to be more than three times what Wal-Mart says it donated to charities during the same period. All the advertising was straight corporate money, while the charitable giving includes funds kicked in by shoppers and employees, not just funds from the corporate account. Wal-Mart spends an astounding $1,109,589 EVERY DAY on image advertising. Wal-Mart literally creates a million dollar image each and every day. That’s $46,233 spent on advertising every hour of every day of the year! Over the past three years, Wal-Mart has spent nearly $1 billion on advertising. Wal-Mart spending on ads jumped by 38% in 1999 over the previous year’s total of $292 million. Wal-Mart’s advertising budget is bigger than many federal social programs. Perhaps as the volume or anti-Wal-Mart sentiment increases in volume across the nation, Wal-Mart’s reply is too turn up the advertising expenditures.
Wal-Mart also receives more bad press than perhaps any other retailer in America — at least since the anti-chain store tax movement of the 1930s. When the Wal-Mart ad comes on TV, and you see that yellow Mr. Smiley bouncing around, hit the mute button, or change channels. Better yet, email Wal-Mart at www.wal-mart.com, and suggest to management that they switch their advertising budget for their philanthropy budget, and give $405 million to charities, and spend $127 million on image ads. That would be a corporate revolution.
