Posted on 06/27/2002 3:06:41 AM PDT by Liz
The scandal swirling around Martha Stewart is starting to make some of her advertisers nervous.
Several companies that buy space in her magazines said they are monitoring the crisis — and experts said advertisers may abandon the enterprises.
California Closets spokeswoman Jan Schlesinger started paying close attention to Stewart's insider-trading woes this week.
"We're definitely watching it, because it can get squirrely," she said. "We have a marketing committee meeting tomorrow, and I bet they're going to be asking questions about this."
Restoration Hardware, which bought space in two issues of Martha Stewart Living this spring, "absolutely would" take the scandal into consideration if it were placing more ads.
Image Is Everything
"Her empire is based on her character and image," spokesman David Glassman said. "A person like that shouldn't even come under suspicion because her entire brand is based on her as a human being."
Pension fund TIAA-CREF said it is sticking by Stewart, but first-time advertiser Spa Palace is keeping an eye on the headlines.
"It depends on how far the case goes," marketing manager Maira Briceno said.
Martin Walker, a magazine consultant with Walker Communications, predicted other publications will try to take advantage of Stewart's vulnerability.
"All the competitive sales people are going to go out and say [to advertisers], 'Do you really want to identify yourself with Martha?' There are skittish mainstream advertisers who avoid anything controversial," Walker said.
It doesn't appear any firms have yanked ads from Stewart's magazines, syndicated TV show or CBS' "Early Morning Show," which runs a Stewart segment.
Depends on Shoppers
Scott Donaton, editor of Advertising Age, said that if consumers support Stewart, most companies won't pull their ads.
"But some will care. There will be some that will say, 'As long as there are questions, I don't want to be associated with it,'" he said.
And if Stewart's minions turn on her, it could be disastrous. As few as 20 letters from consumers to advertisers could scare them off, Donaton said.
"U.S. advertisers tend to be very conservative," he said.
Tom DeCabia of media-buying agency PHD said Stewart's TV show is not a ratings winner — so it isn't popular enough to weather a big advertising exodus.
Significant ad losses would force the 150 television stations that carry the show to decide "whether to cut bait and look for other properties to air," he said.
"This story could get real ugly."
Interesting.
Twenty FReepers needed to contact Stewart advertisers so the prissy Dem donor goes to the poor house!
This Wall Street scandal broke right before she was getting ready to host a democrat fundraiser for Senatorial candidates. The event was cancelled.
So, yes, I do think there is a definite connection. She has been a long-time supporter of both Clintons (remember her decorating the White House for Christmas..it was a TV special).
Thus, my conclusion is that she has REALLY ticked off some people in the New York press and has lost her immunity from press scorn. OR she is being thrown out as a sacrificial lamb, and there are bigger fish to fry that we are being distracted from noticing.
"Despite" her association? I would say because of it......but then I'm eternally optimistic....
Betcha they get a heck of a lot more than twenty.
Definitely freepable as justice may not be done. With the mention of marketing meetings and jittery advertisers, a little citizen/consumer contact with them may have an effect: "I've been following this story closely and MS is starting to look like she broke the law. I think that your company and products would not want to be associated with the same. Just wanted to let you know how I felt" type calls could have some impact. I do feel that way, by the way. Elitist envy? Not. Equal treatment? Definitely.
Anybody know who the advertisers are?
COULD?
It already is.
First laugh of the day....kudos!
Thanks for updates on MSO's decline.....LOL.....
What's she worth now? Buck fifty?
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