The World's Most Innovative Companies

Smart ideas for tough times: The 50 companies that make up our annual ranking nurture cultures that value creative people in good times and bad

BusinessWeek, April 17, 2008 — Suddenly, innovation has a bull's-eye on its back. As the recession debate shifts from "what if" to "how long," slashing research and development budgets just got a lot more tempting. That high-risk product in your pipeline? It's about to get much more scrutiny. And the "chief innovation officer" your CEO brought in last year to show his commitment to creativity? He'd better start proving his worth. Outside consultants are starting to pick up on the effects of such belt-tightening. "I'm seeing it in my business," says Jeneanne Rae, president of Alexandria (Va.)-based consulting firm Peer Insight. "There's this sense of which shoe's going to drop next."

Others are seeing two camps emerge. "One is saying times are tough, so it's the most important time... continue reading

Study: 60% Of Large Companies Cutting Marketing Budgets

Silicon Alley Insider, April 8, 2008 — Marketing execs polled by MarketingSherpa for its "Marketing During An Economic Downturn (pdf)" report are giving a version of a theme we've heard a lot of, lately. The storyline: big marketers are cutting back overall budgets this year, but not not online spending, which is being largely left intact or getting a small increase in 2008.

Total budgets down: 60% of large companies had either cut or are planning to cut marketing budgets 2008, the survey says, compared to 29% of midsized marketers and only 13% of small ones. Only 16% of big marketers said they were increasing budgets, and 19% reported no change.

Recession Can Be a Marketer's Friend†

From Soap Operas to IPods: History Suggests Slumps Spawn Innovation

Advertising Age, March 25, 2008 — The massive bailout of Bear Stearns from the brink of bankruptcy could be the first of many financial rescues needed. Despite double-digit plunges, U.S. housing is still overpriced by historical yardsticks. Retail sales have gone from slow to declining, and the consumer-spending binge that propped up the U.S. economy for years may not return for a long time.

In short, it's a great time to be in marketing.

A Ripe Time for Open Innovation

Recessions present a good opportunity to collaborate with others on finding, developing, and marketing new ideas

BusinessWeek, March 19, 2008 — With the economy softening, it's tempting for companies to turn off the lights and shut the door on innovation efforts until things pick up. But while this might look like a smart move, the impact—lost momentum, team dispersion, and wasted investments—is less than desirable.

It doesn't have to be this way. One of the best options for recessionary times, and, some would argue, even in expansive times, is to join forces with another entity with complementary innovation goals. Open innovation is about connecting with others to find new ideas and, often, to co-develop and co-market them.

As Message Misses Mark, Target's Profit Drops†

Wall Street Journal, February 27, 2008 — Target Corp. is finding that its "expect more" message doesn't go over as well when shoppers are facing a possible recession.

After long benefiting from an image more upscale than that of archrival Wal-Mart Stores Inc., Target finds itself on the losing end of the marketing game as Wal-Mart hammers home its "Every Day Low Prices" mantra to shoppers ready to cut back on cheap-chic.

On the Web, Signs of a Click Recession†

Google Feels Pinch As Ad Growth Slows; Sweeter Deal for Yahoo?

Wall Street Journal, February 27, 2008 — Internet advertising may be showing itself more vulnerable to a consumer slowdown than many in the industry had hoped, according to new search-ad data released this week.

The report from research firm comScore Inc. showing a decline in the number of consumer clicks on Google Inc. search ads in January amplified existing concerns about the effect of a broader economic slowdown on the Internet. Many online-ad experts have played down such worries, predicting any economic weakening will be offset by a continued shift in ad spending from traditional media to the Internet. Google Chief Executive Eric Schmidt said the company hadn't seen any impact from macroeconomic softening when the Internet company reported earnings Jan. 31. But some investors and analysts... continue reading

Is It a Recession? Marketers Seem to Think So

Let the economists and politicians debate whether the American economy is in a recession. Madison Avenue is already battening down the hatches.

New York Times, January 28, 2008 — Let the economists and politicians debate whether the American economy is in a recession. Madison Avenue is already battening down the hatches.

Since September, Wal-Mart Stores, the nation’s largest retailer, has built its entire current advertising approach upon this bald premise: “Save money. Live better.” Skeptics wondered at the time whether Wal-Mart and its new agency, the Martin Agency in Richmond, Va., part of the Interpublic Group of Companies, were fixating on price at the expense of other attractions like fashion or breadth of merchandise.

But the economic problems that followed — falling prices for houses, tightening credit and the gyrations of the stock market — vindicated their decision.