Wal-Mart must use advertising to keep its reputation from becoming an even bigger liability.

I’m quoted in an Associated Press story about Wal-Mart’s new corporate ad campaign saying that it’s smart strategy for the company to argue its message directly to the public.

The folksy television ads tell Americans that Wal-Mart creates thousands of jobs, offers low-cost health care to employees, supports countless local charities and saves the “average working family” more than $2,300 every year thanks to its low prices.

There are three good reasons why any company in Wal-Mart’s position must resort to commercials to defend itself in the court of public opinion.

First of all, there’s no other way to talk to a mass media audience without critics ripping your every word and action.  Wal-Mart’s status as an Official American Controversial Topic means every mainstream news story about the company must include the opposition perspective, even if that point of view is just more scripted hyperbole.  The AP story on Wal-Mart’s ad campaign, for example, quotes a spokesman from union-backed WakeUpWalMart.com saying that the company is “living in a bizarre state of denial” because it is trying to “fool the American public into believing it is OK to exploit millions of working families.”

Second.  The company has become political fodder – a designated “bad for America” boogey-corp of the Democratic left.  In this polarized, win-or-lose arena, politicians and their supporters can say anything they want about Wal-Mart, the more egregious the better.  Target or Costco can’t compare Wal-Mart to Nazis.  But somebody running for public office can.

Third.  The attacks on the company are hurting the bottom line.  In a recent CBS interview, Wal-Mart CEO Lee Scott mentioned a internal study that found as many as eight percent of the retailer’s customers now shop somewhere else because of the company’s reputation.  That represents tens of millions of people who’ve made a conscious decision to leave -- not necessarily because of their own experiences with Wal-Mart, but for the bad press it’s gotten regarding salaries, healthcare and other “social responsibility” areas.

Even if Wal-Mart’s corporate feel-good advertising levels the playing field just a little bit, the company will benefit greatly both politically and at the cash register.
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Associated Press  |   Wal-Mart will defend reputation in ads
Wal-Mart corporate site  |  Wal-Mart Launches National Ads Highlighting Values, Health Care, Savings, Philanthropy
AdFreak.com |  Sweet Dreams, Sam Walton
AdJab.com |  Wal-Mart goes on the offensive with new ads
BloggingStocks.com  |  Wal-Mart's new ad campaign - are you buying it?
Advertising Age |  Wal-Mart looks to refurbish image with political-style ads