Is loyalty dead?

If it isn't dead, it sure is holding on for dear life.

The recession is partly to blame. Commoditization is partly to blame. Marketers are partly to blame. The 'buy less, use less, want less' movement is partly to blame.

Fact is, consumers want the best thing available today. Whether it's better, faster, cheaper or all of the above. Whatever it is, what's generally true is that it won't be the same thing today as it will tomorrow.

DirectTV seems to be tuned in and riding this insight to the bank. That is, if said bank is a bunch of new subscribers who won't be paying a red cent for the next 5 months.

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Right. This spot does nothing to establish product superiority. No mention of better service, more channels, clearer reception, free additional services. Nor does it even attempt to demonstrate parity. In fact, it does nothing but dangle a carrot (5 free months) to get people to sign up.

I cringe as I consider the fine print. Not to mention the folks most likely to jump at this deal. I can only imagine there's a slew of people out there who either can't, or aren't able to pay their cable bill right now. Why not pull the plug on your cable service, give DirectTV a call and get cozy for 5 months until the free period expires?

This solves a short term consumer need, but where can this possibly get DirectTV long term? I should say, where other than sitting with a bunch of angry new subscribers who failed to read the fine print and at the end of 5 months will be trying to cancel what's no longer a free service?

Spending money to produce and air television commercials that give your product away for free seems like a really bad strategy to me. What am I missing?

I'm picking on DirectTV because it's just so obvious here. Certainly, this is not the only brand nor category, doing itself such monumental disservice. When we succumb to price wars, we need to be extra careful about reinforcing higher level brand benefits and emphasizing value beyond price.

There's a reason luxury goods tend to hold their own in a down economy. It's because those companies don't cut their prices to attract 100 customers today to generate the revenue 10 customers would have brought 3 years ago. Instead, they offer subtle reminders of what makes them special. They sit tight. They keep their prices locked. They hold their chin high and throw a couple loaners to Jay Z and Brangelina so as they hit the red carpet, the people at home watching TV see the stuff they wish they could afford and drool. This is how you protect a brand.

Morale of the story is this. We all need to buy back a little integrity lost over the past few years. Offering a discount or a special incentive, fine. Giving your product away for free without any acknowledgement about what makes it good in the first place? bad.

This may be Direct, but it's way OFF STRATEGY.