Sep 1, 2006 12:00 PM, BY KATHLEEN M. JOYCE

Call it Labor Day Gloom. As the last days of summer wind down, consumer confidence, as reported by the University of Michigan, has reached lows not seen since last October. That was when the U.S. was reeling in the aftermath of Hurricane Katrina. Americans are approaching that anniversary, as well as the fifth-year mark since the Sept. 11 terrorist attacks, with a degree of weariness.

Who can blame them? Since Katrina, prices at the gas pump have eaten into the wallets of consumers at all but the top tiers of society, based on their own driving and via added costs for goods delivered by gas-fueled trucks.

The jittery stock market doesn't help spur optimism, with triple-digit gains one day, followed by triple-digit losses another. And while the Fed has taken a breather on interest rates (after 17 consecutive increases over two years), property owners have seen the equity in their homes shrink as the real estate market deflates in most parts of the country. And Shakespeare said winter was the season of discontent.

As consumers tend toward more cautious spending, how are marketers keeping their brands ahead? Several are leveraging investments in technologies that let them target their best customers more effectively (think data, data, data!), and with greater personalization (as in online and interactive). Others are pumping resources into more hands-on, experiential components, often thanks to new tech tools. For the particulars on six cool new technologies that are making retail registers ring, turn to Betsy Spethmann's cover story on page 24.

Technology is also changing the ways marketers use premiums and incentives. For the third year, PROMO has tracked P&I spending and execution, including the growing impact of database management and the Internet. The report begins on page 33.

Finally, for the lowdown on dozens of campaigns that have made consumers sit up and take notice, check out the 2006 PRO Award finalists. Our judges selected these campaigns from a record-breaking number of entries, and they represent the smartest, most creative marketing done in the U.S. in the past year. In addition, the finalists have other attributes in common: overarching energy and enthusiasm. The marketers and agency partners behind these campaigns have boundless passion for their brands and their audiences. Dip into their work — it's a refreshing antidote to a sullen September.

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