Department Store Ad Dollars Go Digital
(Direct Newsline)—Advertising spending from department stores is shifting from print to television, radio and the Internet, according to a new report. Department stores may increase their online spending by up to 80% by 2009, the study predicted.
The category’s overall spending has dropped by $2 billion, or roughly 24 percent, during the last four years. Much of this has switched to the previously mentioned electronic channels and direct mail, according to the study from Research and Markets.
Newspapers took the biggest hit, losing nearly $2 billion since 2001, largely driven by a drop in recruitment advertising spending. But Research and Markets noted that newspapers could reclaim some of this revenue through their strong local Web sites.
The online channel, especially newspaper Web sites, offers opportunities to reach younger consumers that are not reflected in newspaper readership demographics, the report continued.