Holiday Ad Budgets Flat: Study
More than half (55%) of retailers say their 2009 advertising budget is flat this holiday season, up from 43% in 2008, according to a study conducted by accounting firm BDO Seidman LLP.
Only 19% of retailers have increased their ad budgets this year, while a quarter cite budget reductions. Of those who don’t expect a turnaround until the third quarter of 2010 or later, 50% say their holiday marketing and ad budget is lower in 2009. And of the retailers that expect a turnaround in the second quarter of 2010 or sooner, 62% plan to keep those budgets about the same.
While over half of retailers (51%) are following the social media buzz and including it in their marketing strategy—up from only four percent in 2007—don’t count out traditional media. Sixty-four percent are reporting they will spend most of their holiday ad and marketing budgets on print, up slightly from 57% last year. Online was where 18% are spending the majority of their dollars, while 14% cited broadcast and 5% outdoor advertising.
Of the retailers going social, 76% will focus on Facebook, while 50% are using Twitter, 14% MySpace and 14% YouTube. Ten percent will use all of these media.
The survey also showed that green isn’t necessarily the color of the season. Only 35% are increasing their push of eco-friendly products for holiday 2009, down from 43% last year but on par with 37% in 2007.
“Holiday advertising budgets are flat, but retailers are getting more bang for their buck due to significant price reductions for ad space across all media,” said Steve Ferrara, a partner in the retail and consumer product practice of BDO Seidman in a statement. “With the recession still top-of-mind, we can expect advertisements that emphasize tradition and cheer, while also promoting discounts and value.”
The BDO Seidman Retail Compass Survey examined the opinions about holiday 2009 of 100 CMOs at leading retailers throughout the country. The survey was conducted in October 2009.
