Advertising and marketing budgets at the nation’s leading retailers are taking a hit this holiday season, according to a new survey from BDO Seidman LLP that was conducted after the financial market meltdown.
In the survey, 32% of chief marketing officers at leading US retailers said that their holiday marketing and advertising budgets have been reduced this year. The budget is remaining flat for 43% of retailers and increasing for 25% of retailers.
Print advertising will account for the majority of the advertising and marketing budget at 57% of retailers, while 21% will focus on broadcast outlets, and 19% will focus their spend on Internet advertising, including social networking sites.
Even in the face of the economic downturn, there is still an interest in going green, with 43% of retailers saying they will be increasing their advertising and marketing focus on green products this year, up from 37% in 2007.
“This holiday season, we can expect that advertising buys will be very targeted, and in some cases more conservative,” said Catherine Fox-Simpson, a partner in the retail and consumer product practice of BDO Seidman, in a statement. ”Historically, in tough times, campaigns become less flashy, more sentimental and heavily focused on value-added items, such as sustainable products.”
The survey of 100 chief marketing officers at leading retailers located throughout the country was conducted in October.
