Chicago More than half (55%) of retailers said that their 2009 advertising budget is flat this holiday season, up from 43% in 2008, according to accounting and consulting organization BDO Seidman, LLP.
Only 19% of retailers have increased their advertising budgets this year, while one quarter (26%) of retailers cite budget reductions. Of the retailers who do not expect a turnaround until third quarter 2010 or later, 50% said their holiday marketing and advertising budget in 2009 is lower.
Of the retailers who expect the turnaround to happen sooner,(i.e. second quarter 2010 or earlier), about 62% plan to keep those budgets about the same.
When it comes to advertising expenditures, a strong majority (64%) of the retailers said they will spend most of their holiday advertising and marketing budgets on print advertising, which is up from 57% in 2008. More than half (51%) of retailers are including social media in their marketing strategy this year -- a huge increase from only 4% in 2007.