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Advertising Feast or Famine this Holiday Season?

By John Shelton December 04, 2009 | 10:37am

HDTV’s are cheap! There are also plenty of jewelry specials to be had. If you watched any television, listened to the radio or read any newspapers so far this holiday season, you have been inundated with advertisements. If you have ventured out shopping, you can tell that the advertising is working because the stores are packed.

In a study by BDO Seidman, LLP, 19% of retailers have increased their advertising budgets this season. But, 55% of retailers say their ad budget is flat this holiday season. “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.

That advertising is getting people to the stores. Although people are coming out in droves to do their holiday shopping, many sources are saying that the dollars spent isn’t following suit. There was only a 0.5% increase in spending on Black Friday compared to a year ago, according to a recent New York Times article.

Advertising got the people to the stores, but unfortunately it can’t put money in their pockets.

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