Kantar Finds Retail Advertising Is Down For The Holidays
November 26, 2014 at 3:55 AM (PT)
Radio lagged far behind TV in dollars retailers spent on advertising during this year's holiday season. In a new report KANTAR MEDIA writes, "every FALL, consumers and analysts watch for the first holiday ads of the year to drop -- something which typically happens well before the first snowflakes hit, and often before the leaves even start to turn. The winter holidays bring new product offerings, innovative gift and décor ideas, festive food and increased savings to help consumers prepare for (or get through) the most wonderful time of the year—and plenty of advertising designed to show them the way.
"Retailers have a significant incentive to win in the ad wars, as NOVEMBER and DECEMBER are high-stake months: Last year, winter holidays accounted for nearly 20% of annual retail sales, or nearly $601.8 billion -- a 3.8% year-over-year increase from 2012. On average, shoppers spent $730 each on holiday shopping last winter season. With virtually one fifth of sales rolling in at the end of the calendar year, it is crucial for retailers to maximize their advertising budgets to best reach target consumers, get them into stores, and convert that holiday cheer into sales dollars. In this report, KANTAR MEDIA has examined critical trends driving the end-of-year advertising flurry, using 2013 data as a benchmark for the trends we can expect this year.
"In addition to our general advertising spend data, we’ve used our AdScope tool to analyze occurrence, expenditure, and creative data for holiday-themed ads—advertising that featured “THANKSGIVING,” “Black FRIDAY” and “Winter Holiday” messaging during the months leading up to the year’s biggest holidays. For the holiday period, we studied ads that aired from 10/28/13–1/5/14, across newspapers, magazines, radio, television, and Internet display (including both English and Spanish language ads)."
What does KANTAR conclude? The company writes, "with the average American shopper spending $730 on gifts and goods each holiday season, NOVEMBER and DECEMBER are high-stakes months for retailers. Counting on the holidays to bring up end-of-year sales numbers, retailers must inflate their ad investments to project their voice above the competition and drive shoppers to stores. By maximizing the timing, channel, content and messaging of their campaigns, advertisers can find creative ways to make the most of their budget. An early start, multicultural approach, tech focus, and high proportion of holiday-themed creative were just a few of the tactics retailers from WALMART to BEST BUY used last year to rise above the holiday clutter. With holiday 2014 retail sales projected to increase more than 4% from 2013 levels, prospects are looking good for the retail category this holiday season. With that said, only the retailers who differentiate themselves in the minds of price-sensitive, bargain-hunting shoppers will come out on top. This year we’ve already seen holiday ads hit the market, and we’ll be closely following what new strategies retailers apply in 2014 to win a piece of the holiday pie."
Download the full report here.