Department stores shifting ad dollars

A new Borrell Associates report (Executive Summary available online) reveals that department stores have shifted $2 billion in advertising from newspapers to electronic media over the last four years, including online. In 1998, a similar Borrell study accurately predicted the fall of recruitment advertising for newspapers, and he says the same thing is happening — and accelerating — with department store advertising.

Not all is gloomy for newspapers. Newspapers are well‐positioned with their strong local Web sites to pick up some of the loss. Department stores intend to increase their online ad spending remarkably — by more than 80 percent between now and 2009. And the target that department stores are trying to find — younger shoppers — can be found on newspapers’ Web sites at far higher than average frequency — and with much greater frequency than their own newspaper readership.
This, of course, is good news for television, because that’s where a lot of this advertising shift is taking place. However, the ultimate conclusion is that TV stations also need a viable online advertising strategy to snare their share of the online ad shift, because local newspapers are much more aggressive with online advertising than their broadcast counterparts.

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