According to a study conducted in October 2009, more than 55% of retailers stated that their holiday advertising budget is remaining flat this year, up from 43% of retailers at the same time last year. However, the most interesting statistic is that 51% of retailers plan to incorporate social media into their marketing campaigns, a stark contrast from 4% of retailers who utilized social media last year. It seems as if the current trend amongst companies is not necessarily to reduce their spending but find more inventive ways to maximize their marketing dollars. Of the venues retailers are choosing to utilize for their viral marketing campaigns, 76% of retailers plan on using Facebook with Twitter being a close second at 50%.
With retailers planning to spend some of their advertising dollars venturing into social media, will we see less print advertising and broadcasts across the board? Not likely. Media outlets across the board are dramatically reducing their prices amidst the recession, giving retailers increased flexibility with their budgets to explore alternative venues. Given the current state of the economy, it is most likely that the shift from traditional media to social media will continue past the holiday season. It will be interesting to see how this affects consumer-purchasing behavior. According to a Gallup poll, 57% of consumers expect to be spending the same amount as they did last year. The average budget for holiday spending is currently at $638, just $19 higher than the estimated budget last year, the poll states.
With social media quickly being recognized by large companies as an ever-evolving tool that allows them to quickly target consumers for a fraction of the cost, it may become a staple within companies advertising strategies in the future. part of companies advertising campaigns in the future. By then though, we may see something else emerge, just in time for the holidays.