Walmart, Target, Kohl's Cutting Holiday Ad Budgets
by Sarah Mahoney, MediaPost
Consumers may be getting closer to their holiday shopping deadlines, but it looks as if large retailers are relying less on advertising to win them over.
Kantar Media says national spending from the 10 biggest-spending brands is down 2% so far, from about $1 billion last year to $986 million at this time.
It also says advertising on Facebook is off sharply, dropping 34% to $157 million, citing data from Pathmatics.
In TV, Walmart is spending 22% less than it did last year, Target 15% less and Kohl’s 10% less.
Of the top 10, only Amazon (up 198%) and Kay Jewelers (up 16%) have dialed up seasonal TV spending. And only three—Walmart, Amazon and Kohl’s — have ramped up their Facebook budgets.
Overall, Kantar says it detects a decline in holiday ads hyping specific days, such as Black Friday and Cyber Monday. For instance, it found that retailers spent just $9 million on Cyber Monday ad messages on TV, with that spending coming from only 11 advertisers. That’s down considerably from $19 million from 12 advertisers last year.
“Retailers are now often offering discounts both before and after Black Friday, creating less urgency around Black Friday on all sides,” Kantar says.
And easy access to fast internet connections means there’s no need to wait for Cyber Monday. “Increasingly, retailers need to maintain wallet share not just during Black Friday but throughout the entire holiday season, a particular challenge during a year like this one where Thanksgiving has fallen much earlier than usual.”
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