The 2009 holiday shopping season started earlier than usual and is expected to be flat vs. the same period last year. 2008 holiday shopping saw a decline of 2.4%. If all goes as planned for 2009, Reuters reports that sales will be around $810 Billion. Consumers are still weary of the economy as the unemployment rate is nearly 10%. As a result, many consumers shopping habits have changed over the last 12 months. Concerns over the economy, job stabillity, reduced credit lines and higher food, gas and utility prices have made consumers more price conscious than ever.
As a result, a majority of consumers say they are making holiday budgets and will be sticking to shopping lists when shopping. “Retailers have already prepared themselves for a challenging season by adjusting inventory and closely managing their expenses, “ says Stacy Janiak, vice chairman and U.S. retail leader for Deloitte Services LP.
As we enter the “unofficial” start to the holiday season, retailers are approaching 4th quarter in different ways. Some have limited the number of inventory they have on hand and scaled back advertising budgets during the holiday season. Others are getting creative on ways to make them stand out over the competition.
One large retailer has already started advertising that they will have 100 toys under $10. Competitors quickly jumped on the bandwagon with their own similar special offerings. Other retailers have resurrected layaway programs and Christmas Clubs. These Christmas Clubs are similar to the old passport savings account at banks where any money deposited would earn a little interest as the deposits added up. The current retailer sponsored Christmas Clubs do the same thing except dollars are put towards a gift card that earns a 3% reward based on the card balance on a certain date.
During this holiday season with consumers and advertisers being very cautious of spending, it is even more critical than ever to have a strong share of voice. Studies show that a brand which has a share of voice greater than its share of market is more likely to gain market share. It is absolutely critical to find every way to make the advertising dollars go as far as they can go. Through tough negotiations and creative thinking our buying strategists were we able to negotiate stellar promotions on top of great media buys that provided an additional 31% of the media value at no additional cost to the client. This additional 31% in media value increases their share of voice and on air presence in the market at no additional cost to the client.
Another way to increase share of voice is to tie in with a local charity to give a hometown feel. We have one local client who partnered with a leading TV station and local charity by sponsoring “The Holiday Wishes, Adopt a Class” Campaign. The client was included in over $25,000 of non-paid media over the promotion. They made an in-kind donation to the campaign and all of the dollars raised for the campaign were spent at the retailer’s location. This resulted in additional sales for the time period as well as being connected with a local feel good cause, elevating them to a true community partner. Studies show that consumers like to support companies who support charitable causes.
Integration between several types of media also helps increase share of voice by reinforcing a client’s message. For one client the plan included: TV, magazine, online display and search as well as a custom landing page to coincide with a specific product message. By utilizing several forms of media directing consumers to the landing page with a coupon, we were able to produce record sales, 50% increase in web traffic and a 35-40% coupon conversion rate.
In these tough times, it is so important to think outside the box and look at all possible options to extend your clients name and keep a client top of mind.
By: Heather Watson, Empower MediaMarketing Senior Local Buying Strategist
