Holiday Advertising Season to be Compressed This Year

Now that the political ad spending has ended, media companies have space to offer holiday marketers. But will it be too little, too late? Analysts say the holiday ad season will be compressed this year.

STRATA issues a quarterly survey of ad agency outlook and this fall, the survey indicates that heavy political advertising has impacted holiday-related ad campaigns. Some agencies and marketers have noted that they will not advertise as much as usual. This is because the compressed ad season has left a smaller than usual inventory to choose from. And, a lower inventory means prices for media spots may be higher than some are willing to pay.

For many buyers, TV remains the top medium. This holds true both for political organizations and retailers. So if any format will benefit from marketers hoping to connect with holiday shoppers, it will likely be TV.

Agencies also say the business outlook for the rest of the year has dimmed. Nearly half of surveyed agencies believe they won’t see any growth in the last few weeks of 2012. In addition, about 1/3 of agencies indicate that growth prospects will be limited until after 2013. While agencies are trying to negotiate the best media deals on behalf of their clients, they’ll also be out searching for new clients for the rest of this year, and into 2013, in what is expected to be a very challenging business environment.

[Source: TV Still Top Ad Buy. Gotostrata​.com. 5 Nov. 2012. Web. 13 Nov. 2012]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.