Amid Ad Spending Cuts, Retailers Rethink Campaigns
Fresh data from Entertainment Data Oracle (EDO) reveals a shift in holiday ad campaigns from the top retailers. EDO measures TV ads through search engine volume, which the company says quantifies consumer ad engagement minutes after an ad goes on the air.
“As a result of inflation, major retailers including Target, Walmart, Macy’s and Kohl’s have been rethinking their holiday ad campaign strategies and have been pushing out fewer ads than years prior,” an EDO spokesperson said, adding that the move “seems to be working out in their favor.”
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In its analysis, EDO said the estimated expenditures for the Walmart and Kohl’s holiday campaigns were down 29 percent and 39 percent, respectively, compared to holiday campaign spending at this time last year. Yet, engagement was up.
EDO said Kohl’s and Walmart holiday ads “have been over 10 percent more likely to drive search for the brands compared to their non-holiday-themed ads, driving more engagement per person with their holiday campaigns compared to a year ago.”
EDO then noted that despite a 17 percent decline in holiday campaign spending at Macy’s, “holiday ads have generated 12 percent more searches for the brand this year compared to the same time last year.” EDO said viewers were also 10 percent more engaged with Macy’s holiday ads this year than a year ago.
EDO said the greater holiday campaign impact with lower overall spending “is a result of strong creative decisions — the most-aired holiday creative for Macy’s this year, ‘Give Love, Give Style’ (an extra 30 percent off), was 51 percent more engaging than the brand’s average [fourth-quarter] 2022 creative.”
EDO also noted campaigns from Target that began earlier, well before Black Friday, boosted consumer engagement.
