Internet Competition Spurs Catalogers’ Ad Spend Increases

Catalogers ad spend will increase to $1.3 billion in 2007, reflecting increasing Internet competition, according to estimates in a recent study on advertising ratios and budgets from market research firm Schonfeld & Associates. By comparison, online stores Amazon.com and eBay plan to increase ad spending this year by 11 percent and 21 percent, respectively. Other data revealed in the study:

* Computer manufacturers, such as Hewlett-Packard, will increase ad spending by 5.3 percent.
* Retail department stores, including such catalog mailers as J.C. Penney, will spend $4.3 billion in 2007, up 7.5 percent from 2005.
* Variety stores, such as Target and Wal-mart, will spend $7.9 billion in 2007, an increase of 13.3 percent.

To learn more about Schonfeld & Associates “Advertising Ratios & Budgets” study, visit http://www.saibooks.com