increased consumer presence
When media spending increases. (Yes we said increases.)
Anyone catch last week’s interesting article in Ad Age about Wal-mart’s recent increase in media spending at a time when most retailers are cutting back on media left and right?
Discussing the Wal-mart media tab, Ad Age noted “this is a massive jump by any standard, as Wal-mart’s spending on measured media soared 55.7% to $835 million—compared with the same period the year before—according to TNS Media Intelligence.”
As we all know, the Wal-mart model is unique. The chain is known for its tight supply chain management and low overhead. And very few major retailers share the same model. Even more noteworthy, compared to two major companies (Macy’s and Sears Holdings who spend 4.5% and 4.0% of sales on marketing), Wal-mart spends only 0.5%.
As a marketer, I think it is both interesting and refreshing that marketing is now considered more than a nice-to-do. It is mandatory to compete. Brands that are investing in marketing right now are gaining market share, increased consumer presence and will be positioned better than their budget-cutting competitors.
That’s money well spent—if you ask this marketer.
