Yurman Medium

Yurman Medium

Jewelry advertising cost down for the excavations in recession

As companies cut their budgets in line with the slowdown in the sales promotion spending in traditional media has been reduced through the Board for the jewelry industry, statistics show the data.

If it seems that lately there are fewer ads for diamonds, fashion jewelry and watches - and either radio waves or thrown in the pages of your favorite magazine - it's not your imagination.

In Birks and Mayors, a Montreal Based in the chain, with stores in Florida and Georgia, CEO Thomas Andruskevich not consult all balances have passed your company listing in 2008 and 2009.

While experts warn against retailers out of sight during a recession, the decline of this time is accompanied by a change in the world promoting himself as traditional media such as print losing ground as in a world that is tied to your BlackBerry and laptop computers.

Spending on print media and billboards has decreased this year, while spending on the radio is flat or down slightly. Why? He says that in this context of recession, all traditional media promotion are basically less effective.

"People are spending less money," says Andruskevich. "That's a proven fact. No matter how hard you promote, much of it is in vain. If [consumers] have no money to spend on jewelry, promotion will not change their mentality. "

Information obtained from Adweek (which, like the National Jewelry is part of Nielsen Business Media, and is owned by Nielsen Co.), shows that lots of jewelry will Birks and Mayors of the route when it comes to traditional promotional spending.

Inside the numbers

Between 2007 and 2008, overall spending jewelry on cable television declined by 24.3 percent, the radius was reduced by 24.7 percent and the external promotion fell 5.7 percent.

Spending moderate increase in advertising for both print and TV network, but in general the jewelry store spending across all media fell 4.6 percent.

Ellen Fruchtman, president of Fruchtman Promotion, said that the drop in advertising spending due to a combination of a general decline in spending due to the slowdown economy and a shift of some - but not all - of dollars of advertising for the Web.

Information for the first quarter 2009 show results mediocre, with jewelry store ad spend by 17 percent across the board in all one category compared with the first quarter of 2008.

"What they lack for that?" Says the store spending less on promotion. "As a promotion person, I can say it needs to be there promotion, and I think so. But for the same reason, it is easier said than finished. You have to pay the bills. "

Traditional media, showed only signs of life in 2008 were the television networks, for which ad spending rose 4.2 percent, and print, where spending was a surprising 8.1 percent.

Years ago, the big chains - ABC, CBS, NBC and Fox - had less competition, but today there is a channel for everything from care lawn to horror films.

Fruchtman says the slump in network TV advertising spending was due to networks that offer better rates.

"Everyone has become a competitor to the television," Fruchtman said, adding that the increase should be devoted to printing the programs manufacturer cooperation.

It recommends the promotion journals in bridal fashion, claiming it is being read by those already committed, with rings on his fingers.

But Andruskevich says the company does not increase its spending on network TV, investing in a cooperative program with a well known watch brand in 2008, an exception for the 69-store chain that normally do not run TV ads.

Birks and Mayors not increased their print spend and actually changed its strategy by pulling ads from local newspapers to promote, rather than the Wall Street Journal, whose base reader has an average income higher than that of many local newspapers.

The information also analyzed Adweek advertising spending in the jewelry, a section which covers a wide range of brands, including Hearts On Fire, Tacori and David Yurman, and names like Rolex watches, TAG Heuer and Timex.

"We feel that the ads were great," says Andruskevich. "We feel this was an effective program and was something I was excited."

Jewelry-branding was reduced by the Board between 2007 and 2008 and the first quarter of 2009, with one exception: For researchers were unable name, radio promotion for brands of jewelry (not shops) jumped 78.8 percent between 2007 and 2008, while promoting advanced outdoor 1.3 percent in the first quarter of 2009.

A slight change in line

Mike Sprouse, Promotion Officer at Epic Promotion says the New York-based company, study of several hundred executives promotion indicates a "slight" change to promote going to the Web in 2009.

While a number of the slowdown in the traditional promotional spending is attributable to general economic conditions, some of those dollars are finding a new home on the Web.

"We began to see that [changes] in the first quarter of this year," he says.

Most respondents said the trend will accelerate in 2010.

The reasons companies are choosing to go online with your ads are varied: It is an easy and quick to reach potential customers, the technology makes it easy to track who is looking at the ads and when they do, and relatively inexpensive.

"It's cheaper, it's always nice when you face a recession and a budget down," says Sprouse.

From now, the information detailed online ad spending in the jewelry industry is weak and not useful for comparative purposes.

How much and how fast the shift to online ads, will run in the jewelry industry remains to be seen however.

Nielsen information online on the subject dates back only to 2007 and shows that between May and December 2007, the industry spent $ 2.2 million U.S. dollars in online promotion. The figure for all of 2008 totaled $ 4.3 million, while $ 1.1 million added to the first months of 2009.

"For the industry jewelry, let's be honest, "Fruchtman says." This is an industry that is not progressive or forward-looking \. Traditional media remain strong because it is an industry that resists change. "

"The general public still want to watch TV and still read popular magazines, says. "They will continue to drive cars, so it will still on billboards. The only traditional media in its current form is at extreme risk is the newspaper. They live in a society of 'now, not "what happened yesterday reported today."

But that is not necessarily negative for some means.

While television and outdoor make a comeback, Fruchtman says retailers must change to promote the Web girlfriend because 85 percent of that market is doing their research on the Web, even if they are buying there.

He recommends investing in paid search, where a company pays a search engine company like Yahoo or Google, for better placement to link your website in search results.

Andruskevich Birks and Mayors says has already had success with web promotion and promotion is raising its online spend in 2009. But that does not mean the company is abandoning his promotion standbys elderly.

"If you are driving consumers to your site, then you are missing the boat, "says Fruchtman.

"I think it [traditional media ad] back," says Andruskevich. "I know that in our specific case, we would be spending more money in the categories that happened before. In the jewelry industry, I firmly believe this has more to do with recession with a shift from traditional promotion online promotion.

For a look at where jewelry stores and jewelry brands were extending its advertising dollars from 2007 until the first quarter of 2009, Ad Spend Jewelry discharge. Article Resources http://www.jewelrywholesale-cn.com/ of wholesale jewelry.

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