After experiencing a year of significant shocks to their systems, credit card operators are poised to once again increase ad spending spending. In 2009, the industry has been plagued by bad press surrounding high interest rates which coincided with a time of overwhelming personal indebtedness and rising unemployment across the country. But credit card companies ranging from American Express to Chase have increased their mailing significantly in the past month, according to Mintel CompereMedia.

The research firm says that about 180 million U.S. consumers received credit card offers in October 2009.  This volume compares to the 134 million offers made in September 2009.

According to Andrew Davidson, SVP of Mintel Comperemedia, “[c]redit card mail volume is still down significantly from a year ago, but October’s sharp increase is an excellent sign for the industry. With recent green shoots of economic recovery, card issuers feel more confident about the future. I anticipate that this winter will mark the start of a turnaround in credit card direct marketing that will be sustained through 2010. This could very well be the beginning of the end for credit card direct mail declines.”

The new credit card offers are well-timed for consumers who want to make purchases for the 2009 holiday season and who feel more optimistic about their personal financial situation for next year. Davidson also indicates that credit card issuers will be releasing large mailings in 2010 with respect to the CARD act.  New provisions which are due to take effect next year require lenders to refrain from a number of historical practices that hiked fees and interest rates for borrowers. As lenders increase their mailings to explain their new business standards  next year, they’ll likely use the opportunity to market their services to clients as well.

[Source: Mintel  CompereMedia release, 11.19.09]

For aficionados of the white fluffy stuff, the best season of the year is upon us.  But ski areas and resorts suffered along with almost every other sector of the U.S. economy last winter. Both visits and ticket sales were down. For the upcoming season, industry experts predict that mountain resorts will face revenue declines ranging from 3-5%. Only a small percentage of the population skis regularly, especially given the general difficulty and expense associated with the sport.

So what changes  are ski resorts planning with respect to marketing? Operators will follow some of the same strategies they implemented last year. This means advertising discounted season passes to both local and regional skiers. To lure skiers from further away, resort operators are discounting lessons or amenities such as meals.

Overall, the industry seems to be trending toward larger resorts that offer a range of activities. By marketing services such as tubing, snowshoeing and ice skating, resorts can appeal to a broader consumer group and secure a steadier revenue stream. Even family members who do not ski or snowboard may want to spend a weekend enjoying a spa or fine dining at a resort.

Resorts are expecting some rise in interest as a result of the Winter Olympics which will be held in British Columbia in 2010. And several states which rely on tax revenue generated from ski tourism are promoting the Learn a Snow Sport Month. To maintain market share and to generate tax revenues, both private operators and public sector agencies may be increasing their marketing programs in January to prompt consumers to enjoy the great outdoors.

[Source: Steinbaum, Glenn. How the ski industry fights this economy, The ski Channel, 11.18.09; Clarey, Alex. State Governors…, The Ski Channel, 11.20.09]

Amazon might have been the first to launch an e-reader device that captured the attention of a significant number of consumers but its dominant position faces some serious threats. The 2007 introduction of its Kindle generated plenty of buzz and competitors. The book industry in general has suffered declines in recent years but Forrester Research sees the e-book and e-reader device market as a bright sector and expects it to grow. The research concern predicts about 1 million devices will be sold during the current holiday season and perhaps another 6 million units will sell  in 2010.

All of these sales won’t go to Amazon however. Several other companies have introduced devices including Nook from Barnes & Nobles, Reader from Sony and Digital Reader from Irex. These marketers also have to keep Apple on their digital screens. According to Flurry analytics,  the nature of applications released to the App store has shifted dramatically from July to October of this year.  Books now represent 20% of the released apps while games have dropped from 17% down to 12%.  This shift underscores a point made by  Rotman Epps of Forrest Research: “[e]-readers are a transitional technology.” The long-term future of e-reading may well be linked to the ever-evolving smart phone.

It’s too soon to predict the lifespan of e-readers but as Rotman Epps also notes, “2009 is a breakout year” for these devices. Manufacturers and retailers will be increasing ad budgets as they battle for market share.

[Sources: Rose, Adam. Kindle Killers? The Boom in New E-Readers, Time, 10.11.09; iPhone Gets Serious about Books, Flurry, 11.01.09]

Online retail sales continue to grow. Forrester Research predicts that consumers will spend $44.7 billion on online shopping this holiday season. That’s about 11% of the amount consumers will spend at traditional stores, projected to reach $392.9 billion. By now, consumers of all ages are well-versed in purchasing books, CDs, and apparel online. But there’s one category where online retailing has yet to achieve a significant percentage of sales activity: luxury.

Writing for BusinessWeek, Lauren Sherman points out that marketers like Ralph Lauren and Tiffany have gradually created an online presence for themselves. But others, like Marc Jacobs and Chanel do not want to sell online, especially when it comes to apparel.  In general,  “luxury retailers argue that customer service online isn’t what it’s like in a boutique, and shopping over the Web could ruin brand perception.” Despite the concern about brand degradation,  Pam Danziger, president of Unity Marketing, calls the attitude “outdated”. Certainly, these retailers are concerned about the purchasing experience for consumers of luxury goods. But as consultant Kate Newlin points out, today’s consumers know that online purchasing allows for a “heightened customer service experience because of convenience and efficiency.”

Luxury product marketers may be forced to build an online presence and redefine what this unique shopping experience entails in order to maintain market share. There are a couple of factors that could lead these marketers to the online channel sooner rather than later.  First, with every passing year, a larger percentage of the population has grown up using the Internet and has a general comfort level when purchasing goods online. Second, conspicuous consumption is currently out of fashion and purchasing items online allows higher-income consumers some privacy. Nobody is predicting when the shift to online might occur in luxury but it’s segment worth watching.

[Sherman, Lauren. Online Luxury Retail Remains Elusive. BusinessWeek, 11.19.09]