Gerry Harvey warns of ad cutbacks

By By Wenlei Ma | 29 November 2011
 
Gerry Harvey.

Australia's fourth largest advertiser Harvey Norman may cut back its newspaper, television and catalogue advertising as it looks to spend more on digital.

As reported by The Australian, the retail giant's chairman, Gerry Harvey, indicated he would reduce or cull advertising spend from more traditional channels including television and print as a result of increased investment in online.

Last week, Harvey Norman launched its e-commerce platform, which will see a selection of its products sold through its website. Products are delivered by or picked up at the customer's local store instead of being distributed through a central warehouse.

Harvey told The Australian: "Because we're spending on the internet, we could drop our advertising in the press, TV and catalogues."

Harvey Norman is one of Australia's largest advertisers, with an estimated main media spend in the first six months of 2011 of $66.2 million, according to Nielsen.

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