Blockbuster splits with Ad Agency...It truly is the end for Blockbuster

Blockbuster Splits with Doner Advertising.
Agency Said It Resigned Account as Retailer's Ad Spending Plummeted

I said it in a post I did a couple of weeks ago and I'll say it again...It really looks like Blockbuster is going under. Blockbuster has apparently run out of money to advertise its failing business.

Movie rental giant Blockbuster and its creative agency of record, Doner, are parting ways after nearly a decade, the agency said.

The status of Blockbuster's media account, which is handled by Camelot Communications, Dallas, is unclear.

Representatives for Camelot could not be reached. Blockbuster did not return calls.

'No advertising spending'
Doner Chairman-CEO Alan Kalter said his agency in September chose to resign the account despite a 10-year relationship with Blockbuster due to a plummet in ad spending at the retailer: "There is no advertising spending whatsoever, currently or forecasted," Mr. Kalter said.

Marketing spending at Blockbuster has roller-coasted in recent years, according to TNS Media Intelligence figures.

U.S. measured media spending for Blockbuster totaled $65 million in 2004, then more than doubled to $154.2 million in 2005, before sinking to $44.7 million in 2006, according to TNS.

But for the fist six months of this year, Blockbuster spent $86 million, of which $80.7 million was devoted to marketing the online store, according to TNS.


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