Whether or not the economy is headed for a double-dip recession has become a hotly contested issue among British retailers. Almost every day the news is awash with headlines predicting the fate of consumer spending after VAT jumps to 20 percent in the New Year.

There was some encouragement for the industry earlier this month however, when a report from accountancy firm BDO, forecasted that while retail spending will come under pressure in 2011, a double-dip recession will be avoided. So, with this in mind and to keep tills ticking over as consumers become more discerning, retailers need to be extra confident that their marketing strategies are designed to capture the attention of their target audience in the right way and at the right time.

According to our own industry research*, retailers are taking a well measured approach and preparing for the VAT rise by fine tuning their marketing and sales strategies for 2011. We found that 30 percent are planning to shift their focus away from mass marketing techniques to invest more time and resources in tailored campaigns. In addition, 18 percent of those we spoke are expecting to see the industry pay more attention to the measurement and ROI; terms which have become more widespread in the post-recession environment.

In terms of what tools and tactics are likely to be big next year, we found that almost a third (30 percent) believe that video advertising will be the most heavily invested marketing tool, closely followed by ads on personal social networks (28 percent). Vouchers, promotions and special offers received 17 percent of the vote, followed by interactive ad banners at 7 percent and sponsored search engine links at just 6 percent.

A call for more targeted and measured campaigns with a greater focus on video advertising is certainly in line with what we are seeing from our own customers, who are looking to increase their efficiency not only in the short term but well into 2011 and beyond.

While at this time of year many retailers are usually fully focused on the upcoming Christmas sales frenzy, it’s certainly a positive sign that they are recognising the need to spread their reach by freeing up resources to invest more heavily in digital campaigns. Despite the claims of doom and gloom that are being widely touted, retailers can finish 2010 on a high, confident that next year will be far more prosperous than the headlines would all too often have us believe.