In part, says Catherine Fox-Simpson, a partner in BDO Seidman's retail and consumer product in Dallas, that's because "stores are recognizing that at the moment, it's chic to be cheap and everyone is very focused on saving money. Advertising isn't going to change that mindset."

In particular, she says, shoppers are not going to be caught paying full price for anything, which means that marketing messages "aren't about staying in front of customers--it's about getting in front of them when you have the very best deals."

An interesting finding is that the economy has not dampened retailers' commitment to green merchandise, with 43% saying they are increasing their advertising and marketing focus on green products this holiday season--an increase from 37% last year. "Historically, in tough times, campaigns become less flashy, more sentimental and heavily focused on value-added items, such as sustainable products," it says in its report.

Print continues to be the favorite medium, with 57% of the CMOs reporting that they will spend the majority of their advertising and marketing budgets on print advertising. About 21% are focusing on broadcast outlets, and 19% are concentrating ad buys on the Internet, including social networking. The firm polled CMOs of retailers with more than $100 million in annual sales.

This news story is important. I recommend that everyone read it.