Coles and Woolworths Ltd have slashed their spending on traditional advertising over the last year, while Aldi has rapidly increased its budget, underlining the shifting terrain of the Australian retail market.
According to figures from Nielsen, overall media spend by supermarkets in the year ending September 2016 fell by 13.4% year-on-year to A$200m. The report says that Woolworths and Coles both recorded double-digit declines in traditional advertising spending, to A$77m and A$45m, respectively. In sharp contrast, Aldi saw its ad spend grow by 16% to A$39.3m.
Nielsen also claimed that Metcash’s spending dropped by double digits to A$16.7m, but the wholesaler claimed its overall spend was up, noting: “The Nielsen data does not capture the redistribution of spend to reflect the full mix including catalogue, digital and sponsorships”.
Nielsen classifies traditional advertising as that across metro and regional TV, metro and regional press, magazines, metropolitan radio, cinema, out-of-home, direct mail and digital.