Leading retailer advertising expenditures in 2011 up 1.6% year-over-year, participation in Free Standing Insert coupon promotion pages up 30.7%, digital coupon events up 40.4%: Kantar Media
March 7, 2012
– Kantar Media reports that retailer advertising expenditures increased 1.6 percent and retailer participation in Free Standing Insert (FSI) coupon promotion pages increased 30.7 percent in CY 2011 versus CY 2010. Additionally, digital coupon events increased 40.4 percent during this period across the leading retailer websites monitored by Kantar Media.
These data are the first to become available from Kantar Media’s DirectHEAT, a new service that enables Consumer Packaged Goods manufacturers to more efficiently understand retail opportunities, thereby enabling them to save time, avoid surprises, and grow their business with strategic retail partners.
“Retailers and manufacturers are working together to implement integrated advertising and promotion programs that reach shoppers in the home where they are creating shopping lists and planning shopping trips. However, important differences in advertising and promotion tactics were observed among leading retailers,” said Dan Kitrell, Vice President of Marx Account Solutions at Kantar Media.
“Manufacturers need to understand which retailers are increasing their ‘share of voice’ to drive more trips and win key weeks with their shoppers. Additionally, manufacturers must understand the strategic role of their categories at each retailer together with how their brands both complement and compete with other brands within these categories, including private label brands,” said Kitrell.
Top Retailers by Channel
Significant shifts in advertising and promotion activity were observed among leading retailers across the Mass, Food, Drug, and other retail distribution channels. For example, Walmart decreased total advertising expenditures 27.2 percent across the 18 media monitored by Kantar Media while increasing their participation in FSI promotion pages by 677.2 percent and having 989.6 percent more digital coupon events distributed on Walmart.com during CY 2011 versus CY 2010.
“Retailers are targeting shoppers in the home to drive trips, transactions, and profits for their stores. Manufacturers may be able to gain a competitive advantage by aligning their promotion timing with weeks in which retailers have greater advertising and promotion activity. Higher levels of weekly retailer advertising and promotion may translate into increased retailer share of voice with the shoppers, increased shopper traffic into the stores, and increased dollar sales across departments, categories, and brands,” said Kitrell. “Some manufacturers are leveraging the strength of their brand portfolios as part of corporate scale themed events that ‘stack’ retailer-aligned advertising and promotion support to break through the clutter with shoppers, improve the return on promotion programs with retailers, and convert category shoppers into brand buyers in the store during these peak weeks.”
DirectHEAT, which provides retail insights, was designed in cooperation with shopper marketing and retail account teams at leading Consumer Packaged Goods (CPG) manufacturers to align the right programs with the right retailers during the right weeks. DirectHEAT integrates industry-leading retailer advertising insights across 18 television, radio, internet, newspaper, magazine, and outdoor advertising media monitored by Kantar Media with census-level retailer FSI promotion intelligence and digital coupon activity on retailer websites.. DirectHEAT delivers actionable competitive insights in easy-to-use alerts, calendars, and tools.
“DirectHEAT addresses a critical knowledge gap in the industry that has been identified by shopper marketing and retail account teams. CPG manufacturers will now be able to better understand how retailer advertising and promotion activity influences shoppers on their paths-to-purchase, impacts program effectiveness, and increases overall sales,” said David Hamric, General Manager Kantar Media Marx. “We continue to observe significant variability in weekly retailer advertising and promotion activity which contributes to variability in weekly share of retail sales. Given the significant investments being made by manufacturers in these retailer programs, our clients may realize a positive return on their investment in DirectHEAT by improving the results of as few as just one retailer program,” concluded Hamric.
About Kantar Media
Kantar Media provides strategic advice and competitive intelligence to the world’s leading brands, publishers, agencies and industry bodies, helping them navigate and succeed in a rapidly evolving media industry. This includes analysis of paid media opportunities; counsel on brand reputation, corporate management and consumer engagement through owned media; and, evaluating consumers’ reactions in earned media. Kantar Media provides clients with a broad range of insights from audience research, competitive intelligence, vital consumer behavior and digital insights, to marketing effectiveness and online influence. Our experts currently work with 22,000 companies tracking 3 million brands in 50 countries. www.KantarMediaNA.com