Australia’s Retail Sector Divided On Digital Ad Spend: SMI Data

Young Beautiful Woman Sitting On Couch Shopping Online
SHARE
THIS



Australia’s retail sector continues to invest in digital media as it faces an increasingly disruptive market, but there’s little agreement on the preferred digital media channel, the latest Standard Media Index (SMI) advertising payment data has revealed.

SMI’s data for the first quarter of 2017 shows the key retail sectors of department stores, discount stores and apparel/luxury fashion/shoes have all continued to grow the amount spent on digital advertising. However, the amounts spent and where it was spent differed markedly.

Although the apparel/luxury fashion category spends the least on digital media, it is growing the fastest of the three sectors, with its digital ad spend jumping 73.6 per cent in the quarter.

And interestingly, apparel retailers are the only category spending more on quality content sites (mostly news-based websites), with both department and discount stores reducing their ad spend to this area in favour of the exchanges (or programmatic) market where advertising purchases are automated.

The growth in programmatic advertising was most pronounced within the department store category in this quarter, with that ad spend quadrupling, while for discount stores, the highest growth in ad spend was among ‘pure play’ (mobile groups which specialise in in-app mobile advertising).

SMI AU/NZ managing director Jane Schulze said the data again highlighted distinct differences in the digital media channels chosen by key retail sectors.

“Within SMI’s overall retail category data it’s clear there are distinct retail ecosystems, each with their preferred method of approaching digital media,’’ she said.

“For example, department stores spend the greatest proportion of their digital media budget on social sites, discount stores spend the greatest proportion on search marketing, while apparel retailers prefer quality content sites.

“The only commonality in ad spend trends we’ve seen in the most recent data is the reducing in spend onto pure play video sites, which may reflect some of the recent debate around advertising on brand-safe websites.’’

Ms Schulze said the lack of consistency in approach to the digital market was interesting given the number of retailers in financial difficulty as new overseas entrants ramp up competition in the sector.

“Clearly the various retail sectors are continuing to test what works best, as we can see that while apparel retailers are now spending the largest part of their digital advertising budgets on content sites, in the fourth quarter of 2016 most of their digital ad spend was directed to social sites,” she said.

Note: Department store data includes all digital ad spend for retailers such as David Jones, Myer and Harris Scarfe. It’s discount stores data includes retailers such as Big W and Kmart, while its Apparel data includes ad spend for retailers such as Country Road, Witchery and Marcs.

Latest News

Pooled Energy Appoints Magnum & Co And The Wired Agency
  • Advertising
  • Marketing

Pooled Energy Appoints Magnum & Co And The Wired Agency

Swimming pool electricity retailer Pooled Energy has appointed Magnum & Co and sister agency The Wired Agency to its roster, following a competitive pitch. Magnum & Co will handle Pooled Energy’s social media and PR, while The Wired Agency has been appointed to manage the company’s search and display advertising. Both agencies will collaborate with […]

Masculinity Roasted In Clever New Ad
  • Advertising
  • Campaigns

Masculinity Roasted In Clever New Ad

Think masculinity means drinking a case without chundering? Well, rediscover it (& possibly yourself) with this top ad.

by B&T Magazine

B&T Magazine
WPP AUNZ Partners With Career Trackers Indigenous Internship Program
  • Advertising

WPP AUNZ Partners With Career Trackers Indigenous Internship Program

Advertising and marketing network WPP AUNZ has joined the Career Trackers Indigenous Internship Program as part of its commitment to a diverse workforce, and the creation of opportunities that inspire excellence. As part of the program, WPP AUNZ has welcomed its first three interns: Abi-Leigh Dillon (WPP AUNZ), Amy Mccutcheon (MediaCom) and Jacinta Evans (Ogilvy), […]

Taboo Goes On A Hiring Spree
  • Advertising

Taboo Goes On A Hiring Spree

Taboo has gone a hiring spree. And when it comes to sprees, that's far better than a shooting one or a farting one.

M&C Saatchi Group’s 1440 Shuts Up Shop
  • Marketing

M&C Saatchi Group’s 1440 Shuts Up Shop

Sadly, M&C Saatchi's 1440 is no more. And chances of it being reborn as 1550 not looking much chop either.

by B&T Magazine

B&T Magazine
Luke Kelly Becomes A Partner At HBT
  • Advertising
  • Marketing
  • Technology

Luke Kelly Becomes A Partner At HBT

B&T's not sure what's with that twirly thing in the press photo, suffice to say a vortex to an alternate dimension?

Women In Media Profile: Alison Michalk
  • Media

Women In Media Profile: Alison Michalk

If B&T's Women in Media profiles were an animal they would be a gazelle or lioness, or even a lioness eating a gazelle.

by B&T Magazine

B&T Magazine
Grant Broadcasters Makes Several Changes To Senior Executive Team
  • Media

Grant Broadcasters Makes Several Changes To Senior Executive Team

Independent media company Grant Broadcasters has announced a number of changes to its executive ranks. Grant Cameron will move up to become non-executive chairman for the company, and Alison Cameron (pictured above) – currently the chief operating officer – will assume the CEO role. Dugald Cameron remains responsible for the family’s investment portfolio and is […]

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities
  • Advertising
  • Media

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities

Australian retail out-of-home (OOH) business Shopper Media Group (SMG) has announced a partnership with AI-powered wireless networks provider Mist. The partnership will see SMG offer new WiFi, analytics and location-based services across the company’s portfolio of Australian shopping centres. Mist currently provides WiFi and location services using virtual Bluetooth LE technology to businesses across all […]

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account
  • Advertising
  • Media

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account

Travel organisation Cruiseco has announced the appointment of Sydney independent agency This is Flow (TIF) to handle its $5 million media account. This is the first time Cruiseco has appointed an agency, having managed its communications internally. Cruiseco is the largest and broadest distributor of cruise products in the Southern Hemisphere. With a membership base […]

Women In Media Profile: Naomi Shepherd
  • Media

Women In Media Profile: Naomi Shepherd

Need a Monday morning pick-me-up? You could stand naked next to the office fridge or read these inspiring words.

by B&T Magazine

B&T Magazine
APN Outdoor Takes Off With Queenstown Airport Contract
  • Advertising
  • Media

APN Outdoor Takes Off With Queenstown Airport Contract

Out-of-home media business APN Outdoor has won the tender for New Zealand’s Queenstown Airport. As part of the new agreement, APN Outdoor has flagged extensive development plans for Queenstown Airport’s advertising assets. The new contract adds Queenstown Airport to APN Outdoor’s existing portfolio of Auckland and Christchurch Airports. The media company will hire a South […]