SMI Data: Aussie Food Marketers Continue To Reduce Ad Spend

Various products in a supermarket
SHARE
THIS


What best describes you?

Australia’s food marketers are continuing to dramatically reduce their advertising spend in 2017, after strong growth in 2016 saw the sector emerge as the country’s fourth largest advertising category, according to the latest Standard Media Index (SMI) data.

In the 2016 calendar year, the food/produce/dairy category was one of the market’s growth stories, with ad spend lifting 1.5 per cent to $392.3 million, propelling the food category into fourth position among SMI’s 40 product categories.

But the momentum has stalled in 2017, with SMI’s agency payment data for the first quarter showing total food/produce/dairy ad spend falling 6.3 per cent from the same quarter a year ago to $83.2 million.

However, most of the decline is due to reduced bookings onto TV and outdoor, and in contrast food marketers’ spend onto digital media grew 5.4 per cent for the quarter.

And for the first time this month, SMI has launched ad spend for five new sub categories that provide the first real detail on the parts of this market responsible for the growth.

Most of this growth was due to higher spend from the milk/dairy/produce/baked goods sub-category, which grew ad spend by more than 75 per cent in the quarter, taking its share of total category spend to 26.8 per cent from 16.0 per cent in the same quarter last year.

In contrast, the largest sector of this market – confectionery/snacks/dessert items – reduced its total expenditure by 7.9 per cent.

The SMI data also showed that in this quarter the confectionery/snacks/dessert items sector delivered strong growth to social sites (+31.8 per cent), but reduced its spend onto programmatic buying (-14.3 per cent) and content sites (-51.9 per cent).

Furthermore, the growth in the milk/dairy/produce/baked goods category was predominantly in content sites (+79 per cent quarter-on-quarter) and social sites (+168 per cent).

SMI managing director for Australia and New Zealand, Jane Schulze, said the initial April data shows that after a strong first quarter, food marketers are now also reducing spend onto digital media in April, with bookings so far back 29.2 per cent.

“This month, there continues to be huge variation in the levels of digital spending within the key food/produce/dairy sectors,’’ she said.

“For example, the confectionery/snacks/dessert items market has so far reduced digital spending 54 per cent this month, while the second largest sub-category of milk/dairy/produce/baked goods grew digital spend by 31 per cent, and in the process grew its share of the category’s total digital spend this month from 14 per cent last April to 25.8 per cent.’’

The SMI data also showed that in the first quarter of 2017, the food/produce/dairy category grew online Video format spend by 14.6 per cent, mostly driven by higher video spending among confectionery/snacks/dessert items.

However, in the same quarter, the auto brand category grew video format ad spend a far higher 69.5 per cent to remain the largest category spending on online video this quarter.

Please login with linkedin to comment

Latest News

OMD Announces New MD For Melbourne
  • Media

OMD Announces New MD For Melbourne

OMD unveils new Melbourne MD, and it certainly wasn't among any of B&T's picks. Not that we were picking, mind you.

Sydney Festival Chooses Brightcove To Enhance Online Video Content
  • Media

Sydney Festival Chooses Brightcove To Enhance Online Video Content

Video cloud service Brightcove has announced that Sydney Festival has selected the platform to improve its user experience through online video content. Brightcove will do so by removing third-party branding and pre-roll ads, as well as adding autoplay functionality, ahead of the event in January. Leveraging the Brightcove video platform to host and publish video […]

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

Remember the old Palmolive soap ad that asked, "Don't wait to be told"? This is sort of similar, albeit sans any suds.

Opinion

by Peter Harris

Peter Harris
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’
  • Advertising
  • Media

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’

Outdoor media company QMS Media has strengthened its digital outdoor presence in Victoria, unveiling an iconic digital billboard in the heart of Melbourne’s famous sporting precinct. The launch of ‘The G’ sees QMS’ landmark digital portfolio ‘bookending’ arguably one of the most iconic and in-demand digital outdoor locations in Australia – Richmond Station Bridge – […]

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante
  • Advertising
  • Campaigns
  • Marketing

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante

As part of the HSBC World Rugby Sevens Series, the Sydney 7s event returns in January complete with a new brand identity, creative strategy and media campaign. With the 2017 Sydney 7s a sell-out event, the challenge for 2018 was to carry that momentum into the third year, defining Sydney’s place as the new ‘go-to’ […]

Bound Round Launches Family Travel Publication for Aussies
  • Media

Bound Round Launches Family Travel Publication for Aussies

Family travel platform Bound Round has announced the launch of its first e-magazine to Australian consumers. Travel Bound is a family-focused, digital quarterly publication available on all Virgin Australia flights through the carrier’s in-flight entertainment system, and is also available for consumer download via the Bound Round website. Bound Round founder and CEO Janeece Keller […]

SBS Unveils New Look, New App For SBS News
  • Media

SBS Unveils New Look, New App For SBS News

Do you like say "I only watch SBS" in an attempt to sound smarter than you are? Well, why not pretend to read this too?

by B&T Magazine

B&T Magazine
Ex-Samsung CMO Joins Amazon Australia As Marketing Director
  • Marketing

Ex-Samsung CMO Joins Amazon Australia As Marketing Director

Amazon Australia has appointed former Samsung Electronics chief marketing officer (CMO) Arno Lenior to lead its marketing division. Lenior worked as Samsung’s CMO for more than three years before departing in 2015. According to his LinkedIn profile, he has also held CEO roles at VR company Virtical and brand consultancy Blue Ocean Brands, and joined […]

by B&T Magazine

B&T Magazine
News Corp Names Its Car Of The Year
  • Marketing

News Corp Names Its Car Of The Year

News announces its annual Car Of The Year and it's not what you'd expect. Well, we certainly didn't expect it anyway.

Aussie Tennis Open & Country Road Announce New Partnership
  • Marketing

Aussie Tennis Open & Country Road Announce New Partnership

The Australian Open has partnered with iconic Australian clothing and lifestyle brand Country Road to supply the uniforms for next year’s tournament. Confirmed today as the official fashion lifestyle Partner of Australian Open 2018, one of Australia’s most loved brands will be worn by thousands of tournament staff at Melbourne Park in January. On-court officials including the chair and […]

Andrew O’Keefe Quits His Weekend Sunrise Duties
  • Media

Andrew O’Keefe Quits His Weekend Sunrise Duties

After 12 years with Weekend Sunrise, Andrew O’Keefe has decided to step away from his hosting and reporting duties. O’Keefe will continue his full-time role as host of Seven’s quiz show The Chase Australia, as well as focus on other projects with the Network. “The ideal job is doing work you love with people you love,” O’Keefe […]

Study: Brand Loyalty Hinges On Customer Support Experiences
  • Marketing

Study: Brand Loyalty Hinges On Customer Support Experiences

Fast and effective support will be a competitive differentiator for companies looking to win over digitally transformed customers and employees, new research has revealed. According to a study by IDC and LogMeIn titled Support Services as a Competitive Differentiator, nearly 67 per cent of consumers said that customer satisfaction was more important than price when […]

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform
  • Advertising
  • Media

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform

The Outdoor Media Association (OMA) has announced the appointment of Red Ant Design to build the out-oh-home (OOH) industry’s first automated proposal platform (APP). After an extensive global search and industry consultation, the decision to build the system in-house with a local Australian company was made. The APP will be built in an agile process, […]

Nick Ballard, Managing Director
Australia & New Zealand, BlisMedia
  • Marketing
  • Technology

Blis Unveils New Consumer Behaviour Analytics Tool For Maketers

Location data technology company Blis has launched an analytics tool that allows marketers to analyse consumer behaviour – from audience profiling, to exposure, to attribution – by capturing and activating mobile movement data. Smart Trends offers robust in-store consumer behavioural insights and in-store comparison of multiple location types and brands, allowing marketers to break down demographic, […]