Supermarket War Triggers Record Advertising Spend

Female store cell phone close-up

The battle of the supermarkets has delivered a huge revenue boost for the advertising industry, according to the Standard Media Index figures.

B&T Magazine
Posted by B&T Magazine

This is the battle between ALDI, Woolworths, Coles and IGA over the market share in the $90 billion grocery sector. The battle has resulted in rise of 5.7 per cent (AUD$5.06 million) in spending by food and alcohol retailers through media agencies in the September quarter to a record $94.6 million – beating the previous record of $93.5 million in 2012.

Spending at metropolitan TV networks rose 11.6 per cent to $37.1 million, digital advertising rose 26 per cent to $16 million and spending on radio advertising jumped 29 per cent to $11.3 million, offsetting a continued double-digit slide in newspaper advertising.

Last week, Woolworths announced it was changing its “Cheap, Cheap” logo to “Always At Woolworths”.Woolies plans to invest more than $500 million in reducing grocery prices to “neutralise” Coles and “contain” Aldi. The retailer has invested more than $200 million into reducing prices this year and claims its prices are now as cheap, if not slightly cheaper, than a similar basket of groceries at Coles.

ALDI recently launched a campaign with BMF to emphasis the variety of products available ALDI:

Coles Flybuy has been named the top loyalty program in Australia by loyalty consultancy Directivity and retention agency Citrus.