The latest data from Nielsen’s Ad Intel shows a 14 per cent jump in ad spend by power companies as they look to stave off consumer concerns about rising prices.
Recent Nielsen Consumer and Media View (CMV) data shows 82 per cent of Australians are “concerned” about power prices, with more than 45 per cent “very concerned”.
Additionally, more than 13 per cent of Australians have switched energy providers in the last year, with a further 12 per cent planning to do the same over the next 12 months.
Of those planning to switch, just over 41 per cent say their main reason is cost, followed by service reliability (11.6 per cent), ease of bill payment (8.5 per cent), energy-saving ideas from the provider (6.8 per cent), followed by staff courtesy and helpfulness (4.3 per cent). Support of the local community, green programs, ease of switching addresses, and website usability made up the small remainder.
Nielsen Ad Intel data also shows that to combat this growing lack of brand loyalty in the sector, energy providers spent more than $152 million on advertising between June 2023 and May 2024 — a 14 per cent year-on-year increase.
Topping the list of ad investment in the sector were
- AGL
- Origin Energy
- Alinta Energy
- Energy Australia
- Engie.
Over the last 12 months, almost 14 per cent of AGL customers switched to Origin Energy, with a further 8.7 per cent moving over to Energy Australia.
Overall, Origin Endergy was the most frequent supplier customers switched to, accounting for nearly 23 per cent of all defections, followed by Red Energy, and Energy Australia.
At a state and territory level, Victorians are the most unhappy with their energy providers, followed by WA, NT, Queensland, NSW, SA, then Tasmania, while Canberans were mostly unconcerned.
Nielsen Ad Intel’s Pacific commercial lead, Rose Lopreiato, said: “The increase in ad spend for the utilities sector reflects the growing need to attract and retain the burgeoning number of ‘energy nomads’ who often aren’t locked into contracts and take a better deal as soon as they see one. That makes it more crucial than ever to know in near-realtime what’s on offer from competitors, as well as where and how much they’re spending – the kind of data Nielsen Ad Intel delivers quickly and efficiently.”
Glenn Channell, Nielsen’s Pacific head of advanced analytics added: “While our data shows the obvious demographic impact cost of living is having on Australian energy consumers, it’s increasingly identifying new groups of consumers – for instance, we’re seeing a correlation between attitudes to power prices and what car consumer’s are likely to drive, the health insurance policy they plan to take out, and even how that will impact the purchase of their next cruise – and it’s not what you’d think.
“The growing lack of brand loyalty among Australians makes the need to leverage data, like Nielsen CMV, more crucial than ever. It’s increasingly the difference between losing customers and making your existing customers more valuable, while gaining new ones.”
