Retail Aldi and Lidl account for around 47% of the total advertising spend by Irish retailers according to the latest ‘Supermarket Ad Tracker’ report which is produced by Checkout magazine by research company Nielsen.
The report, which covers the second quarter of this year 2014, found that Lidl accounts for 24.5% of supermarket ad spend (down 0.5% on the same quarter last year), while Aldi accounts for 22.6% of the market (up 7.6%).
By contrast, industry leader Tesco accounts for 17.3% of supermarket ad spend (up 3.2 pts), while SuperValu accounts for 20.5% (down 0.3%). Dunnes Stores, meanwhile, accounts for just 9.6% of the grocery advertising market.
The study also found that Aldi increased its advertising spend by 95.8% in the period, compared to the same period the previous year, an increase well ahead of that of its competitors (Tesco +59.7%, SuperValu +27.8%, Lidl +27.6%, Dunnes +8.5).
“While Aldi and Lidl’s market share is considerably lower than that of their mainstream competitors, both discounters continue to ‘shout louder’ than the rest of the industry when it comes to marketing presence,” said Stephen Wynne-Jones, editor, Checkout
In terms of the media channels used most by retailers, press accounts for 52% of the market, with TV on 38%, radio accounting for 8% and outdoor accounting for 3%.
As in previous quarters, supermarket ad spend (at +30%) is performing ahead of the rest of the advertising market, with the total all media market seeing a decline of 1.2%, and FMCG advertising spend seeing a decline of 3.3%. The period in question included the busy Easter, Father’s Day and May Bank Holiday shopping periods.
“Supermarket & Grocery Chains is the Number One spending category in Nielsen All Media Advertising spend in 2014, with the big multiples and discounters in particular showing positive trends of +30% year on year for Q2 2014, driven by Aldi and Lidl,” said Karen Mooney, Nielsen Ireland.
“In fact, Nielsen All Media overall top 10 SpendersQ2 2014, shows the big four retailers in the Top 10 Advertisers (Lidl, Aldi, Supervalu and Tesco). With overall first half growth of +24% year on year for the big supermarkets, it suggests these big retailer advertisers may remain key spenders into the second half of the year.”