Posters are being neglected by multiples says Siân Harrington
There is something rather delicious about seeing a 96-sheet poster advertising Tesco located just outside an Asda store, or vice versa. However, research exclusive to The Grocer shows that, in general, grocery chains are failing to capitalise on their sizeable access to outdoor advertising sites.
Data from Foresite, a new research and planning consultancy set up by WPP-owned specialist Portland Outdoor, shows that 92% of all outdoor sheetage lies within an immediate influence zone around the major supermarket chains. It defines this zone as within 3.5 miles of a store, a distance determined by The Future Foundation as the average people are prepared to travel to do their grocery shopping.
Yet these chains only spend about 7% of their advertising budgets on outdoor media, less than all other sectors. This is despite the cost per thousand comparing favourably to other media, approximately £1.80 compared to £2.20 for radio and £7.50 for TV. “Supermarkets and posters are generally urban phenomena so are a good mix,” says Portland research and marketing director Andrew Atherton. “However, outdoor does not have its fair share of spend.”
Take Asda. It has the lowest percentage spend on the outdoor medium, at 0.8% in 2003 and 0.4% in 2004 to date. But 99% of its stores are close to 48-sheet poster sites.
Atherton argues that consumers are susceptible to advertising messages when they are in shopping mode and enter this mode when en route to a store. But when supermarkets use posters, it tends to be for brand building rather than as a call to action. “Outdoor has the effect of point of purchase advertising away from the store.”
So why are supermarkets missing this opportunity, especially when research from the Advertising Standards Authority shows the public has a positive attitude towards outdoor? Lack of flexibility is one reason but today weekly campaigns are becoming more regular, says Atherton, making the outdoor arena more suitable for rapidly changing, promotions-based advertising.
One company has been quicker than its rivals to exploit these benefits. Tesco’s expenditure on outdoor is well ahead of the competition, at 14.7% of its ad spend last year [see MMS figures below].
“We use outdoor advertising to satisfy certain objectives and we find it effective,” says a Tesco spokesman.
“Most recently we have used it to talk about our low priced products.”
Could this explain why Sainsbury has more than doubled its investment in this medium so far this year?
Supermarkets’ media expenditure
There is something rather delicious about seeing a 96-sheet poster advertising Tesco located just outside an Asda store, or vice versa. However, research exclusive to The Grocer shows that, in general, grocery chains are failing to capitalise on their sizeable access to outdoor advertising sites.
Data from Foresite, a new research and planning consultancy set up by WPP-owned specialist Portland Outdoor, shows that 92% of all outdoor sheetage lies within an immediate influence zone around the major supermarket chains. It defines this zone as within 3.5 miles of a store, a distance determined by The Future Foundation as the average people are prepared to travel to do their grocery shopping.
Yet these chains only spend about 7% of their advertising budgets on outdoor media, less than all other sectors. This is despite the cost per thousand comparing favourably to other media, approximately £1.80 compared to £2.20 for radio and £7.50 for TV. “Supermarkets and posters are generally urban phenomena so are a good mix,” says Portland research and marketing director Andrew Atherton. “However, outdoor does not have its fair share of spend.”
Take Asda. It has the lowest percentage spend on the outdoor medium, at 0.8% in 2003 and 0.4% in 2004 to date. But 99% of its stores are close to 48-sheet poster sites.
Atherton argues that consumers are susceptible to advertising messages when they are in shopping mode and enter this mode when en route to a store. But when supermarkets use posters, it tends to be for brand building rather than as a call to action. “Outdoor has the effect of point of purchase advertising away from the store.”
So why are supermarkets missing this opportunity, especially when research from the Advertising Standards Authority shows the public has a positive attitude towards outdoor? Lack of flexibility is one reason but today weekly campaigns are becoming more regular, says Atherton, making the outdoor arena more suitable for rapidly changing, promotions-based advertising.
One company has been quicker than its rivals to exploit these benefits. Tesco’s expenditure on outdoor is well ahead of the competition, at 14.7% of its ad spend last year [see MMS figures below].
“We use outdoor advertising to satisfy certain objectives and we find it effective,” says a Tesco spokesman.
“Most recently we have used it to talk about our low priced products.”
Could this explain why Sainsbury has more than doubled its investment in this medium so far this year?
Supermarkets’ media expenditure
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