Supermarket chains are outspending the rest of the retail sector when it comes to marketing investment, with German discounters Lidl and Aldi showing the biggest increases in the last quarter.
The latest supermarket ad tracker covering the third quarter of the year, from Nielsen Media and Checkout magazine, shows that while the likes of SuperValu and Tesco dropped spend during the period; the likes of Dunnes Stores, Eurospar, Aldi, and Lidl increased advertising outlay.
While exact expenditure has not been quoted, Lidl increased its marketing spend by 59.5% in the last quarter, with Aldi upping its investment by 66.2%.
Most recent market share data, published in October, showed that while Tesco has extended its position as Ireland’s most popular supermarket chain, the biggest market share gainers have been Lidl and Aldi.
Lidl grew its Irish market share by 6.5% to 6.6%, during the third quarter, while Aldi was the biggest mover, with a near 30% year-on- year gain to 6%.
“Lidl and Aldi continue to hit new heights in terms of market share, driven by increased focus on their support for local producers as well as their price credentials. Buying Irish has become a key part of their marketing message, which they have put significant investment behind as the year has progressed,” noted Checkout editor, Stephen Wynne-Jones.
Traditional third quarter ad spend by the major supermarkets fell, year-on- year, by 0.5% to €11.7m.
While press remained the dominant medium at 65% of the spend, television’s €2.5m (21% of total spend) share, was a near 50% rise on the same period last year, chiefly driven by the discounters’ investment.
© Irish Examiner Ltd. All rights reserved