Supermarket wars blamed for huge drop in FMCG ad spend

February 3, 2015 1:32

New breakdowns in media agency client spend data for the fast moving consumer goods (FMCG) category show advertising in the area of food, produce and dairy is down almost 10 per cent year on year, Mumbrella can reveal.

Experts say the shift in ad dollars is likely to be driven by a renewed push by Coles and Woolworths to have their suppliers spend more on instore advertising, with much of the money coming out of traditional TV budgets.

Standard Media Index (SMI) has for the first time broken down agency spend in the area of FMCG, its third largest category, illustrating why the wider category recorded a decline of 7.6 per cent to $538.5m in 2014.

The new data suggests the supermarket war has taken a bite out of the ad market with the sub category of food/produce/dairy 9.9 per cent down from $423.2m in 2013 to $381.5m in 2014. Household supplies remaining relatively stable at around $184m.

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Nic Christensen

Nic Christensen worked for Mumbrella from 2013 to 2016, in roles including deputy editor and media & technology editor. He is former media writer for The Australian and has also worked as a reporter for The Daily Telegraph and senior producer for Radio 2GB.

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1 COMMENTS

Anonymous 3 Feb 15

Has the penny just dropped adland? The insatiable appetite for margin of the duopoly has been reducing everyone’s A&P spend for years. These 2 have been responsible for many a job loss yet the media fete the likes of McClod & Girkin like they are retail masterminds…..

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