• by Jack Loechner , Staff Writer @mp_research, April 12, 2012

Kantar Media reports that retailer advertising expenditures increased 1.6% and retailer participation in Free Standing Insert (FSI) coupon promotion pages increased 30.7% in CY 2011 versus CY 2010.  Additionally, digital coupon events increased 40.4% during this period across the leading retailer websites monitored by Kantar Media. 

Dan Kitrell, Vice President of Marx Account Solutions at Kantar Media, provided insights behind the data and analysis of the study. He is quoted frequently in the report:

Important differences in advertising and promotion tactics were observed among leading retailers, though retailers and manufacturers are working together to implement integrated advertising and promotion programs to reach shoppers in the home where they are creating shopping lists and planning shopping trips. 

While manufacturers must understand the strategic role of their categories at each retailer, together with how their brands both complement and compete with other brands and private labels, Kitrell pointed out. Manufacturers gain a competitive advantage by aligning their promotion timing with weeks in which retailers have greater advertising and promotion activity.  Higher levels of weekly retailer advertising and promotion translate into their ‘share of voice’ to drive more trips.

Significant shifts in advertising and promotion activity were observed among leading retailers across the Mass, Food, Drug, and other retail distribution channels.  For example, Walmart decreased total advertising expenditures 27.2% across the 18 media monitored by Kantar Media, while increasing their participation in FSI promotion pages by 677.2%, and having 989.6% more digital coupon events distributed on Walmart.com during CY 2011 versus CY 2010.

“Some manufacturers are leveraging the strength of their brand portfolios as part of corporate scale themed events that ‘stack’ retailer-aligned advertising and promotion support to break through the clutter with shoppers, improve the return on promotion programs with retailers, and convert category shoppers into brand buyers in the store during these peak weeks,” concluded Kitrell.

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