Ads, FSIs, and Coupons Increase CPG Share of Voice

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. 

Retailer Ad and Promotion Expenditures (Calendar Year 2011; % Change vs. 2010)

CPG Retail Industry

% Change

Retail advertising

1.6%

Retail FSI pages

30.7

Retail coupon events (on dealer websites)

40.4

Source: Kantar Media, March 2012

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.

Retail Advertising and Promotion (2011 vs. 2010)

 

% Change vs. Year Ago

Retailer

Ad Dollars

FSI Pages

Digital Coupon Events

Mass

 

 

 

   Walmart

(27.2%)

677.2%

989.6%

   Target

6.8

(1.9)

37.6

Food

 

 

 

   Kroger

8.9

(23.1)

33.3

   Safeway

(16.1)

15.5

17.2

   Supervalu

(5.0)

(43.8)

3.8

Drug

 

 

 

   Walgreens

8.5

39.0

190.8

   CVS

(8.4)

39.0

(25.1)

Source: Kantar Media, March 2012

“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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