Can a Supermarket Do Without a Weekly Ad Circular?
A recent RetailWire discussion focuses on a reader's dilemma which is near and dear to our hearts. It boils down to the question of whether a supermarket can successfully replace their
weekly newspaper ad with an in-store/website flyer. Would they come out ahead if they used the
money they would save in advertising for other purposes?
The basic problem is that there hasn't been enough research done regarding the issue of how supermarket circulars and the deals they advertise affect consumers' shopping decisions. How about in-store flyers? Radio? Would better results come from investing that money in entirely new directions such as product pricing or new services?
Supermarket advertising is typically "non-inspirational", although there are a few exceptions (Trader Joe's and Whole Foods are mentioned in the discussion itself). Why don't supermarkets try to punch it up a little by using some of the creativity and design flair that is usually focused solely on brand-oriented ads.
The discussion's poll question was "Are typical supermarket circulars worth the expense and effort?" 42% thought that circulars are worth the expense if they're done properly, 26% though that it depends on the retailers and 25% thought that they are never worth it. Personally, I'm with the 42% on this question, where "circulars done properly" means more creative circulars, tighter production processes, and the use of additional channels (in-store, online, etc.)
While we're on the subject, here's a BrandWeek article that discusses Free Standing Inserts (FSIs) and the fact that marketers more than doubled (!!!) the amount of dollars spent on FSI coupons last year, as the practice spread from CPG manufacturers and retailers to financial services and restaurant chains. For example, Discover, McDonald’s and Applebee’s went from spending nothing on FSIs in 2006 to investing millions on them in 2007.
The reason for this shift - mostly economic factors. Consumers become more interested in coupons when they're cash-strapped, while marketers do it in order to conserve their budgets, as they're an inexpensive way to reach budget-conscious consumers (FSIs’ average CPM rate is roughly $6 to $8.) The Web has also debuted as a inexpensive FSI distribution option, with the main players offering printable coupons on their sites.
Finally, RetailWire and MediaPost articles about the latest Vertis report, which reports that 47% of US adults said that inserts/circulars best capture their attention, while 43% cited television ads and 38% cited newspaper display ads (a 9% increase for inserts, a 10% decrease for TV ads and a 7% decrease for newspaper ads since their 2003 survey.) In addition, 27% said that inserts/circulars are the ad vehicles most likely to directly impact buying decisions, versus 19% for TV ads and 12% for newspaper display ads. By the way, these results also hold true for Canada, as evidenced by the survey covered by both Marketing Charts and eMarketer.
Posted by Universal Ad
The basic problem is that there hasn't been enough research done regarding the issue of how supermarket circulars and the deals they advertise affect consumers' shopping decisions. How about in-store flyers? Radio? Would better results come from investing that money in entirely new directions such as product pricing or new services?
Supermarket advertising is typically "non-inspirational", although there are a few exceptions (Trader Joe's and Whole Foods are mentioned in the discussion itself). Why don't supermarkets try to punch it up a little by using some of the creativity and design flair that is usually focused solely on brand-oriented ads.
The discussion's poll question was "Are typical supermarket circulars worth the expense and effort?" 42% thought that circulars are worth the expense if they're done properly, 26% though that it depends on the retailers and 25% thought that they are never worth it. Personally, I'm with the 42% on this question, where "circulars done properly" means more creative circulars, tighter production processes, and the use of additional channels (in-store, online, etc.)
While we're on the subject, here's a BrandWeek article that discusses Free Standing Inserts (FSIs) and the fact that marketers more than doubled (!!!) the amount of dollars spent on FSI coupons last year, as the practice spread from CPG manufacturers and retailers to financial services and restaurant chains. For example, Discover, McDonald’s and Applebee’s went from spending nothing on FSIs in 2006 to investing millions on them in 2007.
The reason for this shift - mostly economic factors. Consumers become more interested in coupons when they're cash-strapped, while marketers do it in order to conserve their budgets, as they're an inexpensive way to reach budget-conscious consumers (FSIs’ average CPM rate is roughly $6 to $8.) The Web has also debuted as a inexpensive FSI distribution option, with the main players offering printable coupons on their sites.
Finally, RetailWire and MediaPost articles about the latest Vertis report, which reports that 47% of US adults said that inserts/circulars best capture their attention, while 43% cited television ads and 38% cited newspaper display ads (a 9% increase for inserts, a 10% decrease for TV ads and a 7% decrease for newspaper ads since their 2003 survey.) In addition, 27% said that inserts/circulars are the ad vehicles most likely to directly impact buying decisions, versus 19% for TV ads and 12% for newspaper display ads. By the way, these results also hold true for Canada, as evidenced by the survey covered by both Marketing Charts and eMarketer.
Posted by Universal Ad
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