The UK’s top supermarkets could be set to benefit from a growing source of income. The marketing director of Nestle Rowntree says the spiralling cost of TV advertising is forcing the nation’s biggest food producers to re-examine their marketing strategies.
Writing in the Financial Times newspaper, Andrew Harrison said that brand owners are moving away from expensive TV commercials and seeking new, cheaper advertising alternatives.
He went on to warn that supermarkets are rapidly replacing the nation’s once-dominant TV advertising channel, ITV, as the new mass market medium.
The price of advertising on television has suffered from hyper-inflation. With costs rocketing, even big spenders such as Nestle, which spends over GBP35 million on advertising in the UK each year, are seeking cheaper ways to get their marketing message across. Compounding the problem is the fact that while 15 years ago ITV was the only national commercial channel, now there are over 200.
Meanwhile, some 70% of consumer food spending is channeled through the nation’s biggest four supermarkets, making supermarket displays a tempting choice for companies such as Nestle.
Mr Harrison was clear in his analysis of the trend, pointing the finger squarely at the TV industry for failing to maintain television as an exciting force for a new generation of marketers.