Presence of discount stores boosts advertising Media&Marketing Emmet Oliver

MEDIA & MARKETING: The increased presence of discount stores such as Aldi and Lidl in the Irish retail market has arguably benefited media organisations as much as consumers. New figures show that advertising spending by the main supermarket chains is set to hit a new high of approximately €48 million for 2004. Emmet Oliver reports.

The main beneficiary appears to be the press sector with retailers traditionally spending three-quarters of their budgets on newspaper advertising.

Advertising agencies that advise clients on what space to take, speak of an "explosion" of spending since the arrival of Aldi and Lidl in the Republic. In response to this continental invasion, Tesco and SuperValu in particular have put sizeable investment behind their brands.

Spending by retailers to the end of September is 22 per cent ahead of the same period last year. The figures are based on the published rate cards of each media organisation. These are collected by the Institute of Advertising Practitioners of Ireland (IAPI).

It should be pointed out, however, that significant discounts are given off rate card prices so the actual amount spent is probably less than €48 million. Still, this should not change the basic trend - that spending is increasing strongly.

While full 2004 figures may be impacted by a late Christmas splurge, we can see from the 2003 figures Tesco was the heaviest spender with a €9.3 million investment, followed by Lidl with a €7.8 million spend, with SuperValu third on a spend of €7.3 million.

Despite their enormous size, Dunnes Stores was in fourth position with a much lower spend of €4.7 million. Similarly, Aldi was not a voracious spender in 2003 with just a €504,000 outlay on advertising, notwithstanding its already strong brand name.

When you look at the 2004 figures to the end of September, these trends have remained broadly unchanged, with Tesco and Lidl both spending almost €8 million each. However, Centra is notably stronger in the latest figures with a rate card spend of more than €2 million.

Analysed over the past few years, the increase in Tesco's spend is very notable.

Universal McCann, one of Dublin's leading media buyers, pointed out that, while retail advertising spending was increasing strongly, it remained at 4 per cent of overall advertising spending in the State.

Not everyone is convinced all the spending is reaping benefits for the retailers. Ms Orlaith Blaney, managing director of McCann Erickson, said many of the multiples were "basically talking to each other in their current advertising".

"The style of advertising across the retailers is basically a plethora of price-based advertisements... Much of the advertising is wallpaper, and many of the advertisers lack any kind of brand differentiation," she said.

"The consecutive advertisements, particularly in the Sunday newspapers, are becoming wallpaper and the retail sector is becoming more and more competitive, with Lidl now neck and neck with Tesco spend, year to date," she added.

'Business Post' editor: Mr Cliff Taylor has been appointed editor of the Sunday Business Post.

He has worked in The Irish Times for the past 17 years, mainly in the business and finance section and is currently economics editor. He is also a managing editor.

An economics graduate of Trinity College Dublin, he previously worked in IDA Ireland.

He succeeds Mr Ted Harding, who resigned from the position recently. The Sunday Business Post is owned by Thomas Crosbie Holdings.

Toy Show figures fall: This year's Late, Late Toy Show achieved a staggering audience of 940,000 viewers among those four years of age and up. Based on those figures, it should easily be one of the most popular programmes of the year.

However, a deeper analysis of the figures by Saor Communications, the new Dublin agency, shows things in another light. It says that, while the show remains a "must view appointment programme", fewer children watched it this year than last year.

"The programme this year was broadcast on November 26th and it attracted 32.5 per cent of children. This was down from the 42.1 per cent of children it attracted on November 28th last year, down a considerable 9.6 per cent.

"So this year's children's audience was 208,650 while last year's was 267,000, down by 58,350," claims its analysis. However, as one RTÉ source quipped yesterday: "It is the adults who do the buying."

Murray appointment: Ms Elaine O'Mahoney has been appointed as an account director at Murray Consultants, the corporate PR firm.

She is a corporate communications specialist, with a particular focus on the energy and telecommunications sectors, where she advises national corporations and utilities.

PR firm turns to IPA: The Institute of Public Administration has begun selling its annual yearbook and it is expected to land on about 10,400 desks. Credit must go to PR agency MRPA, which came up with the idea of booking advertising space in the diary.

Emmet Oliver can be contacted at eoliver@irish-times