Advertising in supermarkets has long been demonstrably effective, with over 90% of sales today continuing to be generated in brick-and-mortar stores. While you might have expected this percentage to drop during the pandemic, supermarket advertising remains more than worthwhile.
Of course, when a lockdown was in place, you may have rather limited your supermarket visits in an attempt to reduce your risk of COVID-19 infection. Conversely, however, the pandemic might have ultimately enhanced, rather than hampered, the promotional effect of in-store adverts.
How effective was supermarket advertising before the COVID era?
It’s not a straightforward question to answer, but it could be argued that the results of in-store retail marketing have very much depended on how it is used.
That was certainly the case before the pandemic. In an article updated by The Balance Small Business back in May 2019, former Pretzel Crisps marketing VP Perry Abbenante insisted that in-store promotions were essential for fostering success in brands.
He declared that brands “shouldn’t get into the trap of believing they’ll save money by avoiding the investment in retail promotions. You won’t save money… You will lose shelf placement.”
So, how has the pandemic affected supermarket advertising?
From 2018 to 2021, the research firm Kantar studied individuals’ responses to seeing grocery advertising — and realized that people who indeed see adverts are now likelier to make a purchase. Hence, grocery advertising now generates a better return on investment than before.
Kerry Corke, Global Media Director of Kantar’s Worldpanel Division, has speculated that the pandemic-era focus on more time-efficient shopping “led to more instinctive choices”, with consumers influenced by “equity they’ve built up in the longer term as a result of advertising.”
Kantar figures indicate that, while grocery brands before the pandemic amassed $2.80 for every $1 spent on advertising, this return increased to $2.80 after the worldwide COVID-19 outbreak.
What does all of this mean for supermarket advertising today?
The good news is that, as supermarket advertising is evidently at least as effective now as it was back in 2019, many pre-COVID principles of successful in-store advertising still apply.
“In our activation markets, we get our staff on the ground to get placement outside the deli where we are normally merchandised,” Abbenante explained before the COVID crisis. “This tactic helps to attract new people who have never seen your product.”
So, you could consider reserving advertising space positioned where shoppers would see it before they even enter the store. The UK advertising firm Clear Channel enables clients to book supermarket advertising screens located near entrances of select stores around the country.
However, another crucial factor is exactly what your ads say. “It’s all about the price point. Most retailers have accepted the multiple-price-point mantra,” Abbenante also revealed, adding: “A two-for-$5 is more effective than $2.49 each. If you have a two-for deal, you will almost guarantee that every customer will buy the multiple.”
In-store ads can run in tandem with social media ads, too — allowing for a comprehensive and far-reaching, but still pleasantly cohesive, marketing strategy.
