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Food and alcohol industry catapult ads sector’s growth

McDonalds Ad Australia 2Food/Alcoholic Retail category is seen to fuel advertising expenditure growth for the final quarter of 2017.

The sector has driven the industry growth at the end of 2016, with a $34.8 million investment in ads during the fourth quarter alone, according to Standard Media Index (SMI).

SMI Australia/NZ managing director Jane Schulze said SMI’s Product Category database has revealed the back end of 2016 was notable for particularly large growth in ad spend from the Food/Alcoholic Retail sectors.

“The Food/Alcoholic Retail category really drove the market’s growth at the back end of 2016 by investing an extra $34.8 million in advertising in the fourth quarter alone. In 2017, we can see that category is already the fastest growing in dollar terms but the level of overall investment is less with the sector increasing ad spend by $29.7 million over the whole eight months of this year,’’ she said.

“That means the category has more than double the level of dollar growth for the whole year thus far to even begin to reach the growth levels seen in the fourth quarter of 2016.”

In the Food/Alcohol Retail category, television has captured ad spend from these marketers, reportedly gaining an extra $14.8 million in ad bookings, while Outdoor’s ad spend from this category grew by $7.7 million and Digital’s spend grew by $7.4 million.

“In the fourth quarter of 2016 the Credit Card category was the second fastest growing after Food/Alcoholic Retailers with its actual ad spend lifting $12.2 million, or by 53.1% from the year-ago quarter with the bulk of that extra investment being directed to the Digital, which was up $6 million, and Television media, up $5.6 million,’’ Schulze said.

“Discount Stores/Online Retailers reported a 38% fall in ad spend in the first eight months of 2016 but it’s clear the marketing budgets were being saved for a strong fourth quarter push as in that later period total ad spend soared 25.8%.’’

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