Retail Advertising - UK - September 2003
Table of Contents

Introduction and Abbreviations

Definitions

NS data

Nielsen Media Research

Consumer research

Socio-economic group
Lifestage and Special Groups

ACORN

Trade research

Abbreviations

Executive Summary

Retailers growing in importance as clients to the advertising industry

Retail sales growing faster than retailer adspend

Adspend growth erratic in review period

Opticians and furniture retailers have the highest A:S ratios

Furniture retailers the highest-spending category

Press losing ground to TV and outdoor

Retail advertisers spend differently

Direct mail a growing factor

Big spenders keep on spending

Factors affecting consumer awareness of and exposure to advertising

TV has universal reach…

…increased numbers of multichannel households leading to fragmentation

Press advertising under pressure because readership of national newspapers in decline…

…and retailers’ house magazines have wider reach than consumer titles

Radio, cinema and outdoor each have claims for greater share of spend

Consumers indicate possibility of growing cynicism about advertising

Consumer recall of food retailers’ advertising

Consumer recall of non-food retailers’ advertising

Consumer attitudes towards advertising

Issues in retail advertising

Trends in retailer adspend likely to be static but outlook very mixed

Effectiveness of spend is critical in choice of media

Issues in direct mail and use of loyalty card information

Take-up of new media

Issues in style and content of advertising

Most-admired retailer campaigns

Least-admired campaigns

Future and conclusions

Consumer pull or retailer push?

In adversity: advertise

But high adspend can lead to commercial success

Effectiveness of advertising is of paramount importance

Advertising a powerful influence on consumers…

…but there is a danger of contributing to cynicism of advertising

Are award-winning campaigns effective?

Is targeting as effective as it could be?

Below-the-line communications increasing in importance…

…likely to be adverse impact on above-the-line

Prospects for 2003

Advertising Expenditure Trends

Telecommunications and computing

Retail advertising expenditure and retail sales

Retail sector analyses – summary trends

Use of media

Direct mail

Top 25 retail advertisers

Top ten retail creative agencies

Conclusions and implications

Furniture and Furnishings Retailers

Trends in advertising spend

Trends in sector sales

Advertising to sales ratio

Use of media

Direct mail

Share of expenditure by retailer

DFS

MFI

Courts

Other leading advertisers

Conclusions and implications

Supermarkets and Grocers

Trends in advertising expenditure

Trends in sector sales

Advertising to sales ratio

Use of media

Direct mail

Share of expenditure by retailer

Sainsbury’s

Tesco

Asda

Iceland

Other leading advertisers

Conclusions and implications

Department and Variety Stores

Trends in advertising spend

Trends in sector sales

Advertising to sales ratio

Use of media

Direct mail

Share of expenditure by retailer

Woolworths

Marks & Spencer

Argos

Debenhams

Co-op

House of Fraser

Other leading advertisers

Conclusions and implications

DIY Stores

Trends in advertising spend

Trends in sector sales

Advertising to sales ratio

Use of media

Share of expenditure by retailer

B&Q

Homebase

Focus DIY

Magnet

Wickes

Other leading advertisers

Conclusions and implications

Electrical Goods Retailers

Trends in advertising spend

Trends in sector sales

Advertising to sales ratio

Use of media

Share of expenditure by retailer

Currys

Comet

Dixons

Powerhouse

Other leading advertisers

Conclusions and implications

Chemists and Drugstores

Trends in advertising spend

Trends in sector sales

Advertising to sales ratio

Use of media

Share of expenditure by retailer

Boots

Other leading advertisers

Conclusions and implications

Clothing and Footwear Retailers

Trends in advertising spend

Trends in sector sales

Advertising to sales ratio

Use of media

Share of expenditure by retailer

Gap

Hennes

French Connection

Other leading advertisers

Conclusions and implications

Opticians

Trends in advertising spend

Trends in sector sales

Advertising to sales ratio

Use of media

Direct mail

Share of expenditure by retailer

Specsavers

Vision Express

Boots Opticians

Other leading advertisers

Conclusions and implications

Music and Video Stores

Trends in advertising spend

Trends in sector expenditure

Advertising to expenditure ratio

Use of media

Share of expenditure by retailer

HMV

Virgin

Blockbuster

MVC

Other leading advertisers

Conclusions and implications

Shopping Centres

Trends in advertising spend

Space under management

Use of media

Share of expenditure by location

Conclusions and implications

Booksellers and Stationers

Trends in advertising spend

Trends in sector sales

Advertising to sales ratio

Use of media

Share of expenditure by retailer

WH Smith

Waterstone’s

Other leading advertisers

Conclusions and implications

Sports and Leisure

Trends in advertising spend

Trends in sector expenditure

Advertising to expenditure ratio

Use of media

Share of expenditure by retailer

JJB Sports

JD Sports

Allsport

Other leading advertisers

Conclusions and implications

Jewellers

Trends in advertising spend

Trends in consumer expenditure

Advertising to expenditure ratio

Use of media

Share of expenditure by retailer

Signet Group

Other leading retailers

Conclusions and implications

Toy Retailers

Trends in advertising spend

Trends in sector sales

Advertising to expenditure ratio

Use of media

Share of expenditure by retailer

Toys ‘R’ Us

Other leading advertisers

Conclusions and implications

Garden Centres

Trends in advertising spend

Trends in sector sales

Advertising to expenditure ratio

Use of media

Share of expenditure by retailer

Wyevale

Other leading advertisers

Conclusions and implications

Off-licences

Trends in advertising spend

Trends in sector sales

Advertising to sales ratio

Use of media

Share of expenditure by retailer

First Quench

Other leading advertisers

Conclusions and implications

Factors Affecting Consumer Awareness of and Exposure to Advertising

Commercial TV viewing habits

Access to new television channels

Use of print media – newspapers

Use of print media – consumer magazines

Awareness of adverts in print media

Radio listening habits

Cinema-going

The great outdoors

General attitudes towards advertising

Men

Women

Children aged 7-10

Children aged 11-14

Children 15-19

Conclusions and implications

Consumer Recall of Retail Advertising

Recall of food retailers’ advertising

Influence of TV viewing

Influence of newspapers

Recall of non-food retailers’ advertising

DIY retailers

Chemists and drugstores

Furniture retailers

Electrical goods retailers

Mixed goods retailers

Clothing retailers

Department stores

Conclusions and implications

Consumer Attitudes Towards Advertising

Retail advertising as information provider

Influence of TV viewing

Influence of newspaper readership

Retail advertising’s effect on shopper behaviour

Influence of TV viewing habits

Influence of newspaper readership

Perceptions of advertising – grocery shoppers

Perceptions of advertising – non-food shoppers

DIY goods retailers

Chemists and drugstores

Electrical goods retailers

Furniture and furnishings retailers

Mixed goods and variety goods retailers

Clothing retailers

Department stores

Conclusions and implications

Issues in Retail Advertising

Trends in retailer advertising spend

Trends in use of media

Issues in TV advertising

Issues in newspaper advertising

Issues in magazine advertising

Issues in radio advertising

Issues in outdoor advertising

Issues in direct mail and use of loyalty card information

Growth in use of in-store media

Take-up of new media

Media mix in campaign strategy

Issues in style and content of advertising

Most-admired retailer campaigns

Least-admired campaigns

Future and Conclusions

Consumer pull or retailer push?

In adversity: advertise

But high adspend can lead to commercial success

Effectiveness of advertising is of paramount importance

Advertising a powerful influence on consumers…

…but there is a danger of contributing to cynicism of advertising

Are award-winning campaigns effective?

Is targeting as effective as it could be?

Below-the-line communications increasing in importance…

…likely to be adverse impact on above-the-line

Prospects for 2003