In this 4th and final part of our Retail Therapy series, LANCE CLATWORTHY takes a look at how news media readers might be indulging themselves in food and drink over the festive period and beyond – their spending behaviours and attitudes indicating opportunities for advertisers.
Heavy readers spend more and find catalogues even more useful
Aged 14+, there are 16.6m Australians reading news media of whom 14.7m have sole or joint responsibility for buying groceries. On average, news media readers spent $294 a month per person in the household with a high 25 per cent of them saying they find catalogues useful in assisting their decisions on purchases of groceries and beverages – these catalogues being primarily found inside a newspaper.*2
And advertisers in news media, will most engage the most engaged readers – Heavy readers of news media spend $311 a month per household member, more of them state catalogues as useful and 55 per cent of them state newspapers as the source of their last catalogue. That all adds up to a bigger return for the advertising dollar.*4
Heavy users love cooking, quality ingredients & nutrition
The fact that heavy readers spend more can be explained by the fact that they demand more quality and they enjoy cooking more than the average news media reader and especially more than those who do not read news media. Compared to non-readers, heavy readers are more likely to want the right nutrition in every meal (+15% more), more likely to want the best quality ingredients (+12% more) and more likely to say they find cooking a pleasure (+11% more).*7
Heavy readers spend more on-line too
News media also provides an opportunity for advertisers to drive online purchases. There are 10.5m news media readers who bought something online in the last 3 months (63%); with 21 per cent of readers saying they searched online after reading about something in a newspaper.*8
The 2.4m readers who purchased food and beverages online, spent an average of $136 on their last transaction – that’s 8% more than non-readers who also purchased this category online. Further analysis reveals that Heavy readers spend 22 per cent more ($156) and Community newspaper readers spent 19 per cent more while readers of the Food & wine section of the newspaper paid 15 percent more on their last online transaction in the category. Accordingly, these represent strengths for advertisers in the category.*11
Supermarkets’ online traffic has grown +25%
Where are they going for online purchase of food and beverages? Well, 583000 news media readers have used either Coles online or Woolworths online in the last month – that’s a growth of 25 per cent on those who purchased, at either of the sites, 12 months ago. News media readers are buying more online and it’s actually the heavy readers who display the biggest growth in this respect – they’re on a catch up.*12
The indications are that it’s Woolworths online that enjoys a significantly higher spend. Among those who have shopped at Woolworths online in the last month, their last online purchase of food and beverages was $178 (on whatever site they last purchased). For Coles online, the equivalent spend is 30 per cent lower.*14
Heavy readers buy more alcohol in store
7.9m readers buy alcohol in store at least every 3 months and they spend more than non-readers. Most significantly, readers spent 31 per cent more than the average non-reader did on White wine the last time they bought alcohol in store. Readers also spent more on Red Wine (+17% more) and Beer (+8% more).*6
As with Grocery spend, we again find that the heavy, most engaged readers are the bigger spenders when it comes to take home alcohol. Compared to non-readers, the 2.8m heavy readers who used a liquor store, last spent more on White wine (+45 % more), more on Red wine (+27% more) and more on Beer (+10% more). Advertisers in this category are therefore getting a bigger bang for their buck.*6
Bulk purchase and Australian wines are the order of the day
That higher spend is illustrated by the fact that heavy readers are 28 per cent more likely to prefer buying liquor in bulk (eg by the case). They’re also 34 per cent more likely to think Australian wines are better than wines from other countries – another opportunity for brand owners and retailers looking to improve the brand or to drive a call to action for a domestically produced wine.
Heavy readers are buying more alcohol online
In terms of the opportunity to connect with potential online buyers, there are 1m readers who say they now buy more alcohol online than in store; that’s 24 per cent more likely than among non-readers. There are 312000 Community newspaper readers who are in this cohort (45% more likely); 373k Heavy readers (46% more likely) and 374k readers of the Food and wine section of the newspaper.
Reaching 91 per cent of Grocery buyers, news media and catalogue inserts provide advertising opportunities for food and alcohol. These opportunities are especially strong given the increased average spend of the heavy readers.
Source: emma™ 12 months to Sep 2017. Readership based on last four weeks. Survey conducted by Ipsos Connect, people 14+ ; Nielsen DRM Sep 2017, People 14+ only.
*1 News media readers who are Grocery buyers : Solely or mainly responsible/Partly or jointly responsible.
*2 Catalogues (& unaddressed mail) – Media most useful for Groceries & Beverages decisions (multicode) – News media readers (& Heavy readers *4).
*3 Of those that said Catalogues are useful (*2), the percentage that say last catalogue came inside a newspaper – News media readers (& Heavy readers *4).
*4 Heavy readers read any newspapers at least 30 minutes a day OR read at least 7 issues of any newspaper a week. Indexed v all aged 14+ = 100ix.
*5 Use a liquor chain to shop in store at least every 3 months.
*6 Amount spent on last visit to store – News media readers (& Heavy readers *4) indexed v Non-readers = 100ix.
*7 Percentage agree indexed v Non-readers = 100ix.
*8 Bought something online in last 3 months.
*9 News media readers.
*10 News media readers buying food & beverages online at least every 12 months.
*11 Amount spent on last online shop for food & beverages (excluding those not shopped) – Expressed as an increase on that for non-readers.
*12 News media readers who have used Coles online or Woolworths online in the last 4 weeks.
*13 Percentage gain in *12 for Sep17 v Sep16.
*14 For news media readers who have bought from Woolworths online/Coles online in the last 4 weeks – spent online with last purchase of food & beverages from whatever site (including Woolworths, Coles etc). $135 average for all news media readers who have made an online purchase in the category in the last 4 weeks.
*15 Percentage news media readers saying they buy more alcohol online than instore – Indexed v Non-readers = 100ix. “k” is from a total of 16.7m news media readers, 3.8m Community newspaper readers, 4.4m Heavy newspaper readers and 4.7m readers of the Food & Wine section of a newspaper.