News media readers are out shopping more than non-readers and they’re also inclined to spend more. With high spend on home, garden, homewares and furnishings, LANCE CLATWORTHY explores the opportunity that news media provides for advertisers. Retail expenditure release Today’s ABS release shows retail expenditure dropping -0.1% for the month of March compared...
Retail expenditure release
Today’s ABS release shows retail expenditure dropping -0.1% for the month of March compared to February 2017 (seasonally adjusted). Annual figures give us a bigger picture view with total sales increasing +3.1 per cent for the 12 months to March 2017 compared with the 12 months to March 2016. Within this environment Department stores continue to be challenged with a year on year decline of -1.3 per cent while Household goods sales grew +2.3 per cent (eg Hardware, homewares, electrical, floor coverings, furniture).
News media readers shop at more stores
Latest emma™ research shows us that there are now 16.7m news media readers and that they are more likely to be out shopping than is the case for those who don’t read news media. While 16.2m have shopped at a supermarket in the last 4 weeks, 1.7m have shopped at a home interiors store – that’s +19 per cent more likely than no readers. We see similar skews on discount department stores (+16%), the broader category of department stores (+7%) and hardware stores (+15%).
Big spenders on home related goods and services
If readers are shopping more then what categories are they spending more money on? Well, their visits to home interiors and hardware stores gives us a clue which we can see confirmed by readers’ likelihood to be in the top 20 per cent of spenders – they’re 52 per cent more likely to be the bigger spenders on dwelling repairs and maintenance, while also over indexing on garden/hardware (+28%), white goods (+20%) and homewares/furnishings (+12%). These represent some of the retail spend categories that readers most over index on compared to non-readers – it’s attractive territory for advertisers looking for bang for their buck.
Engaged heavy newspaper readers providing extra value
Both print and digital news media over index well on these 4 home related categories. They perform similarly well, but especially well for heavy newspaper readers. Those who read seven issues or more a week are 85 per cent more likely to be in the top 20 per cent of spenders on dwelling repairs and maintenance while also being 41 per cent more likely in the more retail focused category of garden and hardware. It’s these heavy readers that not only read more issues but read more sections too – that’s increased engagement that provides even more value for the advertiser.
Gardening, furniture and floor coverings
More specifically, within these categories, plants, household utensils (eg glassware, tableware, cutlery) and ornamental furnishings over index on news media readers who are in the top 20 per cent of spenders. We should also mention furniture and floor coverings which are high spend items. Compared to non-readers, news media readers are 40 per cent more likely to be top spenders on furniture and 22 per cent more likely in floor coverings.
10.9m readers buy at department stores (3 months)
So, compared to non-readers, news media readers are out shopping, they’re spending money and they’re spending more on home related goods in particular. But in what retail chains are they spending it? 50 per cent of readers buy from Bunnings every 3 months or more, while of the department stores Kmart (44%), Big W (43%) and Target (42%) are similarly frequented.
75% try to buy Australian made
emma™ research also provides insight into some of the attitudes of news media readers in comparison to non-readers. 75 per cent of readers say that they try to buy Australian made products – that’s 13 per cent more likely to agree than non-readers. Readers also have more of a dislike of self-assembly furniture, although it is only 33 per cent of them who say they don’t like it.
Shopping more and splashing out more
Advertisers can expect more bang for their buck when accessing news media readers in home and garden categories. Compared to non-readers, readers shop more and spend more than non-readers – especially within these categories. The benefits are further emphasized when we look at highly engaged heavy newspaper readers because they are even more likely to be in the top 20 per cent of spenders improving and adorning their homes.
Source: emma™ 12 months to February 2017. Readership based on last four weeks. Survey conducted by Ipsos MediaCT, people 14+ ; Nielsen DRM February 2017, People 14+ only. ABS Retail Expenditure March 2017 -Month v prior month is seasonally adjusted; 12 months v last year is trend data.