The radio industry has long been the medium that reaches consumers closest to purchase. In today's fast-paced world, it's become a big advantage to reach supermarket's key female customer. Radio has become the go-to place for grocery stores, spending more on radio advertising than television stations or newspapers.
Radio supermarket advertising was up 24% to $139 million in the first half of 2010 according to Kantar Media. When convenience and liquor stores are added to the mix, RAB data shows the broader category has grown 16% to $686 million through September.
Radio's biggest supermarket customer is Safeway, which spent $146.3 million on radio through September according to RAB. That's up 32% compared to last year. The rapidly-expanding Aldi chain is a prime example. "As we continue to grow and emerge in new markets we will continue to use a combination of radio, TV and print advertising," Aldi spokeswoman Katherine Davis says.
"Traditionally Aldi has limited our marketing efforts which have allowed us to keep advertising costs down and prices low."
Aldi spent $6.3 million on radio during the third quarter, up from just $250,000 during the same period one year ago. So far this year, it's spent $19.1 million on radio. That's a big increase for a chain that bought its first TV commercial just two years ago.
The supermarket sector is a low-margin business, with a fine line between making and losing money. As a result, most chains won't talk about their marketing -- or use of radio. But Food Lion went public with news of its marketing plans earlier this year, announcing it would take to radio, print, online and outdoor to promote "new, lower prices" across the 11 Southeast and Mid-Atlantic states it operates. VP of marketing Ken Mills says they believe the ads will "set us apart from other grocery retailers."
(Source: Inside Radio, 12/13/10)
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