With their advertising dollars on the line, the big brands are trying to win back the hearts and minds of consumers with an ad campaign that uses their brand and their brand’s image.
And in some cases, it works.
In Australia, the biggest ad spenders are those that use their brand image and brand’s name in house, with brands including Kmart, Woolworths and Kmart’s Australian unit spending more than $200 million on advertising and promotion over the last two years.
But that figure is dwarfed by the $4.5 billion that Coca-Cola Australia spends annually on marketing in Australia, and that’s not even accounting for all the other brands that use its name and likeness.
Key points:Advertising in-houses can help brand loyaltyGo to the ad network that provides you with a list of all the ad networks that your company is using and how much each one is payingWhat you need to know about advertising in AustraliaAs a general rule, the bigger the company, the more time a brand spends on it, and advertisers are paying a premium for the privilege of being able to spend more time with their brands.
That is why big brands like Coke and Pepsi are so keen on getting in-depth knowledge of each other’s brands, to find the right combination of features to appeal to their customers.
Advertisers are also keen to get their message out in as many ways as possible.
For that reason, brands are looking for ways to engage with the consumer by offering a range of offers that they can’t get elsewhere.
The biggest and most successful companies in Australia are also the ones that use ad networks to build a strong relationship with their customers, which is why they often spend more on advertising in general and more on in-home ads in particular.
Advertising networks are not just for big brandsThere are many different ways in which advertisers can advertise their services, and the biggest advertising networks are all very different.
For example, Kmart and Woolworth’s Australian advertising arm, Adecco, is run by a team of marketers, with each department being responsible for their own marketing efforts.
Adeccos team is paid for with its own advertising budget, and it is funded by ad revenues from both the Australian and international markets.
These ad revenues help fund the business’s advertising initiatives, including advertising in local media and print, and online campaigns.
While this may sound like a great model for ad agencies, the reality is that this approach doesn’t scale very well.
In the past year, KMart and Woolwool have been forced to cut staff in both areas, while Adecci has had to close down its Australian office due to declining ad revenues.
In the last financial year, Adeco spent more than a billion dollars on advertising across its five Australian locations, but only $1.5 million of that was in-person advertising.
In-house advertising is not as profitable as out-of-market advertising, so it makes sense for Adecos team to focus on local advertising, rather than international.
So what’s the bottom line?
In the end, it’s about getting the right product and the right service delivered in the right way.
In some cases it’s better to have a large amount of advertising in a local market, because it allows you to reach customers more effectively, but in other cases it may be better to invest in advertising in an out-market area, to reach your customers at a more granular level.
But don’t be surprised if you see more out-and-out local advertising in the near future.
A lot of people still have to rely on the likes of Coca-cola or Woolworth to get them to buy the products they love.