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Ad spend shifts and sways,
Digital leads, health holds sway,
Nielsen charts the way.
Nielsen tracks a decade of shifts in Australia's food and beverage ad spend
Nielsen has unveiled its 2024 Food and Beverage Report, providing a decade-long overview of advertising spend, media trends, and consumer shifts within Australia's food and beverage sector. The report highlights the strategic adaptations of industry leaders, including fast food giants and emerging health-conscious brands, over the past ten years.
The report reveals that 100 occasional food and beverage brands have significantly increased their ad spend over the past decade. It also underscores the significant growth in ad spend by major advertisers, the diversification of media channels, and shifting consumer attitudes towards food choices and marketing.
"Occasional food, beverages and quick service restaurants remain as major players when it comes to advertising, targeting younger, digitally savvy audiences while capitalising on the broad reach of traditional media, like TV. Their ability to seamlessly blend TV, out-of-home, and social media campaigns has been a key factor in their success and in sustaining market share," says Rose Lopreiato, Nielsen Ad Intel’s Australia Commercial Lead.
Digital platforms have become a central focus for food and beverage advertisers, with digital ad spend in the sector surpassing traditional formats in 2023, led by social media. "Digital media is driving the future of advertising, particularly as consumers demand content that is more personalised and relevant. The rise of social media spend shows that brands are keen to reach their audiences where they spend most of their time," Lopreiato adds.
Health-focused brands like Marley Spoon and Hello Fresh have increased their advertising to cater to the growing demand for more convenient, healthier meal options. "As consumers become more health-conscious, the food industry is being pushed to rethink how it markets its products. Brands that can deliver on convenience without compromising on health are well-positioned to meet the evolving expectations of Australian consumers," says Glenn Channell, Nielsen’s Pacific Head of Advanced Analytics.
Despite a decline in metropolitan TV ad spend from $269.5 million in 2014 to $202.3 million in 2023, TV continues to be a channel for building brand awareness. By 2023, more than half (51.1%) of consumers agreed that advertising plays a role in contributing to unhealthy eating habits in children, up from 48.2% in 2014.
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