Glossy flyers fade

According to a new survey from CBS, advertising material do not encourage consumers to go to the shop any more

The Danish consumer receives 4 advertising flyers in his mailbox every day. Billions are spent on marketing in the supermarket industry, and there are more advertising flyers than ever, but the consumers are not encouraged to go to the shop as they used to in the past. 

This is the result of the first independent survey of the advertising flyers' impact on the supermarket industry. According to Per Østergaard Jacobsen from the Department of Operations Management at CBS, habits make the industry keep spending money on the flyers, although they do not have the desired effect.

- This industry seems a little inflexible, which may be an obstacle to new development, says Per Østergaard Jacobsen, who has co-authored the survey ’Effekter & virkningsgrader af markedsføring – Casestudie af tilbudsaviser i detailhandlen’ (marketing effects and efficiencies - a case study of advertising material in the retail industry), which is the first independent survey of the advertising flyers' impact on the supermarket industry.

Contributions do not have the desired effect

Suppliers contribute DKK 7 billion to the supermarkets every year to get their products promoted - also by means of advertising flyers - and sell their products in the supermarkets. But according to the report, these contributions do not have the desired effect. 

- The contribution is in fact higher than the amount spent on marketing. To produce and manufacture advertising flyers for the supermarkets is actually a business in itself, even if a part of the contribution is used for giving discounts, says Claus Varnes, Associate Professor from the Department of Operations Management and co-author of the survey.

Prices are increasing

The Danish prices on groceries are among the highest in Europe, and the survey is therefore discussing whether the high marketing contribution can be a part of the reason why.

According to Per Østergaard Jacobsen and Claus Varnes, the question is how far the industry is willing to go, and if new political initiatives will "force" the industry to act differently. For instance, the Danish consumers could be granted the opportunity to say "yes" to receiving advertising flyers in the mailbox instead of "no".

CBS' survey on marketing effects and efficiencies - 12 January 2012 - in Danish.pdf