How are food companies responding to changes in advertising?

The world of advertising is changing. This presents a range of challenges, as well as a range of opportunities, for food companies.

While the changing legislative landscape can restrict what food companies can advertise, their abundance of first-hand consumer data also gives them a key advantage in a digital advertising world increasingly focused on privacy.

At the Advertising Week Europe event in London last week, companies such as Tesco, Coca-Cola, Deliveroo and Mondelēz International spoke about how they are responding to these new developments.

How is Tesco advertising in-store?

Advertising is migrating in-store. In UK supermarket retailer Tesco, for example, the company has six times as many in-store screens for advertising as it did at the same time last year, according to Nick Ashley, client development director at Tesco Media and Insight Platform.

Tesco is providing data from its loyalty cards to companies such as PepsiCo, Danone and Mondelēz International, providing them with insights into UK shopping behaviours which they use to develop their advertising.

Shops are the next ‘major media channel’ for advertising, according to Ashley. Despite a widespread shift to online shopping, he said, 85% of purchases are still made in-store, and up to 85% of these in-store consumers are making on-the-spot decisions. Because of these factors, said Ashley, in-store marketing drives sales.

Advertising in-store could provide retailers like Tesco with an opportunity to avoid the HFSS ad ban. Image Source: Getty Images/onurdongel

The data from its loyalty card allows Tesco to track the success or failure of this marketing. “We can very clearly tell you whether there’s been a sales uplift for that particular piece of activity on the stores that you run digital screens or digital activity versus (those) you haven’t.”