Retailer greed is set to hurt mass media Companies, with Wesfarmers owned hardware retailer Bunnings moving to strip money away from mainstream media Companies, with the launch of a new media business that wants to sell directly to brands whose products they sell in their stores, we have been told that that the same approach taken by Bunnings could also be taken by Officeworks which is also owned by Wesfarmers.
How this works is simple, Bunnings believe that they have a big audience, and they have with their web site alone in February generating over 30 million visitors a month, then there are millions in traffic through their stores.
Instead of spending money on traditional TV, digital, print and radio media Bunnings wants suppliers to spend with Bunnings a move that could hurt several media Companies that are already suffering claim observers.
Recently Wesfarmers, registered a trademark ‘Hammer Media’ with suppliers told of the initiative this week.
The Australian reported that Wesfarmers is also using the initiative to try and bolster their share value with a briefing to analysts set to be presented at the Bunnings investor day, scheduled for Thursday week.
Hammer Media will be the key platform for suppliers to advertise within Bunnings stores, such as on new LED displays at the entrance or shelf displays, as well as outside the store, including in the retailers magazines and social media.
According to brands that ChannelNews has spoken to, the initiative is being seen as “Yet another retailer asks for money”.
As one major supplier said,” We only have one marketing and advertising budget and what will happen is that dollars will be moved from traditional media buys to Bunnings”.
“What happens is that their buyers start pressuring brands to spend internally instead of externally and when you are chasing ranging it becomes a key part of the discussion”.
Bunnings executives hope the new media platform will allow brands, both retail and trade, to develop deeper connections with Bunnings customers at each step of the shopping journey, leading to more informed purchasing decisions.
At this stage it appears that Hammer Media executives will claim that they will give suppliers access to more than 14 million unique website visitors monthly, in addition to in-store customers, social media followers and the No.1 home and lifestyle print publication, Bunnings Warehouse magazine.
“Hammer Media represented a significant step forward in its commitment to innovation and growth in both digital and retail media,” said Bunnings marketing chief Justine Mills.
Hammer Media will streamline messaging and enhance brand awareness across Bunnings channels such as social media, websites, in-stoWesfarmers owned hardware retailer Bunnings has moved to strip money away from mainstream media Companies, with the launch of a new media business that wants to sell directly to brands whose products they sell in their stores, we have been told that that the same approach taken by Bunnings could also be taken by Officeworks which is also owned by Wesfarmers.
How this works is simple, Bunnings believe that they have a big audience, and they have with their web site alone in February generating over 30 million visitors a month, then there are millions in traffic through their stores.
Instead of spending money on traditional TV, digital, print and radio media Bunnings wants suppliers to spend with Bunnings a move that could hurt several media Companies that are already suffering claim observers.
Recently Wesfarmers, registered a trademark ‘Hammer Media’ with suppliers told of the initiative this week.
The Australian reported that Wesfarmers is also using the initiative to try and bolster their share value with a briefing to analysts set to be presented at the Bunnings investor day, scheduled for Thursday week.
Hammer Media will be the key platform for suppliers to advertise within Bunnings stores, such as on new LED displays at the entrance or shelf displays, as well as outside the store, including in the retailers magazines and social media.
According to brands that ChannelNews has spoken to, the initiative is being seen as “Yet another retailer asks for money”.
As one major supplier said,” We only have one marketing and advertising budget and what will happen is that dollars will be moved from traditional media buys to Bunnings”.
Michael Schneider Bunnings CEO
“What happens is that their buyers start pressuring brands to spend internally instead of externally and when you are chasing ranging it becomes a key part of the discussion”.
Bunnings executives hope the new media platform will allow brands, both retail and trade, to develop deeper connections with Bunnings customers at each step of the shopping journey, leading to more informed purchasing decisions.
At this stage it appears that Hammer Media executives will claim that they will give suppliers access to more than 14 million unique website visitors monthly, in addition to in-store customers, social media followers and the No.1 home and lifestyle print publication, Bunnings Warehouse magazine.
“Hammer Media represented a significant step forward in its commitment to innovation and growth in both digital and retail media,” said Bunnings marketing chief Justine Mills.
Hammer Media will streamline messaging and enhance brand awareness across Bunnings channels such as social media, websites, in-store radio, emails and in-store screens.
As part of the launch of the network, 300 digital screens have been installed across 150 stores. Following trials, Bunnings suppliers have been invited to opt-in to the retail media program, with the first round of advertising in market.
This is not a new initiative Woolworths has been running their own media Company for several years funded by suppliers.
A leading media buyers said “This is another hit for the Australian media industry. The only problem is that media Companies who are going to be the losers are also getting advertising dollars from Wesfarmers and Bunning, so they are reluctant to speak out”.
“None of the millions that Bunnings are going to generate are going to through a media buying Company nor will contribute to the revenues of media companies. This is another greedy land grab by a retailer who wants more money out of a supplier”.
re radio, emails and in-store screens.
As part of the launch of the network, 300 digital screens have been installed across 150 stores. Following trials, Bunnings suppliers have been invited to opt-in to the retail media program, with the first round of advertising in market.
This is not a new initiative Woolworths has been running their own media Company for several years funded by suppliers.
A leading media buyers said “This is another hit for the Australian media industry. The only problem is that media Companies who are going to be the losers are also getting advertising dollars from Wesfarmers and Bunning, so they are reluctant to speak out”.
“None of the millions that Bunnings are going to generate are going to through a media buying Company nor will contribute to the revenues of media companies. This is another greedy land grab by a retailer who wants more money out of a supplier”.
