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Harvey Norman’s Milking Of Brands Pays Off

It’s official Harvey Norman is Australia’s #1 advertiser, or another way of looking at it is that the brands who are milked of millions by the big retailer are.

According to the latest data released by Nielsen Ad Intel Harvey Norman retains its position as one of Australia’s major retail advertisers and it’s a highly profitable for the retailer who charges brands for space inside a Harvey Norman ad or TV spot.

In fact, the retailer is pocketing millions at the expense of brands with many moving to sell direct in an effort to recoup lost margins.

Globally Australia is well known for being one of the most expensive markets in the world to sell consumer electronics and appliance due to the marketing and Co-Op dollars that retailers such as Harvey Norman demand of brands.

Several brands have chosen not to do business with the big retailers.

Nielsen claim that over the past year, advertisers shifted their budgets and adapted their messaging to accommodate the change in consumer behaviour due to the pandemic.

The Communications category is the second largest sector with internet content services, internet providers and mobile communications contributing significantly to the amount of money spent on advertising services with Optus, Telstra and the likes of Samsung and Apple who also fund Telstra and Harvey Norman advertising among the biggest technology advertiser in Australia.

Rose Lopreiato from Nielsen said “We are seeing more brands play their part in helping businesses back on their feet since the beginning of the pandemic. Importantly, this isn’t just an arena for banks and large conglomerates to play in, even smaller brands can help business owners, employees or those now unemployed in a way that is unique to them.”

For the Automotive industry, green shoots were starting to appear towards the final quarter of 2020. Sales increased compared to June last year, however global supply shortages have extended delivery waiting times and held back sales. Locally the demand for Utes is on the up and globally we are seeing the demand for environmentally friendly vehicles is becoming more apparent.

She said that Harvey Norman retains its position as Australia’s major retail advertisers, however as expected government advertising campaigns have increased markedly and in the first half of the year this was mostly driven by the Federal Government and the Victorian Government.

Whilst NSW Government has increased their visibility in the past few weeks to address the latest state restrictions, the increase in ad spend was not as notable during the first 6 months of the year.

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