Home > Latest News > Massive Advertising Spend Fails To Deliver For Harvey Norman

Massive Advertising Spend Fails To Deliver For Harvey Norman

Harvey Norman was the biggest spending advertiser in Australia for 2023, according to data from Nielsen Ad intelligence with their suppliers funding the bulk of their marketing, but despite the big spend revenues and profits fell.

At Harvey Norman advertising is a profit centre with the big retailer buying advertising at one price, and then getting brands to pay up to three times the amount they have paid to get their products advertised in a Harvey Norman discount advertisement.

Harvey Norman topped the list, cementing its place as the nation’s biggest advertiser, followed by Woolworths who also make a profit selling advertising to brands they range in their stores.

With both Harvey Norman and Woolworths brands don’t often have a choice as to whether they take up an advertising offer at inflated prices.

Telstra was the highest spending telco, Uber made its Top 20 debut, placing 19th, while Toyota was the highest spending auto brand of 2023, coming in at number 14.

Nielsen Ad Intel’s Australia commercial lead, Rose Lopreiato, said: “The Ad Intel spend data for 2023 is pretty telling – marketers aren’t just relying on advertising, they’re its biggest champions. They know it’s still the best and most economical way of forging lasting connections between brands and consumers. Top-tier data, like that provided by Nielsen Ad Intel, is crucial if you want to get the edge on your competition.”

The splurge on advertising failed to help Harvey Norman’s bottom line last year with the company, which also owns Domayne and Joyce Mayne,posting a full-year 2023 underlying net profit of $471.9m, down from $673.5m the previous year.

In their financials for 2023 when they were out spending suppliers money on advertising the company, was reporting total system sales revenue of $9.193 billion with EBITDA of $1.13 billion and tax-paid profit of $539.52 million, down 33.5 per cent for the year to June 30.

In Australia, franchisee sales fell 4.9 per cent to $6.42 billion.

Overseas operational profitability fell 40.1 per cent to $139.06 million, due to macroeconomic headwinds, significant deterioration in business and consumer confidence in New Zealand and a decrease in trading in Europe.

Maybe Gerry Harvey, needs a new marketing department, as well as a team that can keep their web site up on the busierst retail day of the year Black Friday.

 



You may also like
JB Hi Fi Shares Hit $102, E&S Aquisition Seen As Green Shoot Oppertunity
Whirlpool & Kitchen Aid Company Struggles Revenues Crash 18.7% Shares Down
Gerry Harvey Wants Temu & Shein Investigated
TV Sales Slump, Premium Mobile & Notebooks Delivering Sales For CE Retailers
Big Retailers Fighting Back Against Damaging Labor Policies In OZ & UK

Popular Posts

Worldwide Appliances Jack Up Prices Ahead Of New Outdoor Cooking Range Launch
Latest News
/
/
Seagate To Acquire Intevac In All-Cash Deal
Latest News
/
/
YouTube Shorts with Veo 2
Google Boosts Online AI Video With Veo 2
Latest News
/
/
Leaked Renders Of Samsung Budget Galaxy A36 Revealed
Latest News
/
/
French AV Brands Getting Traction In OZ Advance Paris The Latest
Latest News
/
/

Digital Magazines

Recent Post

Worldwide Appliances Jack Up Prices Ahead Of New Outdoor Cooking Range Launch
Latest News
/
//
Comments are Off
  Six months after Worldwide Appliances took on the Everdure Barbecue brand the business has announced price rises of between...
Read More