How To Target Irish Consumers That Are Becoming Savvier And More Selective In Their Spending

 Namnews, 24th April 2023

Amid soaring inflation in Ireland, 53% of shoppers say they are using more vouchers and money off coupons to do their shopping.

The data from a new consumer behaviour survey from Talon in Ireland, conducted by research partner Spark Market Research, found that a third of respondents were spending €51 or more on their main weekly grocery shop compared to the same time last year.

Spending was highest amongst shoppers between the ages of 45-54 (76%), with those aged between 25-34 spending the least (67%). The findings suggest that people in the older age cohort are the most financially secure, and those in their late 20s and early 30s are feeling the pinch most.

The study from Talon also reveals that Irish consumers are embracing discount retailers. 54% say they have already switched from their main grocery providers as the cost-of-living crisis bites. With this in mind, Ireland has become a nation of those who are willing to shop around, with 63% admitting to shopping in 2-3 different grocery stores a week.

In a bid to cut back on spend, more than half (54%) of Irish shoppers surveyed admit to purchasing supermarket own-label items over brands, but those that do opt for brands are more likely to do so for alcohol (63%), hot and soft drinks (58%) and confectionery (47%) products.

One of the main highlights of the research is the emerging trend of savvy shoppers, who are focusing on planning their weekly shop. 63% of Irish shoppers surveyed say they make shopping lists, with 83% of those writing the list the day of or the day before they do their shop.

With Irish consumers being more selective about how they spend, Talon noted that it is an important time for advertisers to ensure they are planning their OOH advertising campaigns effectively to reach target audiences. The firm has offered some top tips to help brands and retailers navigate these new behaviours:

• Harness the right data – Clever use of data amplifies campaign relevance, transforming digital out of home advertising into a real-time marketing platform. Using data, brands can target those hard-to-reach audiences (25-34s & 18-24s), hitting them with a value message – driving immediate engagement and boosting real-time conversion.
• Don’t be restrictive – People are exposed to a broad range of mediums every day. A strategically planned multi-format, multi-environment campaign maximises reach and ensures consumers are influenced at all stages of the consumer journey. Brands that include proximity targeting alongside broadcast awareness formats are more likely to be selected by consumers.
• Think about the journey – There is an opportunity for brands to steal share of mind in the planning phase, and capture consumers’ attention throughout the purchasing journey. Out-of-home is a great medium for driving brand awareness through its ability to reach broad audiences, cost-effectively.

Caroline Decourcy, insights director at Talon in Ireland, commented: “Irish consumers are continuing to feel the pressure of the cost of living crisis, with many shifting their shopping habits as we become savvier and more selective in our spending. However, there are still ways for brands and retailers to reach consumers effectively. This can be particularly impactful through targeted out-of-home (OOH) advertising with value-based messaging that is driven by data insights to reach the right shoppers, at the right time in their purchasing journey and in the right environments.”

NAM Implications:

• Patently shoppers are responding ‘appropriately’ to Lockdown fallout pressures:
  • Shopping around
  • Switching to own-label alternatives
  • Switching to the discounters
• Meaning traditional retailers and brands need to make their offerings so appealing that shoppers are less willing to change…
• …since given sufficient time to appreciate the merits of alternatives…
• …getting them back will be increasingly difficult.