Report: Retailers spend less on advertising
Retailers in Hungary spent just 4% more on advertising in year-on-year terms in the first half of the year, slowing from an average y.o.y. rise of 40% in the past couple of years, chiefly due to the Sunday closings law, which took effect on March 15, Hungarian online daily vg.hu reported today citing research by Kantar Media.
Out of the nine largest retail chains in Hungary, three decreased their advertising expenditures in the first half, with German-based Aldi halving advertising spending and German-based Lidl leading the group with HUF 9 bln in advertising expenditures.
Monthly data revealed that in April, the month after the law restricting retailers from opening on Sundays took effect, six of the nine largest retail chains reduced their spending on advertising. However, Hungarian-owned CBA, which has often been criticized as being favored by the measure, spent 5% and 42% less in the first two months of the year, respectively, while in March and April the retailer spent 147% and 268% more, respectively, in year-on-year terms.
The research by Kantar Media says that the introduction of the law had an “evident negative impact”.
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