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Sensor Tower · Abraham Yousef · October 2024
Post Consumer Brands Increase Advertising Spend as Consumers Consider Private Label
As US shoppers prioritize savings in their non-discretionary purchases, they are shifting their interest to private label products vs. branded products to capitalize on value. Per ST data, US cereals & muesli advertisers are increasing their ad spend potentially as a way to winback customers, with spending up 25% YoY in 2Q24. Post Consumer Brands has been the most aggressive in its 2024 advertising push, increasing spend by 350% YoY in the US
Key Takeaways:
US ad spend across the cereals & muesli category has steadily grown in 3Q24 QTD and is projected to increase 100% YoY, potentially in response by major advertisers to re-engage US consumers who shifted to private label offerings in an effort to save money
US ad spend in the category was up ~25% YoY in 2Q24, led by Nature’s Path Foods, Post Consumer Brands, and WK Kellogg, who increased spend by 85x, ~350%, and 50% YoY, respectively
General Mills is the largest advertiser across the cereals cohort, though the advertiser has pulled back on its overall advertising spend in 1H24, down 20% YoY, including a 15% YoY decrease of spend within the cereals subcategory
Comparatively, Post Consumer Brands and WK Kellogg increased their US ad spend by 100% and 30% YoY, with cereals-specific spend up 150% and 40% YoY, respectively
General Mills, WK Kellogg, and Post Consumer Brands account for 41%, 35%, and 21% of spend across the cohort, respectively. Post Consumer Brands has seen the greatest increase in paid SOV across the cohort, up 17ppts YoY in 3Q24, as it leaned more heavily on digital advertising to drive consumer interest
Per ST data, cereal advertisers are pivoting their messaging to highlight deals to attract potential consumers, as US ad spend connected to savings increased by 12x YoY in 3Q24 QTD. Post Consumer Brands has been the most aggressive advertiser amongst the cohort for savings-specific content, accounting for 70% of spend in 2024 YTD, as the advertiser has leveraged its Malt-O-Meal brand as a budget offering to cost-conscious consumers
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