State of Digital Advertising 2024: Supermarkets Snapshot

With the lines between in-person and online shopping continuing to blur, digital advertising is a key strategy for supermarkets to boost sales and connect customers with their new offerings that improve the buying experience. Supermarkets' digital ad creatives not only inform customers about deals and low prices, but they can also promote their new features like grocery delivery or rewards. As a result, the largest supermarkets rely on advertising across channels like Facebook, TikTok,  YouTube, desktop, and OTT.

Sensor Tower’s State of Digital Advertising 2024 Supermarkets Snapshot report dives deep into the latest trends in digital advertising across the United States, the United Kingdom, and more. In the United States, supermarket digital ad spend surpassed $700 million over the 12 months between September 2023 and August 2024.

Supermarkets Advertising is Stable in the US Entering the Holiday Season

In the US, digital ad spend from supermarkets has been quite consistent since the start of 2023, hovering around $60 million most months. This has resulted in total ad spend being roughly flat during the past 12 months compared to the year prior. Look for spend to ramp up soon as grocery stores prepare for their holiday ads.

Supermarkets have increased digital advertising in a few other markets. Ad spend in Germany was up 36% year-over-year, and spend climbed 17% YoY in France. Supermarkets also account for a higher share of overall digital ad spend in these countries than in the US — supermarkets took around 3% of digital ad spend over the past 12 months in both Germany and France compared to roughly 1% in the US.

Supermarket Digital Ads Promote Mobile Apps as a Way to Improve the Shopping Experience and Boost Customer Loyalty

Kroger, the leader in US digital ad spend and impressions, also had the most mobile app downloads across iOS and Google Play in the past 12 months. For Kroger, the mobile app provides ways to reward customer loyalty and promote additional offerings like delivery. Many of Kroger's ad creatives featured depictions of a shopper using the mobile app, a nice way to show how mobile can help improve the shopping experience.

However, some top supermarkets have achieved high mobile adoption without a lot of spending through digital ads. Supermarkets like Safeway and Albertsons have high app downloads despite not spending as much on digital ads. These supermarkets, both owned by Albertsons Companies Inc., entice shoppers to their apps with coupons and rewards.

In the UK, Tesco's nearly 8 million downloads between September 2023 and August 2024 were more than twice as many as any other UK supermarket. Notably, it also had more than double the downloads of Kroger, the top supermarket app in the US, suggesting that there is a strong market in the UK where contactless payments on mobile phones is common.

A few of the top digital advertisers have yet to embrace mobile at the same scale. ASDA, Waitrose, and ALDI all have relatively low mobile app adoption compared to their ad impressions.

Want More Insights on the Digital Advertising Ecosystem? Read the Full Report

Read the State of Digital Advertising 2024 Supermarket Snapshot report highlighting the advertising leaders across social, desktop, and OTT, spanning 11 countries in a dynamic, interactive format:

• Digital Advertising Overview - The latest advertising trends across categories, from shopping to travel & tourism

• Top Advertisers - Discover which supermarkets lead the way in digital ad spend

• Retail Media - Find out which US and UK supermarkets are partnering with other brands with retail media

• Top Creatives - See the latest creative strategies used by the biggest supermarkets in the US and the UK