Coupons, Signs Beat In-Store Tech
A Deloitte study on the subject of shopper marketing found that it is the faster growing marketing medium for CPG companies, who spend 8% of their marketing budget on it (or up to 35% if all forms of trade promotions are included). But, despite the $25 billion or so that is spent annually to advertise in-store, most CPG marketers don't usually know the ROI on those budgets, as it's often impossible to separate the impact of TV ads, in-store promotions, circulars, etc.
One research study that did quantify the impact of promotional marketing tactics comes from TNS (covered in Advertising Age and Promo). They found, in relation to cereal shopping, that the most influential programs were in-store samples, package ads, coupon dispensers, in-store flyers, display racks and end-aisle displays, while the least influential were ceiling ads, in-store audio and floor ads. Most of the newer media types (such as ads on carts, in-store TVs and video displays) were in the lower half of the influence spectrum.
When it comes to in-store marketing, marketers need to remember the following:
- 70% of purchase decisions are made at the shelf so you need to identify which locations have the highest exposure with key products.
- "The more closely aligned the ad is with the category and product, the better... A lot of newer in-store media are out of place because the best place to get a shopper's attention is about 40 inches above the floor, not on the floor or dangling from the ceiling."
- In-store TV has potential if screens are kept as low as possible and the content is relevant to adjacent categories.
- Just being influential doesn't necessarily make for an effective medium. For example, sampling can usually drive sales but it's so expensive that it's hard to deliver a positive ROI, while other media that were found to be less influential could actually be more effective if they're less cluttered by competitive advertising.
- In order to stand out from the crowd when it comes to in-store coupons and flyers -- focus on creativity .
- When reviewing in-store strategy, keep in mind the brand’s objective, the appropriate mix of touch points, the cost to implement the tactics, the potential logistical challenges and the target audience.
Posted by Universal Ad
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