2008 POP BUDGET PREDICTIONS

How do you predict your instore marketing-related budget will change for 2008?
Source: Instore Marketing Institute/POP Times - POP Trends Report 2008

The senior guys are now walking the talk when it comes to the value perceived in instore media.

What creative elements are mandatory in 2008 when creating POP displays?

The top four elements noted were product imagery, price promotion, description of product benefits and features. A seemingly obvious fact, often overlooked by some of us in South Africa is that instore advertising has to command attention in a cluttered environment, deliver a strategic message and close the sale in seconds.

While that may seem obvious to most of you, we could all do with these reminders:

• Time is not your side- shoppers don’t have the time to “ponder” over your message to get it.
  
  
• Shoppers are in a “what’s in it for me” mood- so your offer or benefit has to register within seconds in order to close the sale.
  
  
• You want the shopper to look at your brand- after all international research cites that a shopper merely looking at your brand increases consideration of your brand by 30 – 120% and of course this POP message is intended to get them to notice your brand.

So, what else did these trend-setters have to say about this environment and the importance of advertising in it?:

• Sales/scanner data research results has the most influence on the marketing and sales departments’ decision-making when implementing POP activities.
  
  
• 54% of those interviewed placed more emphasis on  POP displays in 2007 – rating this media third after packaging (60% and internet marketing (59%) with traditional media following with 42% for print ads and 14% for TV ads.

BUDGET ALLOCATIONS BY TACTIC

How did your company's budget change for each category below?
Source: Instore Marketing Institute/POP Times - POP Trends Report 2008

• 54% of marketers are allocating more dollars to more displays vs. 20% who are placing only more dollars on fewer displays.
  
  
• 32% use POP displays primarily for driving communication on new product innovation, whilst 30% use it for brand building communication.

There was a time when the marketer’s first objective for driving POP activities instore was “to lift sales.” Ultimately, that’s everyone’s objective. But if these results are anything to go by, then marketers are starting to understand that just like traditional media, instore POP has a role to play in continuing (not just once-off bursts per year) to entice, remind and sway shoppers to buy their brand/s. Marketers are realising that losing market share is not because a  competitor has stolen the market share away from them, but largely because they need to continuously maintain their brands in the minds of these shoppers.

That is brand building. And when you do it in the instore environment, you get the added benefit of enabling your brand-building POP message to close the sale.

So, with top management putting their stamp of approval on the increased use of instore media we should see companies charging ahead and achieving their ultimate objective - closing the sale with incremental purchases.

Interesting times ahead of us! Send us your feelings about these trends in our local environment.

There is only so much money out there and when international trends are showing there is  “greater emphasis on instore vs. outbound media”, it’s only a matter of time before we Mzanzi guys follow suit with what makes sales sense.

To find out more about 2008 Shopper Trends click here.