YOU ARE HERE > Home > Why In-Store Media
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WHY USE INSTORE MEDIA |
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Communication Clutter |
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Decisions Made at Point of Sale |
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Facts About Instore Media |
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How cost effective is it to use instore media? |
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COMMUNICATION CLUTTER |
The world of advertising continues to be dominated by increasing fragmentation as each media type vies to gain the attention of the relevant consumer whilst instore.
Consumers are bombarded more and more with media messages from every conceivable angle. This heavy clutter of communication also means huge dilution per media delivery point and of course huge budgets needed to reach the same audience given varied channels of communication.
Serious dramatic shifts have been noticed in the media landscape in last 3 decades:
| Medium | 1975 |
1991 |
1998 |
2000 |
2001 |
2002 |
2003 |
2004 |
2006 |
Mar |
TV Stations |
nil |
7 |
37 |
56 |
65 |
60 |
74 |
67 |
74 |
85 |
Radio Stations |
7 |
34 |
120 |
105 |
100 |
106 |
109 |
117 |
115 |
135 |
Daily Newspapers |
22 |
18 |
17 |
17 |
17 |
18 |
19 |
18 |
20 |
21 |
Major Weeklies |
19 |
19 |
20 |
21 |
22 |
22 |
25 |
25 |
28 |
30 |
Consumer Magazines |
180 |
250 |
450 |
480 |
500 |
515 |
535 |
550 |
610 |
690 |
Business to Business |
219 |
300 |
550 |
580 |
560 |
580 |
610 |
640 |
725 |
775 |
Community Newspapers |
N/A |
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255 |
260 |
265 |
272 |
295 |
330 |
375 |
475 |
This growth of media has truly changed the shape & form of talking to someone who has the means to not only be interested in consuming your product, but also have the power to buy that product.
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DECISIONS MADE INSTORE - AT POINT OF SALE |
But the battle of the brands is won at the point of sale – in the store itself – where shoppers, cash and brands come together. For supermarket brands, the path to point of purchase from couch to carpark to cash register is where profitable games are played now!
International research has affirmed belief in the value of the instore environment and POS display as a marketing media – by 2010 budget spend towards instore advertising (shopper marketing, point of sale advertising or marketing at retail as it is known to others) will have increased by 21% for manufacturers and 26% for retailers (source: GMA/Deloitte Consulting LLP 2007 Shopper Marketing Study Results). “In fact this spend will increase dramatically against a decline of spends in other media.”
If you are still not convinced that point of sale in the Instore environment is truly where shoppers make decisions then – here a few facts to take into consideration of brand and media planning, for now and in the future, is dependent on delivering credible and relevant messages at every touch point along the shopper’s journey. This, without a doubt, is what will ensure maximum success
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FACTS ABOUT INSTORE MEDIA |
If you are still not convinced – here a few facts to take into consideration:
- An average consumer is exposed to 3,000 marketing messages daily.
- Number of retail chains have more than doubled in just 50 years.
- An average supermarket exposes a shopper to 45,000 SKU’s.
- 32,624 new products were introduced in 2006 alone instore.
- 70% of purchase decisions are made instore.
- 68% of shoppers are brand switchers .
- 73% of shoppers shop in 5 OR more channels.
- Only 26% of shoppers are loyal to an average retailer.
- 70% of all shopping decisions are made instore – so your brand cannot risk being drowned out by all the clutter.
- A shopper merely looking at your brand increases consideration of your brand by 30-120%, and so you can make shoppers aware of the visual intrinsics of brand through pop message placed directly in front of your brand.
It goes without saying then that the potential of a store to create impressions at point of sale and build brand equity is tremendous. Compared to other marketing media – its power to influence and change mindsets to purchases made is amazing.
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HOW COST EFFECTIVE IS IT TO USE INSTORE MEDIA? |
Question to ask then is what is the cost to reach 1000 of your shoppers versus to reach a 1000 of them as consumers through other marketing media –
more so given the impact of this instore environment to expose, influence & sway
shoppers’ decision-making at point of sale – where it matters.
In South Africa, when comparing instore media to traditional media in cost per thousand’s viewers/readers/listeners vs. consumers in shopper mode i.e. shoppers – the results speak for themselves.
The above endorses the cost-effectiveness of speaking to shoppers when instore. Where this marketing media environment has the credibility to expose, influence & sway shoppers’ decision-making instore – where it matters – at the point of purchase - and ultimately deliver a transaction by closing the sale.
