On- and Off-Premise Signage and Point-of- Purchase Communications.

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Presentation transcript:

On- and Off-Premise Signage and Point-of- Purchase Communications

2 Out-of-Home (Outdoor) Advertising $7.2 billion annually in the US Regarded as supplementary e.g., billboard(major), bus shelters, giant inflatables, shopping-mall displays, airports, bus and train transfers, sky writing, blimps, etc. Americans report traveling an average of slightly over 300 miles in a vehicle in a typical week with an average round-trip commute totaling about 55 minutes.

3 Billboard Advertising 400,000 billboards in the US Designed with name recognition as the primary objective Three major forms: (1) Poster Panels (2) Painted Bulletins (3) Digital billboards

4 Billboard Advertising Alongside highway and heavily traveled locale Silk-screened or lithographed and pasted in sheets Sold on a monthly basis Clear Channel Outdoor, CBS Outdoor, Lamar Advtg. Poster PanelsPainted Bulletins Hand painted directly on the billboard, or computer generated vinyl images Purchased for 1-3 year period To achieve a consistent and relatively permanent presence

Digital Billboards Huge flat screen TV that rotates messages every so often Potential for increased revenue for the billboard owner Expensive to install ($250,000 each); represent visual pollution and distracts drivers Offer flexibility to advertisers (messages can be changed frequently) As of 2007, 700 such billboards in the US – expected to increase to 4000 by

6 Buying Out-of-Home Advertising Purchased through companies that own billboards, called plants e.g. Clear Channel Outdoor; Viacom Outdoor Plants sell space in terms of showings –Showings are percent of population exposed –#25: 25% of population exposed Recently, GRPs (gross rating points) are used - % of population in a market reached at least once.

7 Outdoor Advertising’s Broad reach and high frequency Geographic flexibility Low cost per thousand ($0.85 & $1.78 as opposed to $9.62 for a full page color magazine ad) Prominent brand identification Opportune purchase reminder Demographic Non- selectivity Short exposure time Environmental concerns

8 Measuring OOH Audience Size and Characteristics The size of the audience to be reached when using these media – Traffic Audit Bureau – How many people pass by a billboard site. Audience characteristics not measurable Nielsen Media Research – Npods (Nielsen Personal Outdoor Devices) & GPS systems

9 On-Premise Business Signage Considered the most cost-effective and efficient form of communication available to retail businesses.

10 Types of Signs: Free-Standing

11 Types of Signs: Free Standing

12 Types of Signs: Building-Mounted

13 Types of Signs: Building-Mounted

14 ABC’s of On-Premise Signs ttract New Customers rand the retail site in consumers’ minds reate impulse purchases Conspicuity: the ability of a sign to capture attention.

15 Point-of-Purchase Advertising Point-of-purchase;store environment A final opportunity to affect consumer behavior Many product-and-brand choice decisions are made at this time “Shoppers are explorers. They are on a safari, hunting for bargains, new products and different items to add excitement to their everyday lives…”

POP materials Signs, mobiles, plaques, banners, shelf ads, mechanical mannequins, lights, mirrors, plastic reproductions of products, product displays, wall posters, floor ads, in-store radio and TV, instore-billboards, etc. etc. 16

17 The Spectrum of P-O-P Materials Permanent displays Temporary and Semipermanent displays In-Store Media displays intended for six months or more

18 Point-of-Purchase Materials Permanent P-O-P Temporary and Semipermanent P-O-P In-Store Media displays intended for six months or more displays intended for fewer than six months

19 Point-of-Purchase Materials Permanent P-O-P Temporary and Semipermanent P-O-P In-Store Media displays intended for six months or more displays intended for fewer than six months executed by a third party (P-O-P radio, shopping cart ads, shelf talkers, coupon dispensers, etc..)

20 P-O-P’s Influence on Consumer Behavior Informing –Motion displays vs. static displays –S.B. Thomas’ English muffin Two groups of 40 stores matched on store volume and customer demographics Motion display group recorded more than twice the sales of static display group Reminding –Encoding specificity principle – recall is enhanced when context during recall is the same or similar to the context when the message was encoded. Encouraging to buy (sometimes on impulse)

Motion displays Attract attention Direct attention to brand name Encoding specificity principle activates brand information previously seen/heard in media advertising Recalled brand information supplies a reason to buy 21

POPAI consumer buying habits study Confirms that in-store media, signage and displays heavily influence consumer buying decisions 4200 consumers interviewed at Bradlees, Target, Walmart and Kmart in 14 major US markets Entry and exit interviews 22

POPAI study Four categories of purchases –Those who specified a brand and bought only that brand (specifically planned) –Those who specified the product category and bought a brand from that category (generally planned) –Those who specified a brand but bought another brand (substitute) –Those who did not specify a brand / product category and bought a brand (unplanned) 23

24 Results from the POPAI Consumer Buying Habits Study

25 Product Categories With the 5 Highest and 5 Lowest In-store Decision Rates: Supermarket

26 Product Categories With the 5 Highest and 5 Lowest In-store Decision Rates: Mass Merchandise

Factors affecting in-store decision making Unplanned purchasing is higher when –Major shopping trip –Larger household size –Deal-prone Retailers want consumers to stay in stores longer –Frequently bought items like milk, eggs, etc. at the back of the store 27

28 The Brand Lift Index Indicates how P-O-P materials affect the likelihood that customers will buy a product they had not specifically planned to buy. Increase in in-store purchase decisions when a POP is present vs. when it is not.

29 Supermarket and Mass Merchandise Product Categories with Highest Average Brand Lifts from Displays

Display Information for POPAI/Kmart/P&G Study POPAI, P&G and Kmart 6 product categories – paper towels, shampoo, toothpaste, deodorant, coffee and fabric softener P&G brands sold at regular price for 4 weeks Three groups of 25 Kmart stores each – –Control – brands in their normal shelf position – no display or other advertising –Test group 1 – advertised brands on display –Test group 2 – different display and/or in a different location in store 30

31 Display Information for POPAI/Kmart/P&G Study

The POPAI/Warner-Lambert Benylin Study Drugstores in Canada – Toronto, Montreal and Vancouver Benylin cough syrup and Listerine mouthwash Four groups of stores – one control and 3 experimental Experiment over 2 weeks 32

33 The POPAI/Warner-Lambert Benylin Study Regular Price Benylin Normal Shelf Space Normal Shelf Position- Feature Price Feature Price on Endcap Display 98% Sales Increase In-aisle floorstand displays of Benylin at a feature price 139% Sales Increase 29% Sales Increase

34 The POPAI/Warner-Lambert Listerine Study Regular Price Listerine Normal Shelf Space Normal Shelf Position- Feature Price Feature Price on Rear Endcap Display 141% Sales Increase Front Endcap displays of Listerine at a feature price 162% Sales Increase 11% Sales Increase

35 Reasons Why P-O-P Materials Go Unused There is no incentive for the retailer because the materials are poorly designed and don’t meet their needs. Some displays take up too much space for the amount of sales generated. Some materials are too unwieldy, difficult to set up, or flimsy. They lack eye appeal. Sales may transfer from one brand to another but not increase retailers’ overall sales and profits.

36 Persuading Retailers to Use P-O-P Materials P-O-P must satisfy the retailer’s need and the needs of the consumer –Right size and format –Fit the store décor –User friendly –Sent to stores when they are needed –Properly coordinated with other marketing communications program –Attractive, convenient, and useful for consumers