On- and Off-Premise Signage and Point-of-Purchase Communications
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, 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.
Billboard Advertising • 400,000 billboards in the US • Designed with name recognition as the primary objective Two major forms: (1) Poster Panels (2) Painted Bulletins (3) Digital billboards
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 Panels Painted 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)
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.
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 Outdoor Advertising’s
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
Study Findings • Adams Outdoor and Cognetix Advtg. • Charleston area – achieved 75 showing at a four week cots of $25,000. • By week 3 • 67% indicated awareness • 77% had neutral to favorable attitudes • 85% indicated positive purchase intentions
On-Premise Business Signage • Considered the most cost-effective and efficient form of communication available to retail businesses.
ABC’s of On-Premise Signs A ttract New Customers rand the retail site in consumers’ minds reate impulse purchases B C Conspicuity: the ability of a sign to capture attention.
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…”
The Spectrum of P-O-P Materials displays intended for six months or more Permanent displays Temporary and Semipermanent displays In-Store Media
Illustration of a Floor Advertisement
Point-of-Purchase Displays Illustration of an Award-Winning Permanent Display
Point-of-Purchase Materials displays intended for six months or more Permanent P-O-P displays intended for fewer than six months Temporary and Semipermanent P-O-P In-Store Media
Point-of-Purchase Displays Illustration of an award-winning semipermanent display
Point-of-Purchase Displays Illustration of an award-winning temporary display
Point-of-Purchase Materials displays intended for six months or more Permanent P-O-P displays intended for fewer than six months Temporary and Semipermanent P-O-P executed by a third party (P-O-P radio, shopping cart ads, shelf talkers, coupon dispensers, etc..) In-Store Media
P-O-P’s Influence on Consumer Behavior • Informing • Motion displays vs. static displays • S.B. Thomas’ English muffin • 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
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
Product Categories With the 5 Highest and 5 Lowest In-store Decision Rates: Supermarket
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
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.
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
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
The POPAI/Warner-Lambert Benylin Study Regular Price Benylin Normal Shelf Space Normal Shelf Position-Feature Price 29% Sales Increase Feature Price on Endcap Display 98% Sales Increase In-aisle floorstand displays of Benylin at a feature price 139% Sales Increase
The POPAI/Warner-Lambert Listerine Study Regular Price Listerine Normal Shelf Space Normal Shelf Position-Feature Price 11% Sales Increase Feature Price on Rear Endcap Display 141% Sales Increase Front Endcap displays of Listerine at a feature price 162% Sales Increase
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.
Persuading Retailers to UseP-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