The digital revolution – taking in store product advertising to the next level

With our economy slowing and people starting to tighten their belts, supermarkets and shopping centres are looking to new mediums in order to entice customers to purchase. While traditional mediums, such as print and TV, are still important advertising tools available to the retailer to drive consumers in store, having a prompt at the point of purchase can impact on the types of brand name products going into a customers shopping basket. As LCD and digital display technology is becoming more widely available and unit costs are falling, stores are starting to see the benefit of introducing this latest technology in store to help with point of sale promotion.

Digital advertising has become increasingly popular with the likes of estate agent windows and car dealerships as a method to promote their newer products and services to customers passing by. However it is the supermarkets and other national retailers that could potentially take advantage and manipulate this digital display technology to their financial gain. According to POPEI (Point of Purchase Advertising Institute), with over 70% of retail purchasing decisions being made in store, companies such as Makro have successfully trialled the use of digital displays at eye level as a means to inform customers and provide the necessary prompts. In the period of the test, there was a 95% increase of sales with over 90% of customers surveyed declaring their buying decision would either definitely or possibly be influenced by digital media in store.

With results like this there is an argument that the standard static shelf barkers which inform and promote product details to customers may soon be a thing of the past. The supermarket shelves of the future could well be overtaken with small LCD screens, surrounding products on shelf edges, pumping out multimedia and persuasive advertising messages that can be programmed to change at certain times in the day. Not only can the digital displays advertise and cross sell products, but they can also communicate product locations within a store as well as provide digital assistance to customers; all in a bid to inform and persuade customers as they shop. If merged with retail displays, then supermarkets can really promote their products efficiently and effectively.

The challenge for the retailer will be getting the right balance between persuasion and annoyance, especially if at every turn the shopper is being distracted by animated promotions. In extreme examples, a shopper could decide to shop elsewhere if they do not enjoy this new audio/visual retail experience. However, one supplier of digital display solutions hailed the technology as the best way of promoting products and content instore, but also warned that the placement of these promotional tools is critical, saying that stores need to remember on how customers browse and shop, stating that overhead displays may not have sufficient effect due to people’s tendency not to look up. Daniel Collins writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.

That being said, this technology may not be of benefit to everyone. Traditional promotional methods still have a key role for the independent retailer, as the cost and knowledge base needed to implement and run these digital displays is still quite high. Traditional print advertising still has its place in store and is far less intrusive. If done well, it can create an impact to rival that of a digital display. Digital displays are indeed the way forward for product advertising and promotion. However this does not mean that the traditional shop fittings and printed mediums are dead. Those stores that can find the perfect harmony between the traditional promotional techniques and these emerging technologies are destined for a successful future.