What is In-store Advertising?
In-store advertising, or in-store marketing, is the act of advertising to customers or prospective customers whilst they are inside a brick and mortar business. It most often promotes products to customers when they are at point of purchase and are, therefore, most engaged in the buying process.
In-store advertising encompasses everything from simple point of sale print advertising to digital displays that streamline the buyer’s journey from online to offline. In-store digital advertising is the term used for the displays that show advertising content. However, these days advancements in technology have meant that these digital displays are able to do much more. As a result of new real-time insights into consumer behavior in-store, the world of in-store advertising now operates much like online advertising does.
Everything you need to know about In-store Advertising
Digital in-store advertising is an invaluable way for businesses with brick and mortar stores to keep their sales conversions consistent. When carried out well, in-store advertising can even be more effective than online advertising. According to recent research, over 70% of consumers feel that advertising on digital screens stands out more than online advertising. This makes sense when you consider ad fatigue, which happens when an audience has seen an online ad so frequently that they stop engaging with it.
Advancements in digital display methods and technologies bring with them not only advanced insights and performance data similar to what is available online but also increased sales and higher customer satisfaction. A strong in-store advertising strategy will allow retailers to connect on a deeper level with their audiences in retail stores as well as through various digital touchpoints.
What are the advantages of In-store Advertising?
In-store advertising allows for targeted ad content
In order to optimize the store experience, retailers can serve targeted and personalised ad content to increase sales conversions by showing consumers exactly what they want to see. By using age and gender recognition software and collecting audience insights in real-time, the ad content can be changed on the fly to best fit its viewer’s profiles. The ability to enrich the shopping experience with digital content is a large part of why digital place-based advertising has been able to increase sales volumes by up to 31.8% in recent years.
Retailers can use In-store signage, placed at the point of purchase to show products for the purpose of up-selling. This is the stage in which over 60% of American buyers make purchase decisions. Whether the screen displays information about new products, special offers or a relevant cross-promotion, each customer is being shown content that might influence them to impulse buy and at the right time.
In-store advertising personalizes store experience
Digital signage has been shown to have 47.7% effectiveness with regards to brand awareness and yet there are opportunities for retail stores to increase this even further. Customers like to feel seen by the stores they frequent; this is how they choose their favorite brands.
Through 1:1 interactive experiences on digital screens, such as smart mirrors in changing rooms or touch screen kiosks, customers experience a higher level of customer experience and personalization. Special deals and information can be also automatically displayed to the customer. Not only is this likely to increase sales, but it is yet another touch point in a connected customer journey.
In-store ad content is eye-catching
With stats showing that in-store digital advertising has a recall rate of over 83% it becomes clear that it is a truly powerful medium. Ad content is much more likely to stick in a user’s mind and consume their attention if it is displayed on a bright screen that they can’t avoid looking at. In contrast, consumers are very used to ignoring content on their phones and installing ad blockers to avoid ad content.
Is In-store Advertising more effective than outdoor ads?
When considering these benefits, it is clear that in-store advertising can provide a level of connection to consumers inside the store that outdoor ads can miss. Providing valuable and relevant content to shoppers while they are shopping is often likely to yield better results than marketing to them in a way that disrupts their every-day tasks. The ability for brands to connect and increase sales cannot be understated here. However, the question of whether in-store advertising is more effective than outdoor ads is not as clear cut as this. Recent data shows only a 5% disparity in reported effectiveness between in-store and out of store ads.
There is a world of opportunity that exists in outdoor digital ads just as there is in any area of in-location digital ads. In particular, ads displayed on large digital billboards (e.g. Times Square) in busy public spaces are likely to attract a great amount of attention thanks to its high footfall traffic. On the other hand, placing a digital ad display for instance in a shopping center allows for a wide variety of interests to be met; ad content can change depending on who is looking at it, audience metrics such as demographics and viewing duration can be gathered in real-time and campaigns can be optimized on an ongoing basis. Both retailers and brands can benefit from these insights when evaluating the performance of the in-store digital network and effectiveness of marketing efforts.