OUT OF HOME MEDIA
ARIZONA STATE UNIVERSITY
MKT 365 - ADVERTISING AND BEYOND: CUSTOMER-CENTRIC
BRAND DEVELOPMENT
WEEK 8
Introduction:
Many of the major advertising media come into the home. Television, radio,
newspapers, magazines, the Internet and social media can all be delivered to the home.
However, there are some types of media that are especially available outside the home -
commonly known as consumers who reach out to media while they are traveling, waiting,
shopping, or otherwise out of their homes. While you may think that outdoor promotions are
a thing of the past, the growing use of digital technology has created new opportunities for
consumers to reach out and get engaged. In addition, advertisers are capitalizing on creative
opportunities to create memorable outdoor messages.
23.1. OUTDOOR ADVERTISING:
Printed (or static) outdoor advertising consists of billboards, which can be changed
periodically, and permanent signs, such as for nearby motels or businesses. A standard-sized
billboard is called a 24-sheet or 30-sheet poster, because so many sheets of printed paper are
needed to cover it. These days, these signs can be covered with as little as six, or even three
sheets of paper, or one large sheet of printed plastic made of flexible polyethylene film.
Billboards that are smaller than the standard size are usually referred to as junior panels.
In the past, outdoor billboards were purchased by shopping, and although outdoor
advertising has moved to using rough rating points (GRPs), buying is still often referred to
as performing. Billboards are usually purchased in market areas, and once a year the average
circulation of cars, buses, trucks and pedestrians is measured for each billboard location.
This information helps formulate how many billboards are needed within a market zone to
reach a certain level of audience. In outdoor promotions, the standard buy is 100 GRPs over
a four-week period, which results in the audience level shown in exhibit 23.1. Other levels
of advertising (25 GRP, 50 GRP, 150 GRP, and so on) are available, but only as multiples of
the number of billboards used to achieve 100 GRP; there is no guarantee that a billboard
purchase of 200 GRP will achieve twice the audience impact as 100 GRP - only that you
will use twice as many billboards. Billboards near shopping centers can also be purchased
through shopping center chains.
Of course, there are outdoor advertising signs that are not billboards. Paint bullets
stay up for several months, sometimes years. Advertisers might also paint the entire side of a
building wall with a message, or build three-dimensional structures attached to the building
to enhance the message. For example, when Chevrolet introduced the Volt electric wagon,
the company created a poster as high as
On the wall adjacent to the poster, the company installed a two-story-high structure
depicting an electrical outlet, and a power cord ran from the poster to the outlet. Spectacular
signs like the one in Times Square in New York City are another special type of outdoor
promotion. LED and digital billboards allow messages to be changed quickly and are much
more visible and attractive. Some of these boards even provide an interactive experience.
Locations for billboards and other outdoor advertising must be purchased or rented,
and there are several national banks that have billboards available throughout the United
States.
23.2. OTHER OUTDOOR SIGNS:
Many stores put up signs outside their premises to attract customers. These signs are
usually not considered outdoor advertising because they are on the establishment's property
and are not considered part of the overall advertising campaign plan. Some companies,
particularly soft drink and beer vendors, offer free or discounted signs to small businesses
with a portion of the sign space devoted to that business and the rest of the space used to
promote beverages. Today, many signs are displayed inside businesses. These are discussed
in chapter 26 on in-store media.
23.3. TRANSIT ADVERTISING:
Transit advertising makes use of transit vehicles, as well as Transit stations. Inside
buses, subways, and commuter trains, the boards above the windows are called car cards.
They are usually 11 inches high, although signs above doors should be shorter, and vary in
width. The outside of the bus can be displayed on the side of the vehicle as well as the front
and rear posters. Buses can also be wrapped in high-quality vinyl products that turn the
entire bus into an advertising message. Posters inside train stations or Railway stations and
airline terminals can vary greatly, depending on the exact location, the need for lighting, and
pedestrian traffic patterns.
Transit advertising is similar to outdoor advertising, sold by the show, or run. A full
ticket or full run has one car card in every vehicle in the transportation system; a half show
or half run will allow for one car card in every other vehicle. Since passengers usually stay
in one car and often in one seat, double showings (double runs) and triple showings (triple
runs) are common, so there are two or three or even more car cards in each vehicle.
Signs on the exterior of a taxi are usually displayed on the rear trunk or perhaps on
the roof of the taxi. Trucks may also carry advertisements, with some trucking companies
offering vehicles with lighted signs for nighttime viewing.
Transit ads offer a large audience with an approximate cross-section of the area's
population. Since people can move around, the chance of recontact with an ad is very likely.
A. Other Digital Out-of-Home Media:
Like so many other types of media, out-of-home media cannot be simply divided
into neat categories because there is some overlap. Digital out-of-home media overlaps with
outdoor advertising as well as with signs. Digital Media refers to ads that move or change,
such as video screens, and is sometimes referred to as dynamic media.
Such evidence may be held in stores, sports arenas, shopping centers and restaurants,
along roads, and in similar public places. Sometimes kiosks and accessible locations are
used for interactive video screens that can be experienced.
B. Other Out-of-Home Media:
By some estimates, there are more than 100 types of media that are out-of-home
formats. These include things like skywriting or banners towed by planes, car billboards,
benches and other street furniture, signs at gas stations and at rest areas, as well as
walscapes, which are very large signs on buildings. More and more types of out-of-home
media are being developed, which can offer better audience selection and higher cost
efficiency.
Many of these new types utilize interactivity. For example, some digital offerings
use touchscreen technology or combine mobile and social activation technologies such as
QR codes. For example, a poster at a bus station could contain a QR code that connects a
passenger to a mobile app such as a clothing store or newsstand. Using outdoor media to
capture consumers while waiting for something may be the next "killer app".
SEARCH ENGINE MARKETING:
Search engine marketing (SEM) is a media placement tactic that promotes clients'
websites by increasing their visibility on search engine results pages (SERPs). Search
engines have been around since the early days of the Internet, even before the worldwide
Internet, to help people use keywords to find what they need. Once web browsers were
invented, search engines turned into graphical interfaces. SEM can be a valuable part of a
media plan, as a wide variety of advertisers can benefit from direct communication with
consumers, whether the consumer has an acute need that a brand can solve, needs
information for a highly engaged purchasing decision, or is looking for a great deal.
At the center of search engine marketing, the main player is Google, which generates
about two-thirds of online searches. The website Alexa estimates that Google has more than
one billion unique visitors per month. Search engines ms, Bing, and Yahoo each generate
about a quarter of Google's traffic. Google reported that in 2013, the organization had an
average of 5.9 billion searches per day. In 2012, Google generated more than $50 billion in
revenue, mostly from search engine sales.
24.1. SEM BASICS:
The discipline of search engine marketing includes paid search results and organic
search results. Paid advertising is completed using tools such as Google Ad word or Bing
ads with various formats, placements, and payment structures. Organic search, also known
as search engine optimization (SEO), is often thought of as unpaid advertising. SEO is often
successful by ensuring that the text on a page or site matches the type of search people are
doing. In addition, SEO considers the number of links on the site and also where users to the
site come from, as well as other types of behavior displayed by consumers.
The concept behind SEM is simple: people go to sites like Google and enter search
words to find sites online that can provide them with the information they need. Technology
allows search engines to continuously "crawl" through the Internet and index sites. Indexing
sites means identifying keywords that will describe the site. SERPs, then, connect people
looking for information with pages that are most likely to provide the information they need.
In addition, the Serbian language provides paid placement from companies that have
purchased keywords that match the user's needs. Search engines use proprietary algorithms
to make these matches and are constantly updating and refining the algorithms to make the
best matches.
This consumer mindset is somewhat unique from other types of consumer behavior
as it indicates that the person is actively seeking information. If consumers are actively
searching for product or service information, they are most likely in the buying cycle, so
they have a good prospect of buying a particular brand. Providing branded information on
SERPs differs from other types of advertising messages in several ways:
⚫
This is less intrusive, as it reaches out to individuals when they are actively seeking
information
⚫
It stems from voluntary search, which is driven by a consumer's will, where the consumer
selects a specific link to respond to.
⚫
This comes from a fixed search history-search engine technology minimizes the likelihood
that consumers will get inferior search results.
SEM Planning:
Advertisers most often use the following types of SEM:
⚫
Paid Placement. Advertisers buy specific keywords and if these keywords match the user's
search, they will be displayed on top of the SERP. This may be at the top of the SERP or in
a box along its side.
⚫
Directory inclusion payment. Advertisers pay a fee to search engines to be included in a
search engine or directory, guaranteeing that the brand's site will be included in the SERPs.
Some sites are developed using technologies that are difficult for search engines to "crawl,"
and having paid inclusion helps their brand appear in the SERPs.
Choosing the right keywords can be a challenging aspect of media planning, and
Google now provides some important tools to help in that area. A good place to start is
Google Trends (www.google.com/trends/). The Google Trends webpage provides up-to-date
information that is currently trending. It also contains at-a-glance popularity of search terms,
including a tool where search terms can be entered to check interest over time, regional
interest, and popularity of related searches. This information is quickly available to anyone
via the webpage.
Google's keyword organizer allows you to find keywords for new campaigns that
have never been used in search engine marketing in the past. In addition, the keyword
agenda can help you expand your list of keywords for ongoing campaigns. Performance
metrics about different keywords are also available, so you can assess which ones are
particularly popular (and possibly more expensive), as well as which ones might be long tail
keywords - meaning they don't have a high search volume, but might be more likely to lead
to clicks and conversations. The keyword builder also offers help on top of the goals; for
example, you can find keywords that appeal to people who live in Chicago and speak
French, if that's what you're looking for. Keyword Planner is available to anyone with a free
Google Adwords account. Most search engines have rules that advertisers must follow
regarding keyword bids and the content of landing pages (branded sites where consumers
will pick up). Specifically, keywords and landing pages must be well matched to ensure a
good consumer experience. If a company selling pet supplies uses the keywords "hot girls"
or "boy toys" to show people on their website - you can see how disappointed consumers
will be. However, many companies try to do this, and search engines are well aware of this
technique and put a stop to it.
Pricing for paid placements differs from other types of media placements. Sites tend
to use the bidding method as opposed to the negotiation method that many media planners
are familiar with. The bidding process assumes that many advertisers want to reach the same
group of people (for example, new car buyers). Advertisers will then bid on how much they
want to pay to reach those buyers. With search engine marketing, the higher an advertiser
bids on a keyword, the higher the ranking the ad appears, and the more likely it is that web
searchers will see that ad. Rank means visibility, although you don't have to be at the top of
the rankings or make the highest bid for prospects to see your ad and click on it. Your goal
is to get the lowest cost-per-click and the highest quality clicks (sales and leads) for your
budget.
To add to the complexity of SEM, there are different types of pricing structures that
advertisers can use for their bids. One popular type is the aforementioned cost-per-click
(CPC), where ad payments are only applicable if the brand link is clicked. Other advertisers
are more comfortable using cost-per-thousand (CPM), where advertisers pay for each ad
exposure, even if it is not clicked.
24.2. LOCAL SEARCH:
Search engine marketing is not just for large national and global clients. It targets
local marketing and shows ad listings based on the physical (or geographic) location of the
brand. It is the digital equivalent of the Yellow Pages, which was the original medium for
local search. In 1996, bellselatan created the online local search marketing when they
unpacked the first online directory. Eventually this would inspire a whole host of other
companies to create many great local search services available online for potential
advertisers. Today, there are many local search services online for any potential advertiser to
choose from. Some of the more popular local search services are Google Maps (Google+
local), Yahoo! Local, Bing maps, YP.com (Yellow Pages), Superpages, and Citysearch.
24.3. TESTING:
Given that advertisers can burn through their advertising budget in an instant, it is
important for media planners to constantly test and assess different keyword combinations in
order to manage traffic efficiently. For example, an offer of $1,000 per click will generate a
lot of clicks, but it will also cost a lot of money. SEM involves understanding the fine line
between bids that reach a lot of people and bids that generate ads that have never been seen.
Therefore, testing different bids and keywords - using a very small budget initially -
provides data to help planners make important SEM decisions.
DISPLAY ADS ON THE INTERNET
The Internet is an integral part of most Americans' lives. According to the Internet
World stat site, about 78 percent of Americans are connected to the Internet on average for
about nine hours a day, with about a third of that time spent using social media and texting.
This usage is particularly consistent for children and adults: adults use the Internet at home
and at work, and children use it both at home and at school. In addition, the increasing use of
smartphones allows the Internet to be accessed from almost any available signal.
25.1. ADVERTISING AND ONLINE BEHAVIOR:
Many people spend time on the internet doing directed activities - looking for
information about news, current events and things that interest them (including products and
services). Internet users encounter advertising throughout these activities: search engines
like search results and include digital ads in the result sheets. Advertising also comes into
play when people use the Internet for social reasons or for entertainment. Ads appear on
social networks and online games, which provide revenue for the companies that provide the
content.
The main purpose of most digital ads is to direct people to online sites that are of
interest and value to them. Some digital ads access branded sites and storefronts (also known
as e-tail sites), where people can purchase items or learn more about the products they are
thinking of buying. Other digital ads direct people to websites where they find information
and, in some situations, pay for additional content. Still, other ads may point people to
competitive products, or to rating services that provide consumer opinions on products and
categories.
There are many digital advertising options and creative units, and finding a mix that
efficiently builds reach and frequency against a specific target can be difficult. Millions of
different websites accept ads, and "sticky" network sites (sites that are visited for a while
and don't rush to other websites) can be difficult. Finally, the different types of speed options
can be confusing to some clients (and frankly to some agencies, too). Should you run ads on
site-based and impression-based or cliche-based? Or should you submit a campaign and see
what happens? There is no right or wrong answer, but the information in this chapter should
help you understand more about the complicated world of digital advertising.
Digital advertising usage has increased significantly since 2000. Categories that
represent the highest levels of ad spending include financial services, telecommunications,
and automotive. Business and business advertising is also on the rise.
Display and banner ads insert advertisements into web pages. These ads may include
text and images and, like SEM, attract traffic to the advertiser's website through a link.
Generally, online users need to click somewhere in the ad to be redirected. Audience
response is usually measured by exposure and clicks. Rich media ads provide users with an
interactive online experience. For example, some ads expand and provide new context
online when users click or scroll through the ad. Other examples of rich media include video
ads or embedded ads that appear to "spread" across the page itself.
Such ads are likely to be more attention-grabbing than static ads (such as banner ads)
and often do not force users to leave the site they are currently visiting. Depending on the
ad, different types of audience behavior may be tracked (e.g., the amount of time spent
watching a video).
Most of these types of online ads are placed through ad content networks. These are
companies that connect advertisers to websites that want to host ads. The main function of
an ad network is to collect ad space from online publishers and match it with advertiser
requests. There are three types of online ad networks.
1. Vertical Network:
Vertical networks clearly identify which sites are part of the network, and advertisers
always know exactly where their ads will run. These types of networks are priced slightly
higher than other networks. The main reason is that they promote high-quality traffic at
market prices and are widely used by brand marketers. In general, vertical networks offer
two types of media placement: run-of-site (ROS) ads in specific channels (auto or travel, for
example) and sit-down ads on a website.
2. Sheath Tissue:
Covert networks offer lower costs than vertical networks but do not provide
information about which ads will be used before the flight; therefore, media planners are
"blind" to the content of the ads. Most networks offer an "opt-out site" method that allows
certain categories or sites to be excluded. Networks typically campaign on a run-of-network
(RON) basis, across the different sites that are part of the network. Blind networks achieve
low prices through bulk buying usually of leftover space.
3. Targeted Network:
Targeted networks are referred to as next-generation targets. This type of content
network focuses on specific targeting technologies such as search-based, contextual, or
behavioral targeting. Targeted networks specialize in using user click data to increase the
value of the inventory they buy. As in traditional media planning, the planner must carefully
identify the primary audience for the digital advertising campaign. To make this decision,
planners decide whether to use search-based targeting, contextual targeting, or behavioral
targeting.
Search-based targeting comes from search engine marketing (SEM, already
discussed). Conducting online searches is a popular activity, and most online users are
familiar with this type of advertising. For that reason, search advertising continues to soar in
popularity. Contextual targeting provides users with ads on subjects that are of particular
interest to them. Instead of basing ads on what customers are searching for, ads contextually
look at the content customers see as they navigate through the Internet. To market to
consumers, true contextual advertising relies on the relationship between online advertisers
and web publishers. High levels of relevance content advertising promises the potential for
higher through rates and increased sales and profitability
Consumer Response to Digital Advertising:
Behavioral targeting monitors the behavior of individuals as they move from place to
place. Then, ads are created that correlate with this behavior. For example, when using
behavioral targeting, online shoe store Zappos can identify users who visit their website.
Then, when the user visits other sites that are part of a network where Zappos has purchased
ad space, that potential customer will see an ad that persuades them to buy shoes through
Zappos. Behavioral finders allow advertisers to entice consumers with different ads based on
their past behavior, even with different consumers viewing the same web page; while one
consumer may see an ad for Zappos, another may see an ad for Nordstrom's. The downside
is that behavioral targeting has been perceived by many as invasive. Consumers express
concerns about tracking and using their browsing habits.
25.2. MEASUREMENT:
Online user measurement involves a fairly large sample as well as passive
technology. Participants in the data collection have specialized software integrated into their
own computers and data is collected every time participants use their computers. The data is
transmitted daily to the measurement service. The two main services are
Nielsen//NetRatings and comScore. Nielsen//NetRatings is a division of the same company
that does television ratings. As of 2013, Nielsen has a ratings service that will monitor
online viewing of digital media, which is a blend of their online and traditional television
metrics. The company's newer Komskor focuses on all types of digital measurement,
including search engine optimization and mobile marketing.
Many websites track their own statistics using systems such as Google analytics,
which make daily visits to the site, identify the visitor's country of origin, and determine
whether the visitor is new or returning (based on IP [Internet protocol] address). These
analytics programs can also show the amount of time users spend on the various pages that
make up the site. However, in-depth demographic information is generally not available, and
as a result, media planners may use a variety of data sources to evaluate web properties.
25.3. PLANNING DECISIONS:
In addition to making decisions about goals, the planner should be involved in two
other key decisions: the creative ad format and the payment method. Questions about the
creative format of the ad include, will the ad be just a variety of images, or a rich medium?
Will it be placed in an environment that will most likely be seen on a computer, on an iPad,
or on a smartphone? Does the ad need to be adapted for different devices? Questions
regarding payment methods include, will budget decisions be made based on an assessment
(cost-per-thousand, or CPM), or based on bidding (cost-per-click, or CPC)? Digital
advertising revenue is generated from CPM (image-based) and performance (CPC)
measures. Negotiated CPM advertising is the same as other types of advertising: the planner
or buyer estimates the number of impressions that the ad will generate against their target
and a cost is assigned to the impression. With negotiated CPC, the advertiser will only pay
for people who click on the ad. For example, one ad could cost 40 cents per CPM or $2 on a
CPC basis (table 252). In this case, the advertiser will set a daily budget and once the goal is
reached, the ad will stop running for the day.
25.4. MIGRATION FROM OFFLINE TO ONLINE:
Digital Advertising is often part of the traditional migration of mediums from Offline
to Online, as various media channels recognize that most of their audience spends their daily
media time on the Internet. Traditional media has dealt with this in various ways.
25.5. DIGITAL FUTURE:
You may have heard that big data is revolutionizing business. Big data is a collection
of data that is so large that it is difficult to process and understand using traditional tools.
The trend towards larger data sets is shaped by media user habits that allow companies to
collect a wide array of information; further, this information allows researchers to see trends
and patterns among different types of activities. Couple this with a huge increase in
advertising channels and the result is that advertisers can better understand the patterns of
shoppers - where they shop, how much they spend, what they need in their lives, where they
spend time, and what they do in the digital space. Big data can help advertisers hone in on
targets in ways never imagined before.
Wired magazine predicts that most Internet activity will shift to the use of apps,
computer software designed to help users do a single or a few specific, related things.
Marketers are creating branded apps for computers, smart phones and tablets. Apps have
been developed by restaurant chains that allow users to find restaurants (with maps) in a
city.
anywhere. Sunglass brand Oakley has a customizable "Surf Report" app, providing value to
its main target. Sherwin-Williams paint allows users to take photos of the colors they love
and receive recommendations on the best paint matches. AAMCO has transmission
problems.
Many online and computer games now include advertising in the game content, and
this use is expected to increase. Advertisements can be static (programmed into the game
content) or dynamic (advertisements specific to individuals, who must play the game online
or connect to the Internet through the game system).
A new technology called Augmented Reality adds digital imagery to real-time media
content. For example, during some soccer match broadcasts in the UK, advertisers' brands
are digitally embedded into the soccer field and rotated regularly. Esquire magazine has
experimented with augmented reality by allowing subscribers to download software and
hold up the magazine to a computer webcam to access additional content from Esquire's
website.
Finally, pricing is changing in several ways. First is the change from CPM and CPC
pricing to engagement pricing, which is based on delivered attention rather than impressions
and pay per click. In this model, a brand provides a number of branded experiences on a
website (such as a sponsored game) and pays for the amount of time a person spends on
those experiences. Next is real-time bidding (RTB), a type of automated ad placement
buying. The key idea behind tb is that ad impressions should not be sold in bulk; rather, each
ad impression is considered unique, and advertisers know the best prospects for their
messages. The media planner provides a set of demographic and psychographic parameters
for one of the many digital trading desks, along with an offer for an exposure for someone
who meets the parameters. When someone who matches the parameters visits a website that
is part of the ad network, the advertiser with the highest bid will show their message to the
individual.
The digital world is constantly changing, and the best brand and media planners
devote a little time every day to keep up with these changes and leverage new opportunities
for their clients.
IN-STORE MEDIA
In grocery stores across the country, shoppers see branded messages from the
moment they park their car until they complete their purchase at the checkout counter. And
it's not just in grocery stores: Walmart, Target, Best Buy, and other big box merchants are
now embracing in-store advertising. These messages are valuable because they reach
consumers almost at the point of purchase. According to research from Cisco Systems, about
75 percent of brand choices are made in stores. For example, a shopper may have a list with
"butter" written on it, but she may not decide on a particular brand of butter to buy until she
is in the store. In-store advertising can also drive direct purchase - an unplanned purchase
stimulated by seeing a brand (or brand advertisement) in the store.
Another benefit of in-store media is that consumers often buy on impulse, and some
estimates suggest that about half of total grocery purchases are used to purchase items that
the consumer did not intend to buy. Younger consumers, in particular, respond to in-store
marketing. A study found that they are more willing to consider and purchase brands that
they learn about through in-store marketing.
Given the amount of decision-making that goes on in a store, it's no wonder that
advertisers are looking to get their message in front of consumers as they make these
decisions. From the humble "shelf talker" (a small sign on the shelf that directs shoppers to
products) to digital opportunities, in-store advertising has become a key element of many
media plans. In addition, individual stores advertise loyalty programs to ensure that their
stores are the most visited by customers.
Consumers now shop across channels, which means they seamlessly move from in-
store to online. The increase in smartphone penetration allows consumers to research
products, access mobile coupons, and sometimes even pay for their purchases over the
phone. A recent survey shows that retailers' websites and other online channels rival
physical stores as the main channel for marketing. As such, In-store media will be discussed
for both the physical and digital shopping worlds.
26.1. MESSAGE TYPE:
The three broad categories of in-store advertising are mass messaging, personal
messaging, and loyalty programs. Mass-deployed messages present the same information to
all customers, while personalized messages provide an interactive experience where
consumers can obtain information suitable for individual purchasing decisions. On average,
about 10 percent of the US advertising budget is spent on in-store media. In-store
advertising space is managed by many different companies, most with specialization in one
or two types of messages.
Masses In-Store/Online Order:
In-store signs promote a single product (such as Kraft Miracle Whip) or a group of
products from the same manufacturer (such as Lemongrass Post). These messages are placed
in the aisles close to the product promotion, providing a persuasive message ahead of the
purchase decision. In this category are:
⚫
Shelf Talkers: small signs that direct customers to products on the shelves.
⚫
Banners: larger vertical signs that cover two or three shelves
⚫
Floor sign: a large graphic placed on the floor of an aisle to direct customers to products on
lower shelves. Today, you might even catch 3-D images on the grocery floor: a soda or
snack that appears to be placed on the floor, or an airplane ready to take off.
Advertisements about shopping carts used by consumers as they shop to give
messages to the carts. The advertisements were shown to shoppers carrying the carts as well
as to other shoppers wandering through the store. This includes:
⚫
Small markings on the child seat of the cart
⚫
Bigger advertisement on the side of the cart
⚫
Complete wrap of the cart in advertising
⚫
Shopping list with coupons
Video Advertising provides messages on large screens near exit aisles or at other key
locations in the store. The screens display content from cable channels such as the food,
Discovery, Entertainment tonight, and inside editions, and the content is updated regularly.
Advertising is embedded into the programming. While screens near the checkout receive
higher attention, screens throughout the store may be more influential in purchases.
Walmart's smart TV network gives advertisers the opportunity to deliver television messages
to their respective regions of Walmart stores. The network now generates more reach than
ABC, CBS, and NBC combined.
Website and app stores for tablets and mobile devices provide a great opportunity for
brands. Store websites feature digital sales events and special offers for online shoppers.
Apps for tablets and mobile devices allow consumers to review products online and get in-
store discounts by checking in through location-based services such as Foursquare.
Integration of social media platforms along the lines of Facebook allows consumers to share
ideas with friends and earn social media coupons.
26.2. IN-STORE PRIVATE MESSAGING:
1) Digitar Out-of-Home:
Digital Advertising from home provides targeted messages at specific locations in
stores at specific times. For example, prepared meals can be advertised in grocery stores
after 5pm to attract after-work shoppers. Digital signs also allow a store to sell advertising to
other businesses (for example, a grocery store can sell Digital signs to local laundries and
local liquor stores, which change throughout the day). Newer types of digital advertising
include interactive displays on walls and floors that use motion control technology. This
allows the images to change as shoppers wave their hands or move their bodies in other
ways near the display. Coors beer, for example, projects life-sized foosball-like games onto
the floors of grocery stores, and shoppers can play foosball games by moving their feet near
the projections. The foosball table features the Coors logo.
2) Interactive Kiosk:
Interactive kiosks are stand-alone structures that allow consumers to access product
information, recipes, and coupons. Kiosks can be placed near the store front or promoted
departments to maximize customer exposure. Kiosk types include:
⚫
Leaflets that provide nutrition and recipes for customers, often including shopping lists and
event planning ideas to cross-promote products.
⚫
Shelf coupons, a small device attached to the shelf near a product, allows a customer to
obtain a coupon for that product to use at the checkout.
⚫
Self-gift cards, credit card-based tools to send gift cards to customers, freeing up sales
associates for other tasks.
Intel has introduced a magic mirror device that uses avatars to show how consumers
will look in their clothes considering purchase without having to visit the dressing room.
Interactive kiosks are being combined with social media to provide a more personalized
experience. For example, Maybelline is testing a touchscreen kiosk in New York that is
Facebook-enabled so that users can share their latest looks with their friends.
3) Register Coupon:
Personalized list coupons are based on a person's purchase. Checkout terminals can
be programmed to print price coupons on customer list receipts. This coupon could be for
the purchase of a recently purchased product or for a competitor's product. For example, a
purchase of Iams dog food can result in a coupon for Kal Kan dog food. Couponing has
embraced the digital world. Social media coupons and mobile coupons offer consumers the
ability to utilize coupons relevant to them by simply entering their shopping list. Major
retailers like Kroger have their own coupon apps that allow consumers to steal their
smartphones at the register to get the latest manufacturer discounts.
4) Loyalty Program:
Loyalty programs encourage loyal buying behavior by rewarding customers for their
purchases. Loyalty programs issue a membership card - sometimes called a rewards card,
points card, or club card - to an individual shopper. The card usually has a bar code or
magnetic strip that can be scanned easily to track a person's purchases. After a certain
number of purchases (say, 10 cups of coffee) or a certain number of dollars spent on a
purchase ($200 worth of books at a bookstore), the shopper receives a reward - a free
product, discount, or other benefit for future purchases. To join a loyalty program, a
customer provides a certain level of demographic information, which is then compared to
their mapping, enabling the collection of data that can be used to make marketing decisions.
For example, a store uses frequent shopper data to program handheld scanners that shoppers
carry on their shopping trips, accessing special deals and promotions targeted just for them.
Loyalty programs have rapidly evolved into the digital arena. The goal of digital
loyalty programs is to allocate loyalty programs to customers' favorite stores. One way
retailers are doing this is through social media. For example, Walmart and Sears partnered
with Facebook to allow customers to interact with their local stores and get personalized
local store messages. Sears took this aspect of loyalty one step further by adding GPS
technology to the mix. Now, when shoppers check in at a particular store via smartphone,
local store associates know they have arrived, can locate them, and then direct them to items
saved on their digital shopping list. By signing up, special discounts appear on the items
stored on their smartphone.
26.3. MEASUREMENT:
In-store media measurement includes assessing both exposure to messages and
reactions to messages. Three types of measurement can assess customer activity and thus
measure exposure:
⚫
Traffic counters measure the actual number of people entering the store. This can be done
through technology such as laser beams at the store entrance. The number can then help
generate the potential "reach" of vehicles within the store, given that reach is defined as the
chance of seeing an advertisement within a certain period of time.
⚫
Video recognition systems such as wall-mounted cameras count the number of people who
walk past a spot in the store (generally the location of an advertisement that is in the store).
This type of system can also track whether customers stop to look at the message, and for
how long, and can generate a total exposure, or impression, for a particular media vehicle
over a period of time.
⚫
Ceiling-based cameras can assign a unique numerical ID to each customer entering the store
and track the movement of each customer through the store, creating a log of customer
activity and advertising exposure.
Data provided by the Advertising Institute's Point of Purchase allows reach and
frequency to be calculated. The average supermarket in the United States holds
6,000 shopping trips per week, and there are 1.25 people shopping on average. Therefore,
the average opening of in-store signs per week is 7,500. The average household store is 1.5
times per week, and the number of unique visitors to the supermarket is 5,000 per week,
with an average frequency of 1.5.
Therefore, the average frequency for an in-store campaign can be calculated by
multiplying 1.5 times the number of weeks the campaign runs. Like gross rating points, in-
store rating points are calculated by multiplying by frequency. This can be used to compare
cost measures also on a CPP and CPM basis. Measurement of digital initiatives such as
websites or tablet or mobile devices can be calculated by the number of unique visitors to
each site and through engagement metrics regarding length and depth of visits. Transaction
information can be obtained from unique users as well.
26.4. THE FUTURE OF IN-STORE MEDIA:
Chances are you will see more personalization and less mass media in your local
store in the coming years. One example of this is technology such as shopping carts with
small computers attached to them. The computer has phone-style navigation buttons on the
handle and its own scanning feature for use at checkout.
GPS systems can direct you from home to the store, and now technology is enabling
"in-store" GPS. One supermarket chain launched a mobile phone application that provides a
database of store-wide offers, showing customers where shopping and customer service
kiosks are located and directing consumers to the supermarket's most attractive offers and
most interesting sale items. It also reminds customers where they parked. The app utilizes
multiple hotspot locations in each store, as GPS does not work indoors.
A lot of activity is centered on the idea of solom - the convergence of social media,
location-based services, and mobile devices. This combination is all about helping
consumers engage with brands regardless of channel. Retailers are working hard to make the
physical and digital experience as seamless as possible.
The innovation lab at international institute IPG has developed various new
technologies seen in the market. Among these is a device that turns the front window of a
store into a giant touchscreen. Designed for use in retail clothing boutiques, it allows
customers to interact with the screen to select outfits for virtual avatars rather than looking at
clothes on mannequins. A similar device developed by IPG is a mirror that allows a shopper
to scan a dress and then project the outfit onto her body before going to the dressing room.
Interactive screens allow shoppers to check out different colors of clothing and find
matching accessories. Images of the outfit can be posted on the shopper's Facebook page
Retailing has become less about the battle between bricks and mortar and online and
more about integrating channels into a single experience. With mobile devices as a constant
consumer companion, it is a matter of bringing that retail experience to consumers at home,
on the go and in the store.
The retail experience is becoming a battlefield, and savvy media planners will look
for interesting and novel ways to break through the stacks of show products in store aisles.
