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Not Getting Enough Bang For Your Buck? Print E-mail


Why brand advertising dollars are moving in-store:

  

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Digital signage revenues are expected to grow from $102 million US in 2004 to $3.7 billion by 2011 (Frost & Sullivan)
Over next 3 years P&G will TRIPLE spending at POP (Stéphane Drouin, SVM, Fall 2006)

Recent polls, surveys and industry experts reflect the loss of influence advertising has had on point-of-purchase decision-making.

  • "In 1965, 80% of 18 to 49-year-olds in the U.S. could be reached with three 60 second TV spots. In 2002, it required 117 prime-time commercials to produce the same result."
    Jim Stengel, Global Marketing Officer, The Proctor & Gamble Company, AAAA Conference 2004
  • "60% of all in-store purchases are unplanned…Consumers simply don’t have time to ‘study’ ad messages… [Consumers] want relevant brand information when and where it is convenient for them."
    James Maskulka, Associate Prof., Lehigh University, BrandChannel.com, July 8, 2002
  • “4.7% of Canadians cite ads as a major influence on purchase decisions.”
    Strategy Magazine, “Ads Rarely Drive Purchases”, February 9, 2004

In-store marketing continues to grow as evidence indicates consumers want brand and product information when and where it is relevant to them - at shelf. Consumers are influenced by brand message and packaging design at point-of-purchase.

  • “13.9% of those corporations surveyed are pulling back media advertising budgets and moving increasingly toward other channels, including in-store marketing.”
    The Institute of Communications and Advertising Survey, May 2004
  • “Companies in the U.S. are expected to spend about $18.6 billion on in-store marketing and in-store ads this year [2005], up from $17.6 billion last year [2004].”
    Veronis Suhler, Stevenson Partners LLC
  • “P&G has cut its commitments to advertise on cable channels for the current season by 25% and its broadcast TV allotment is down by 5%. At the same time, overall ad spending rose slightly.”
    Veronis Suhler, Stevenson Partners LLC
  • “In response to the fragmentation of television and print ads, it [Proctor & Gamble] wants to tout its brands directly to consumers where they’re most likely to be influenced: the store.”
    Emily Nelson and Sarah Ellison, The Wall Street Journal, “In a Shift, Marketers Beef Up Ad Spending Inside Stores”, September 21, 2005.
  • “Last year [2004], 122 new products were launched on Wal-Mart TV.”
    Charlie Nooney, Chief Executive, PRN
  • “Traffic jumped 23% in those stores using digital signage compared to those stores that did not use the digital signage.”
    “The Power of Point of Purchase Advertising: Marketing at Retail”, study by Safeway, Unilever and the Point of Purchase Advertising Institute
  • “The combination of new merchandising layouts and P-O-P produced a 90% increase in the number of shoppers who interacted with the displays.”
    “The Power of Point of Purchase Advertising: Marketing at Retail”, study by Safeway, Unilever and the Point of Purchase Advertising Institute
  • "There are opportunities to influence consumers on the final choice of brands at the point of sale."
    Prof. Sanghavi, Manchester Business School, BrandChannel.com, July 8, 2002
  • “Impulse purchases are likely motivated by a variety of in-store marketing communications. In-store advertising also complements today’s hectic consumer lifestyle.”
    James Maskulka, Associate Prof., Lehigh University, BrandChannel.com, July 8, 2002
  • “A consistent projection of the brand’s personality in the package, and wherever else the brand was encountered, was far more reassuring to the consumer than a persona that was constantly changing.”
    Randall Frost, Brandchannel.com, “Packaging Your Brand’s Personality”, October 3, 2005
 
 
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