In-Store Television Advertising

In-Store Television Advertising
In-store television advertising, also known as digital signage, is the act of advertising any kind of product in any type of retail store, mainly through LCD televisions placed strategically through-out the store. Placement of these televisions broadcasting advertisements might be at eye level through-out the store you’re in, at the end of aisles, and possibly near checkout counters. They provide eye-catching displays that are on a continuous loop through-out the day, sales promotions at a retailer’s location, bundled offers, expert advice, product demonstrations, product samples, special discounts and more. If done properly, in-store advertising could create powerful recall of a national television advertisement, right at the point of purchase.

Reasons For Using In-Store Television Advertising
Television has been people’s main source for news and entertainment for decades. So it’s clearly reasonable to expect that TV’s located in other venues would attract substantial attention and interest.
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Advantages of using in-store video:
  • It stimulates recall
  • Extends the brand into the store level
  • Counteracts the campaigns of competing brands
  • Makes the consumer feel good about buying their brand
  • Provides a considerable way to prove the power of TV to create retail success

Using in-store video provides customers the ability to make fast and accurate decisions. It informs customers about actions and promotions and allows you to use Microsoft PowerPoint to design and display on your screens, letting you create your own advertisements for special in-store promotions. It saves time and costs by automating communication/message boards and displays the latest information in real-time. Equally as important, digital signage can deliver better quality graphics, text and moving images than most consumers can’t get on their TV’s at home.

Limitations For Using In-Store Television Advertising
Reasons people don’t use in-store advertising is more obvious than ordinary. Some companies lack the budget/resources needed to jump start digital signage and some companies just lack management commitment. So there aren’t too many limitations to using in-store advertising, it’s the advantages that are endless. The fact that some companies lack the budget/resources needed means that the idea of having smaller companies, say mom and pop stores in small towns, might not have the resources needed to start using another medium for advertising.

Costs Of Using In-Store Television Advertising
Since the dawn of digital signage, costs for using such a medium have significantly gone down. When flat screen televisions came out, in-store advertising became more popular, but also very expensive for the TV was, besides the support, cost the most. As of 2009 here are the numbers for what it would cost to use digital signage today:
• 40” LCD TV - $800
• Player Hardware - $775
• Display Mount - $110
• Player Software - $405
• Management Software & Tech Support - $1,300
• Installation - $740
• Initial Project Management - $225
Total = $4,355
On top of this, staffing requirement for any digital signage network is standard. As you can see, besides the tech support and management software, the television is still what costs the most, being mainly the only limitation to a company thinking about using in-store advertising. But through-out the years, digital signage has never been more affordable and available then it is today.

Reach & Frequency/Scheduling Of Using In-Store Television Advertising
Digital signage reaches smarter audiences who expect a smarter medium. To audiences, digital signage looks like TV, but feels like the web, so there’s a familiar feel to it, but pacing and movement of the message is more like the web. One consultancy estimates that 2/3 of purchasing decisions are made in-store, which means digital signage can only help. Also founded was that the average advertisement recall for one retailer’s in-store system was 57%, compared to an industry average of 24% for in-store TV advertisements.
The commercials are looped continuously every 15-30 seconds. The messages can be changed constantly, trying to tailor to specific day parts, store situations, seasonal needs, or whatever situation demands. For example; banks can adjust the message to reach retirees who tend to visit in the late morning, focusing on products best suited for seniors. Bookstores can advertise new releases, upcoming author appearances, and specials in the café.

Impact/Responsiveness Of Using In-Store Television Advertising
ABC National New Media Sales developed a system. They conducted a study for newsight a while back that set some benchmarks. 75% of shoppers noticed the in-store video on the screens, and 89% reacted positively. Interestingly, 30% of shoppers said they made an unplanned purchase after seeing (a product) featured on the in-store network. Feedback from using in-store TV advertisements has been overwhelming positive, and momentum continues to build.

Advertisers Successfully Using The Medium / Audience Qualities
ABC has successfully created programs with Coke, Pepsi, Dannon, Masterfoods, Hersheys, Campbell's, Nestleand Kraft. The most popular retailer that uses this medium for these different products is Wal-Mart. They have over 125,000 screens in about 3,100 stores and a potential audience of more than 127 million shoppers per week. Other retailers, including supermarkets and electronic stores also have created successful in-store TV networks. Based on their work with many OOH advertising clients, ABC New Media Sales has certainly seen that a well-produced and targeted in-store network provides valuable impressions at point of purchase and heightens sales of featured products.


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