In-Store and Online Advertising
August 25th, 2008Here’s an article from last week’s Wall Street Journal called The Ad Changes With the Shopper In Front of It. Very cool. It’s about how some companies, including Procter & Gamble and Dunkin’ Donuts are using new technology to increase the effectiveness of their in-store advertising. DD is using digital screen ads that change based on the customer’s purchase. For example, if you stop in for breakfast and purchase a coffee and bagel, the screen at the register will remind you about their new flavor of iced tea and personal pizzas as a lunch idea. Great stuff. P&G is working with Metro Extra in Germany with radio frequency tags which causes a screen at the customer’s eye level to display an ad based on the product that was picked up off the shelf! You pick up a certain brand or type of shampoo and the ad displayed changes to a complimentary conditioner.
This shift in advertising comes at a time when television spots are almost worthless due to the amount of noise viewers have to deal with, popular technology like TiVo and On-Demand, and the fact that the results of the ad are virtually untrackable. Businesses are trying to get their ads closer to the consumer purchase, which is one of two places: in-store or online. With an in-store ad, companies can rest assured that people are seeing, and not blocking, the ads (yet) because there isn’t as much competition for the consumer’s attention as there is on television. It is also much cheaper than a television spot and more trackable with automatic promotion and coupon codes.
Online advertising and social networks are also becoming the new battlegrounds for consumer attention. Every click is trackable; companies can see exactly where their customers are coming from, where they leave, how long they stay, and what they click on. Try to do that on television, or even in-store! Additionally, for many small-medium businesses, they benefit from the small price-tag of developing an online presence and the fact that they may have very little competition in their market. What’s even more appealing about developing an online presence is that they are providing consumers with information at the exact time when consumers are LOOKING FOR IT! In-store advertising and shifting display ads may be great for impulse-buys, but when it’s a more involved purchase, people research it first. 78% of internet users say that they research a product or service online before they purchase it (Pew Internet and American Life Project). That’s where you, as a business, want to be!
