Monday, March 26, 2012

In-Store Advertising Is Gaining Renewed Interest


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Have you ever walked out of a store having purchased a product you had noticed/experienced for the first time in that store itself? It maybe discounted cosmetics that the woman at the counter enticed you into buying or a set of deodorants on special offer promoted by posters in the store. If yes, you have witnessed in-store advertising at work-a medium that has received ample success the world over, and is demanding renewed interest in India.
Global retail giant Walmart has tried and perfected its in-store advertising formula since 1997. Through its medium, Walmart TV, an in-store TV network meant to grab consumer attention through effective advertising, Walmart has a potential audience of more than 127 million shoppers a week. Of course, these numbers are dependent on the company's huge investments in 1.25 lakh TV screens at its 3,100 outlets. However, Walmart's style of programming the content, flawlessly blending paid advertisements with news, weather and entertainment content is what makes the medium a success. The company has created eight channels including health and beauty, style, electronics, fresh food, entertainment, grocery and news, to reach different segments of customers.
The big question is why has Walmart found this medium viable? In-store advertising allows ads to tap customers in high foot-fall stores that are already open to a purchase and looking for a good deal. By making ads shorter and by conveying the price advantage/quality benefits/offers on their products, retail and FMCG brands can effectively leverage their offerings over their competitors. This means crisp 10-15 second ads as opposed to 20-30 second ones. Along with this, there is a unique opportunity to induce touch-and-feel of products among consumers.
In the past, brands advertising on the Anil Dhirubhai Ambani Group radio channel Big 92.7 FM have gained a favourable edge over others since the channel was broadcasted at Big Bazaar's huge network of outlets. By being relayed at Big Bazaar malls in Mumbai, Delhi, Bangalore and Kolkata, Big FM was able to reach an excess of three million people a month or 40,000 shoppers on weekends. The company paid Rs 1 lakh per month to every Big Bazaar store that played the channel.
However, for Pantaloon Retail India Ltd, efforts at in-store advertising did not end here. Big Bazaar has a huge array of in-store advertising options for FMCG and retail brands, such as its monthly in-store magazine named My World, window displays, ceiling-high wall banners, kiosks, television screens and radio. A television channel, Future TV, is expected to feature ads interspersed with programming in the company's malls. Other marketing agencies like Vjive Networks are experimenting with store shelves that are positioned or designed to recommend certain products.
The interest in in-store advertising is justified by estimates that suggest that in-store ad revenues may be as much as 15% of a mall's total revenues. In non-metros and Tier 2 cities, the number of shopping centres and malls is on the rise, creating immense opportunity for retail and FMCG brands looking to raise sales. By coupling these factors together, industry experts have pegged ad spend in 'retail advertising' or in-store advertising at Rs 1,000 crore. Indeed, this space is shaping up to attract much more than below-the-line ad spends and has become the fifth-most significant medium after TV, print, radio and OOH.
Vritti i-Media is an innovative OOH advertising solution provider in small towns and villages in India.

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