Internet is choking newspapers.

Could in-store media make television advertising obsolete?

TV ad executives are scrambling to assure investors they’re not in trouble. However, CBS shares dropped nearly 13 percent after announcing a quarterly loss and revenue well below expectations. The network has even gone so far as to advertise to its advertisers.

In-store media and shopper marketing has its share of skeptics as articulated by Peter Breen at the In-Store Marketing Institute. Although television advertising is suffering in the recession no one is calling for its total demise, but the writing may be on the wall. Smaller ad budgets, shorter attention spans and TIVO-using, commercial-skipping television audiences are taking a toll. Prices of ad buys have dropped, however the creativity required to capture the consumer’s attention is at a premium. Adding more fuel to the fire are consumers asking the question, “What’s in it for me?” Frugal shoppers want to be convinced that a purchase is valuable. Dr. Pepper Snapple Group’s Rob Colarossi said at the In-Store Marketing Summit, “It’s not about the brands. It’s about truly understanding and looking through the lens of the shopper.”

According to Breen, retailers are catching on.  In his article, “What ‘Shopper Marketing’ Means to Me” he cites several examples of how retailers are implementing shopper marketing programs aimed at creating lift by catering to shoppers’ needs in the store.

Predicting the demise of television advertising may be a stretch. However, at the minimum a symbiotic relationship must begin to emerge between TV and in-store media. TV ads may get them there but in-store media makes them buy.

Mays believes it’s his simple, honest approach to selling that takes a product from zero to millions.  However, there is another equation that accounts for his success, the success of infomercials in general and the value proposition  of in-store media. Connecting informative and entertaining media with an immediate purchase opportunity equals sales. First, facts make people consider an item, emotion causes them to act.  Product tests and demonstrations in infomercials show customers precisely what they need to know about a product — how it will fit into their lives.  Lively hosts and excited user testimonials create the emotional trigger to motivate consumers to buy. Where in-store media and infomercials have the advantage over other media is providing an immediate opportunity for consumers to act on that emotional trigger by making a purchase.

In the store, as soon as a shopper is motivated by a digital presentation, signage or product demo, they can make the purchase.  All other media is separate from the immediate purchasing opportunity.  How many additional steps must be taken after seeing a compelling beer commercial before you can actually be drinking a cold one? How long must that motivation be sustained before you actually have an opportunity to make a purchase?  Most importantly, how much does it cost an advertiser to make that kind of lasting impact? According to the LATimes, “the nation’s Top 10 advertisers spent 15.1% less in 2008.”  Assuming that’s a decrease in traditional advertising, how do they reach their consumers now?

Bryson listed Kraft, Kellogg and General Mills among companies that see value in continuing to pump monies into their advertising budgets. At that time, the manufacturers found that upping their marketing spending allowed them to pass on price hikes without losing the customer. That idea might be a harder sell this week. Things have changed and manufacturers will need marketing more than ever to stay competitive with value focused private labels. But how do you continue marketing, compete with private label pricing and stay profitable? The answer is value engineering.

It is imperative that manufacturers get the most out of their marketing dollars — particularly for marketing in the store where brands are placed alongside private labels. Partnering with a display and fixturing company that is strong in value engineering, has capabilities in multiple materials (sheet metal, wire, wood and plastic) as well as in house engineering can stretch those dollars. Creating modular design elements that allow multiple configurations, making use of fixtures engineered for easy installation and graphic change out without additional hardware requirements are all solutions that maximize in store marketing investments. Another solution is international sourcing. Just be sure you have a partner that has many years of international experience and employees on the ground inspecting factory production processes to ensure you get a high quality product. 

In Bryson’s article, Larry Light, former global CMO of McDonald’s, articulates the value of marketing in today’s economy. “Investing in brands during a rough economy can not only fend off share loss but also boost the brand’s trajectory when things improve.” Light’s research classified companies who spent more on advertising and marketing during a recession as “winners” and those who cut spending as “losers.”

According to Light, “Losers cut marketing in a recession, and the result is they simply accelerated their loss in market share after the recession.” Value engineering keeps your brand in the game.