After much ado, the initial results are ready and available for consumption (for $5,000).

The study, entitled, “In-Store Traffic — Where’s the Shopper,” compares 308 categories in Supermarket and Drug stores to uncover where manufacturers can find the greatest opportunity to connect with shoppers during their store trips.  Click here for a brief on what to expect when you purchase your copy.

This is disappointing news because it is critical that we create a measurement model in the not too distant future for shopper marketing in order to track the store as a measured media. That would allow all manufacturers and retailers who participate at retail to execute a measured media in the store and compare this to other forms of media. Until we are able to measure the content, compliance, frequency and reach in the store, we do not have a valid measured media discipline. However, this does not prohibit the industry from continuing to grow it’s use of in-store execution as a valuable medium to drive sales volume and brand equity measures.

The need for a P.R.I.S.M.-like model to measure in-store media does not go away. In fact, it increases, given the economy and the need to engage shoppers more than ever.  The need to understand in-store shopper behavior is vital. The need to determine what in-store marketing communications vehicles provide the best return on marketing spend is essential to prudent marketing planning. We must continue industry-wide pressure to create and launch this capability (or something like it) to understand and measure reach by category by retailer. We believe this is critical so that marketers can best align their marketing spend across product categories, brands, geographies and customer segments. To not do this will be a blow to our industry and our profession.

Al Wittemen’s article in the November issue of HUB Magazine refers to the online world as “second life.” According to Wittemen, most everyone has a second life, interactions that exist primarily through online experiences. So now CPG’s are trying to meld the best of both worlds, using the measurability of online activity to predict as well as influence offline behaviors. P&G seems to be at the forefront of this experiment. Wittemen describes their Tide.com site:

“It’s absolutely brilliant from a shopper marketing perspective. When you click on any of the various products, the entire shelf set comes up in a flash movie. If you remember, a few years ago every P&G shelf set was standardized so that it is nearly identical from store to store. This allows consumers to have an experience with Tide in any store, in the comfort of their own homes.”

The benefit of this type of online scheme is farming data on shopper behavior quickly and easily. Last week, P&G invested $7.5 million for a 1 percent stake in Ocado, a British online grocer. Tressie Long, spokeswoman for P&G said of the investment, “It’s an opportunity for us to deepen our understanding of unique shopper knowledge that Ocado offers. We see their business model as fertile testing ground for new ideas.”

P&G seems to understand that cost and price manipulations are not going to do the trick in the long term. It’s like we mentioned yesterday in reference to the Nielsen report that, “marketers will have to get much closer to their customers.” The second life concept presents a way to build that closeness. Wittemen muses that marketing will have to become more relevant. “Relevance are things that may be a little softer, but more meaningful in our lives. You have to have some relevance with people’s lives to connect with them on an emotional level.”

The Nielsen report covers 20 important areas for change. I’ll just highlight the few that came up in conversation with fellow retail professionals.

• “Ad spending will be tight. ”
  This includes in-store media. “Nielsen reported significant ad spending declines in the first half of 2008 by eight of the top 10 advertisers—down roughly 6% during the same period in 2007. As companies continue to downsize and scrutinize spending, expect these declines to continue, especially within the automotive category and with Financial Services companies. However, product categories such Direct Response Product, which increased spending 20.48%, and Credit Card Services (+18.95%), should continue to spend on advertising.”

• “Coupon redemptions will rise.”
  With all of the lifestyle adjustments that consumers had to make during the gas price crisis, people are now very comfortable with the idea of changing their habits or starting new ones to save a dollar. “As consumers look for more deals, expect coupon redemptions to increase. While coupon activity is actually flat versus year ago, this is positive news as it is the first time in many years that redemptions didn’t fall. As more manufacturers and retailers make it easier for consumers to gain access to coupons via email, mobile phones and in-store methods, consumers will take advantage of this cost-cutting strategy.”

• “Brand prestige will be driven less by premium price. ”
  Consumers are not consuming unless they see a real value. Marketers will have to get much closer to their customers to find out what services will really make a difference in their lives…then give it to them. “Expect to see fewer premium-priced new products introduced into the market in 2009. However, focusing on low price may under-deliver on expectations. Marketers should look to emphasize a brand’s value proposition in new and unique ways by linking the value message to the consumer benefit.”