On- and Off-Premise Signage and Point-of-

Purchase Communications

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Out-of-Home (Outdoor) Advertising

• $7.2 billion annually in the US• Regarded as supplementary• e.g., billboard(major), bus shelters, giant

inflatables, shopping-mall displays, airports, etc.

• Americans report traveling an average of slightly over 300 miles in a vehicle in a typical week with an average round-trip commute totaling about 55 minutes.

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Billboard Advertising

• 400,000 billboards in the US

• Designed with name recognition as the primary objective

Two major forms:

(1) Poster Panels

(2) Painted Bulletins

(3) Digital billboards

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Billboard Advertising

• Alongside highway and heavily traveled locale

• Silk-screened or lithographed and pasted in sheets

• Sold on a monthly basis• Clear Channel Outdoor,

CBS Outdoor, Lamar Advtg.

Poster Panels Painted Bulletins

• Hand painted directly on the billboard, or computer generated vinyl images

• Purchased for 1-3 year period

• To achieve a consistent and relatively permanent presence

Digital Billboards

• Huge flat screen TV that rotates messages every so often

• Potential for increased revenue for the billboard owner

• Expensive to install ($250,000 each); represent visual pollution and distracts drivers

• Offer flexibility to advertisers (messages can be changed frequently)

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Buying Out-of-Home Advertising

• Purchased through companies that own billboards, called plants e.g. Clear Channel Outdoor; Viacom Outdoor

• Plants sell space in terms of showings– Showings are percent of population exposed – #25: 25% of population exposed

• Recently, GRPs (gross rating points) are used - % of population in a market reached at least once.

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Outdoor Advertising’s

• Broad reach and high frequency

• Geographic flexibility• Low cost per thousand

($0.85 & $1.78 as opposed to $9.62 for a full page color magazine ad)

• Prominent brand identification

• Opportune purchase reminder

• Demographic Non-selectivity

• Short exposure time• Environmental

concerns

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Measuring OOH Audience Size and Characteristics

• The size of the audience to be reached when using these media – Traffic Audit Bureau – How many people pass by a billboard site.

• Audience characteristics not measurable• Nielsen Media Research – Npods (Nielsen

Personal Outdoor Devices) & GPS systems

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A Case Study of Billboard Effectiveness

Study Findings

• Adams Outdoor and Cognetix Advtg.

• Charleston area – achieved 75 showing at a four week cots of $25,000.

• By week 3– 67% indicated awareness– 77% had neutral to favorable attitudes– 85% indicated positive purchase intentions

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On-Premise Business Signage

• Considered the most cost-effective and efficient form of communication available to retail businesses.

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Types of Signs: Free-Standing

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Types of Signs: Free Standing

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Types of Signs: Building-Mounted

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Types of Signs: Building-Mounted

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ABC’s of On-Premise Signs

ttract New Customers

rand the retail site in consumers’ minds

reate impulse purchases

Conspicuity: the ability of a sign to capture attention.

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Point-of-Purchase Advertising

• Point-of-purchase;store environment• A final opportunity to affect consumer

behavior• Many product-and-brand choice decisions are

made at this time• “Shoppers are explorers. They are on a

safari, hunting for bargains, new products and different items to add excitement to their everyday lives…”

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The Spectrum of P-O-P Materials

Permanent displays

Temporary and Semipermanent

displays

In-Store Media

displays intended for sixmonths or more

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Illustration of a Floor Advertisement

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Point-of-Purchase Displays

Illustration of an Award-Winning

Permanent Display

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Point-of-Purchase MaterialsPermanent P-O-P

Temporary and Semipermanent P-O-P

In-Store Media

displays intended for sixmonths or more

displays intended for fewer than six months

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Point-of-Purchase Displays

Illustration of an award-winning semipermanent

display

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Point-of-Purchase Displays

Illustration of an award-winning temporary

display

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Point-of-Purchase MaterialsPermanent P-O-P

Temporary and Semipermanent P-O-P

In-Store Media

displays intended for sixmonths or more

displays intended for fewer than six months

executed by a third party (P-O-P radio, shopping cart ads, shelf talkers,

coupon dispensers, etc..)

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P-O-P’s Influence on Consumer Behavior

• Informing– Motion displays vs. static displays– S.B. Thomas’ English muffin

• Reminding– Encoding specificity principle – recall is enhanced

when context during recall is the same or similar to the context when the message was encoded.

• Encouraging

POPAI consumer buying habits study

• Confirms that in-store media, signage and displays heavily influence consumer buying decisions

• 4200 consumers interviewed at Bradlees, Target, Walmart and Kmart in 14 major US markets

• Entry and exit interviews

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Results from the POPAI Consumer Buying Habits Study

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Product Categories With the 5 Highest and 5 Lowest In-store Decision Rates: Supermarket

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Product Categories With the 5 Highest and 5 Lowest In-store

Decision Rates: Mass Merchandise

Factors affecting in-store decision making

• Unplanned purchasing is higher when– Major shopping trip– Larger household size– Deal-prone

• Retailers want consumers to stay in stores longer– Frequently bought items like milk, eggs, etc.

at the back of the store

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The Brand Lift Index

• Indicates how P-O-P materials affect the likelihood that customers will buy a product they had not specifically planned to buy.

• Increase in in-store purchase decisions when a POP is present vs. when it is not.

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Supermarket and Mass Merchandise Product Categories with Highest Average

Brand Lifts from Displays

Display Information for POPAI/Kmart/P&G Study

• POPAI, P&G and Kmart• 6 product categories – paper towels, shampoo,

toothpaste, deodorant, coffee and fabric softener• P&G brands sold at regular price for 4 weeks• Three groups of 25 Kmart stores each –

– Control – brands in their normal shelf position – no display or other advertising

– Test group 1 – advertised brands on display– Test group 2 – different display and/or in a different

location in store

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Display Information for POPAI/Kmart/P&G Study

The POPAI/Warner-Lambert Benylin Study

• Drugstores in Canada – Toronto, Montreal and Vancouver

• Benylin cough syrup and Listerine mouthwash

• Four groups of stores – one control and 3 experimental

• Experiment over 2 weeks

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The POPAI/Warner-Lambert Benylin Study

Regular Price Benylin Normal Shelf Space

Normal Shelf Position-Feature Price

Feature Price on Endcap Display 98% Sales Increase

In-aisle floorstand displays of Benylin at a

feature price 139% Sales Increase

29% Sales Increase

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The POPAI/Warner-Lambert Listerine Study

Regular Price Listerine Normal Shelf Space

Normal Shelf Position-Feature Price

Feature Price on Rear Endcap Display 141% Sales Increase

Front Endcap displays of Listerine at a feature price

162% Sales Increase

11% Sales Increase

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Reasons Why P-O-P Materials Go Unused

• There is no incentive for the retailer because the materials are poorly designed and don’t meet their needs.

• Some displays take up too much space for the amount of sales generated.

• Some materials are too unwieldy, difficult to set up, or flimsy.

• They lack eye appeal. • Sales may transfer from one brand to another

but not increase retailers’ overall sales and profits.

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Persuading Retailers to UseP-O-P Materials

• P-O-P must satisfy the retailer’s need and the needs of the consumer– Right size and format– Fit the store décor– User friendly– Sent to stores when they are needed– Properly coordinated with other marketing

communications program– Attractive, convenient, and useful for

consumers