I spent most of my career in retail media focused on online tactics such as sponsored product ads, banner ads, email, social, etc... so jumping headfirst into the deep end of in-store digital signage was eye opening. The biggest thing that struck me was the high volume of screens retailers were convinced they needed to deploy in their stores, mainly because that is what they have been told by countless screen hardware companies. Mob mentality at its finest!
I spent years easing the fears of retailers who were worried I wanted to turn their website into a NASCAR jumpsuit, with ads and brand logos plastered on every square inch of white space. When it became me telling the retailer they shouldn’t be plastering their stores with dozens of screens, I knew there would be some work to do.
I was curious to understand the pitch retailers have been bombarded with, so when I asked, I wasn’t too surprised with what I heard because it mirrored what early online publishers had been doing. The pitch being, if you have two screens in your store and are projected to make $1000/month, then 4 screens will generate $2000/month, 8 screens will generate $4000/month and so on.
The problem with this math? It doesn’t change the number of people walking into the store. There are still the same number of eyeballs, which when coupled with attention and the resulting dwell time, become the most important currency. The second problem is that you don’t throw out the in-store customer experience to drive ad revenue through a plethora of screens. It simply doesn’t work.
If we all agree that putting too many screens in your store makes it resemble a ransom note instead of a store designed to sell products, what are the considerations to keep in mind?
The first consideration is that not all screens are created equal. Large vertical screens, horizontal screens, dual-sided screens, check-out screens, kiosks, endcap screens and far too many more to list. While it is easy to be a deer in the headlights with the variety of choices in front of you, it is key to start with the area of the store.
For example the entryway of a store, where most retailers should start, captures the eyeballs of every single shopper. It is a great opportunity for large vertical freestanding formats (single or dual-sided) and large-format wall displays because it sets the tone for the shopping visit. Other zones in the store are more targeted and are better suited for different types of displays. In all cases, though, quality over quality is the key.
The error that so many retailers make is assuming the same metrics for each zone in the store. Let’s take the fresh food section of the store as an example. While it is a high-traffic area, it doesn’t have 100% of the store visitors like the entryway does. Therefore, we need to assume this area sees a smaller percentage of foot traffic and the impressions that come with it. Since this is a more targeted store area, you can also garner higher CPMs from suppliers looking to advertise closer to the purchase decision. These factors play a role in calculating the ROI for screen deployment. It is essential to understand that different zones will generate different yields.
It is important to be intentional with every screen. Just like you wouldn’t put a banner ad at the bottom of your website and expect it to generate high revenue and positively influence sales, you can’t hide a small screen in an obscure part of a store zone and expect it to have an impact. It also doesn’t mean you should deploy a screen that looks so out of place it is the equivalent of the old online “punch the monkey” pop-up ads. Be intentional. Align your experience and sales objectives with the right screen for the zone.
While it is fun fodder to poke fun at the companies who recommend “strategies” that drain CAPEX without any chance of recouping the investment, there are some “good guys” who take the right approach. In addition to the consultative work we do at Vistar, we also are connected with several agencies / consultancies who take the right retail media approach, making sure any screen deployment is going to be a win for the Customer, Brand Advertiser and the Retailer. Let’s have a conversation about getting on the right path that wins for everyone.