Mobile Marketing Mayhem

Do you own a smartphone? I'm sure you have been asked this question sometime in the past year. As smartphones have decreased in price and increased in popularity, they found their way into millions of American pockets - 97.9 million to be exact. In a December 2011 study published by comScore, they reported that smartphones have penetrated over 40% of all mobile subscribers. With more and more people seeing the benefit of smartphones, marketers have found a new way to reach their customers - mobile advertising.

The rise of smartphones has lead to consumers going everywhere with their very own direct-response tool. With their smartphones, consumers can respond to other media such as in-store, magazine, poster, and TV ads where ever they are. According to a March 2012 study from Google, conducted by Ipsos MediaCT and TNS Infratest, a marketer's chances of reaching potential customers are steadily increasing.

Google's study showed that 43% of smartphone owners used their phone to search in response to television ads at least once a month. Even more interesting is that 40% reported searching in response to ads they saw while in stores. While searching based on magazines and out-of-home ads were less common, the report suggests that search will increase as people get more used to using their device to get information.

The report showed that 58% of respondents typically research products on their smartphones while at home, 43% searched while "on-the-go", and 31% searched while in the store. Retail was reported as the #1 out-of-home place where smartphone users take action. 

As marketers see the potential in in-store mobile marketing, they will look for more creative ways to push people to interact with their brands through these devices. This presents a great opportunity for digital signage. Google's report shows that 43% of smartphone users search in response to TV ads and 40% search based on ads seen in-stores. So, what would happen when we combine the two? 

Using in-store digital displays to grab the attention of shoppers and push them towards using their smartphones to dive further into product information, promotions, or sign up to receive the latest deal. Integrating mobile marketing with digital signage makes measuring both a little easier. Marketers can use mobile marketing to measuring the effectiveness of their digital signage and digital signage as a distribution tool to promote their mobile marketing campaigns - Two very complementary marketing methods 

Please share how your company is capitalizing on this mobile marketing mayhem. Are you using digital signage? If so, how have you integrated the two?

More Decisions Being Made In-Store

Facing a prolonged recession, high unemployment, and the ever-changing economy, the majority of U.S grocery shoppers are looking to save money wherever they can. But, according to Point of Purchase Advertising International (POPAI), the global association for the marketing at retail industry, when it comes to making decisions on what to buy more decisions than ever before, 76% to be exact, is being made in-store. 

POPAI's study pin-pointed five key findings that marketers should note when developing and implementing a shopper program:

Shoppers are making more decisions in-store

Although today's shoppers are empowered than ever to make educated buying decisions, it turns out that more shoppers are utilizing in-store marketing and branding cues to make an overwhelming portion of purchase decisions - 76% (an all-time high).

Brands on display are more likely to end up in the cart

The study found that nearly 1 in 6 brand purchases are made when a display with that brand is present in store. Displays are best targeted to a core group of loyal, female stock-up shoppers.

Retailers are missing out on opportunities to enhance in-store experience

Shoppers are spending less time but more dollars during their shopping trip. Whether it's using product displays in secondary locations or working with brand marketers to build customized in-store displays to reflect the retail environments, there are plenty of opportunities for retailers to turn their in-store marketing up a notch. 

The number of displays in secondary locations has increased 13% since 1995 - 47% in 1995 to 60% in 2012. Retailers are embracing the idea of cross promoting products and placing displays away from the home aisle. 

Creative sets apart in-store marketing and turns the subconscious shopper into conscious buys

When asked if they'd recalled seeing any in-store displays, 56% of shoppers said they did recalled seeing in-store displays with endcap and free-standing displays being cited the most. When presented with compelling and visual displays, shoppers become more engaged and conscious to the value proposition being offered. 

Another interesting find was that 13% had eye fixations on in-store displays and 66% of all that observed resulted in a purchase, which shows the importance of grabbing the shoppers' attention and getting them engaged with a product. 

Shoppers using plastic more like to impulse buy and more decisions in-store.

Those using a debit/credit card, or another non-cash payment, tend to spend more than they plan - and do. 

Read the full POPAI report here 

With more and more people turning to the internet for purchases like clothing, electronics, etc, the grocery store remains the one place where consumers must get up and go to the store. Of course you see local grocery advertising specials on TV, radio, and print, but as this report states the in-store marketing remains a powerful tool of persuasion for marketers. 

I look at this report and see a major opportunity for retail marketers and digital displays. The report states that when shoppers are presented with visual displays they become more engaged and conscious to the value proposition of an item. Digital signage is proven to have a higher recall rate than print materials. If retailers were to use digital screens built into free-standing, endcap displays, or even coupon dispensers they would have a better chance of capturing the buyers attention and engaging them with the item. 

Another opportunity to engage shoppers would be to add touch screen displays or kiosks through the store. The kiosk can be used to draw the shoppers' attention but also engage the user by allowing them to browse certain recipes for the product, check out other users suggested use of the product, etc. If printed materials can change a shopper’s conscious of the valued offer, just imagine what an interactive kiosk that helps to improve a shopper's fettuccine alfredo would do for perceived value.

Digital displays would also help retail marketers to better target certain audiences. Having the ability to change content on the fly allows retail marketers to target group A from 10am to 12pm, group B from 3pm - 9pm, and so on. Unlike print materials, digital gives marketers the ability to target who they want, when they want, and at the exact location. 

Digital Signage Industry Trends

 According to an IHS iSuppli Signage report, digital signage displays are projected to reach 17.3 million units in 2012, which is up 12% compared to 15.4 million units in 2011 and up 28% compared to 13.5 million units in 2010. The market is projected to see continued success with total shipments reaching 25.8 million units by 2016.

IHS iSuppli recognizes the growth in mainly contributed to:

- Increased use for installations in commercial markets such as retail and hospitality, along with public areas such as sporting arenas.
- Decrease in the price of LCD screens in the 40",42",and 46" sizes
- Improved technology: super-narrow bezel video walls, interactive touch-screens, and high-brightness outdoor displays

IHS iSuppli reports, that among the markets where digital signage displays are most often employed, the three highest-performing segments were retail, hospitality/healthcare, and government/corporate. They expect to see the same trend in 2012.

View IHS iSuppli Report Here

So, how is this relevant to the end-users of digital signage systems?

I see the decreasing price of LCD screens being passed down the chain. The initial hardware investment scares lot of companies when tossing around the idea of digital signage. If providers can lower implementation cost, and take away from some of the sticker shock, more companies may see digital signage as a 'less risky' investment therefore increasing the possibility for further deployment.

The decreasing cost of hardware is one thing, but as time has gone on we've also seen digital signage software become more robust with features and decline in price. Increased competition has forced SAAS companies to reduce price and add value-enriched features in order to stay competitive and differentiate themselves in the market. I think this trend will continue and price for software will continue to drop while the software itself will provide users with better ROI reporting and more user-friendly interfaces. These trends will attract the attention of more analytically-driven marketers thus making digital signage a more popular marketing vehicle within the marketing department.

The third major element that will evolve as the digital signage industry grows is and increased need for good digital content designers. Whether companies choose to bring it in-house or go through an agency, as interest in digital signage grows and equipment becomes less expensive, having a designer that can whip up some well-branded content will be a much needed asset for any team. Software companies will continue to make editing templates easier for their users and offer content services for those who want it - Delivering everything the user needs to keep their signage fresh.

So as the industry grows and the price decreases, digital signage will develop into an out-of-box solution. Any mom and pop retail, restaurant, etc  will be able to afford and maintain their systems with ease. I don't think digital will ever replace paper merchandising, but I do see it becoming the more popular solution in the future.

What are your thoughts for the future of the digital signage industry?