Selling product might be your specialty as a retailer, but there could be other sources of untappedrnrevenue potential hiding right under your nose.
Selling product might be your specialty as a retailer, but there could be other sources of untapped revenue potential hiding right under your nose. Hypermedia CEO Ben Partington says some retailers may be missing out on monetising unused store space through in-store signage and media displays.
While retailers traditionally generate the larger proportion of their revenue from product sales, unused in-store advertising spaces are also proving to be a powerful source of incremental revenue.
“There are many areas of retail stores that can be better utilised to display branded signage that acts as an experience enhancer for the shopper, a sales driving opportunity for brands and a strong earner for retailers,” says Partington.
“As you’d expect, spaces that can deliver a sales uplift at point of purchase are extremely attractive to advertisers who have their products ranged in-store.
These signage opportunities have the ability to help advertisers cut through the retail clutter – disrupting autopilot shoppers, conveying key product benefits and persuading customers to make impulse purchase decisions.
Partington says it’s a widely recognised fact that a heavier brand presence at retail can have a profound impact on sales, with in-store signage and captivating displays being some of the best methods available to deliver persuasive communications at the key moment during the shopper journey. A particularly powerful benefit of in-store signage is the ability to remind the shopper of advertising they’ve been exposed to outside the store, thus converting brand awareness into sales.
Retail advertising channels are also of interest from outside advertisers given the sheer audience volume visiting New Zealand’s larger chain stores on a weekly basis. While these spaces are of notable value to suppliers and external advertisers alike, the incorporation of in-store media programmes are allowing savvy retailers in the grocery, DIY, fuel and liquor industries to earn additional revenue off previously unused spaces with very little effort on their part.
“Hypermedia can help retailers expose the untapped revenue within their store and market their unused spaces to interested advertisers,” says Partington.
“We’re a media company that has successfully operated as a conduit for shopper marketing activation since 2010 when we began selling space in Countdown supermarkets. With 184 stores and an audience of more than 2.5 million shoppers per week, the Countdown media channel is one of New Zealand’s premier point of purchase media opportunities for FMCG advertisers.”
Partington says signage products such as shelf fins, floor decals and trolley fronts can add value to the shopping experience by acting as navigational, inspirational and informative tools
. Many of these formats are regularly utilised by leading New Zealand FMCG companies including Heinz Watties, GlaxoSmithKline, Sanitarium and Vodafone.
“Retail environments are over-stimulating by nature with so many competing products, colours and sounds all vying for shopper attention,” Partington says. “Our signage is designed to be disruptive in that it stands out above the noise, but complementary in that it actually helps the shopper make quicker and more confident brand choices.”
Asked where this form of marketing was headed in the future, Partington referenced an emerging trend in international markets known as sensory signage. He reported that a more sensory approach to in-store signage in leading retail media markets such as Asia is growing in popularity.
“This style of marketing is designed to form more meaningful connections with shoppers at retail by appealing to all five senses, rather than just relying on their sight, which already has a fair amount to cope with in these environments,” Partington says.
“There are a number of techniques Hypermedia are employing currently that can deliver a sensory approach such as scented signage, motion activated sound and 3D floor media.”
While the benefits to advertisers are plentiful, the pay-off for retailers in building an in-store signage programme is significant and the trade-off in time and effort is limited when there are external agencies champing at the bit to manage the entire process.
Through engaging with companies like Hypermedia, retailers can provide a better experience for their shoppers and a rewarding marketing programme for their suppliers, all the while earning significant incremental revenue from unused space.
Sounds like a win-win situation to us.