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Media Facts
Point-of-Purchase


Advantages | Disadvantages | Plus Radio

According to the Point of Purchase Advertising Institute, marketing-at-retail is "the point where products meet the consumer who has the capability and desire to buy." It is the last opportunity for brand marketers to influence the consumer with their marketing campaigns." Anyone who's instinctively taken advantage of an in-store "50% Off" promotion can attest to the persuasiveness of point-of-purchase marketing. The operative word for Radio in the quote above is "desire." Radio drives desire and is, therefore, the perfect partner for a P-O-P campaign.

So why is Radio largely absent from all the P-O-P marketing that goes on all around us every day? Radio's lack of involvement in P-O-P promotions can be traced to one single cause: P-O-P promotions are not created by, administered by, or paid for by advertising contacts. For the most part, Radio salespeople still limit their sales efforts to advertising contacts. We are not calling on the people who buy and sell P-O-P.

A report by the Point-of-Purchase Advertising Institute, involving the country's largest drug store chains, concluded that at-retail advertising generates 6.5 percent in incremental sales. But the research also found that a greater sales increase -- in some cases three to four times greater -- comes from adding advertising to promotion programs. Advertising makes a POP promotion three to four more times more successful! And yet, adding advertising is not a decision that is made by someone in the advertising department. Interesting. In fact, some might call that a conundrum.

So who are the people making these decisions? To understand the answer, you must first understand the schematic of both manufacturing and retail companies. In simple terms, manufacturers make products and wholesale them to retail companies who, in turn, buy them and resell them to the consuming public. The relationship between those two entities is where Radio must find a point of entry if we want to be a part of the P-O-P process. The decision-makers we must work with are the sales contacts from the manufacturers and contacts from either merchandising or operations inside the retail company. They both have needs, but they are not advertising needs. The manufacturer's need is to sell more goods to the retailer and the retailer's need is to be more profitable. Radio can be very effective at helping both sides of that equation.

By identifying and contacting merchandising or operations managers at retail companies and discussing their needs, a savvy Radio salesperson can create P-O-P programs that will drive the exact consumer response the retailer is looking for. Then, by identifying the manufacturer's sales contacts who work with the retailer and discussing their needs, the Radio salesperson can secure funds from them in return for the retailer's agreement to provide in-store promotional involvement for the manufacturer's products. In the end, the retailer enjoys the increased profitability from a successful promotion, the manufacturer enjoys the resulting additional sales to the retailer, and Radio enjoys the new revenues from a non-advertising source.

And, isn't that the point of all this?
Advantages

Placement: P-O-P advertising can be placed almost anywhere in stores – next to merchandise, on shopping bags, at the checkout counter, even suspended from the ceiling or laminated into floor tiles.

Targeted: P-O-P is most effective when it is positioned to reach a clearly defined consumer target closest to the time of purchase.

Effective: Place-based advertising directly affects sales, brand switching, portfolio purchasing and multi-unit sales.

Influential: P-O-P advertising gives retailers the opportunity to influence consumers in a competitive environment.

Incremental Sales: P-O-P advertising can persuade shoppers to purchase additional quantities of a product, or to buy related products that are merchandised together.


Disadvantages

Limited Reach: By definition, place-based advertising only reaches that small group of consumers walking past displays, waiting at the checkout counter, or carrying their bags to the car. Moreover, studies show P-O-P marketing works best when geared toward younger, single, less-affluent shoppers.

Product-Oriented: Place-based advertising influences what products consumers may buy, but not where they will buy them. Though often effective for improving product sales, place-based media inherently are limited in their ability to attract new customers, build traffic, and improve market awareness for retail advertisers.

Consumer Perception: Many consumers report that in-store TV monitors, electronic signs, and in-store broadcasting have little impact on them as they shop they also claim that these devices blend into the environment.

Limited Targeting: Despite its key placement, general-reach, place-based advertising such as in-store television delivers limited results and can be prohibitively expensive.


Plus Radio

Excellent Reach: By adding Radio to your place-based promotions, you can greatly enhance the frequency and impact of your campaign. Radio reaches consumers everywhere -- at home, in the car, at work and on the street. On a typical day, 72% of adults 18+ listen to the Radio.(Arbitron RADAR 108, 2011)

Product and Retailer Oriented: Radio is a synergistic companion to P-O-P advertising. If you want to promote a specific product or service, Radio can deliver the customers you want, and even offer on-site broadcasts that are proven marketing winners. By using a combination of Radio and P-O-P advertising, you can “sell the store” as well as increase average unit sales.

Personal Connection: The Radio Ad Lab study shows Radio listeners connect with their Radio station and its advertisers. Create an image and awareness for a product before consumers see the Point-Of-Purchase, making the POP more effective.

Targetable: Place-based media targets highly likely potential prospects…and Radio will expand the targeted reach and message frequency of your program. Because each format attracts a specific segment of the population, Radio can help you influence your best prospects effectively and efficiently by age, gender, race, income and lifestyle.