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Jun
5
Now here’s an interesting trend going on that could confound the National Ad Spends. It’s small but man, if it got big, every Brand would have to retool something fierce. Each Brand would have to become a Wal-Mart unto themselves and source everything relatively locally (ok fine…Wal-Mart just pretends to source locally for a few minor lines).
An article on
Points out an interesting trend on “LocaVores” - Those who only consume food developed local to their markets. It comes from an interesting stat that I didn’t know which says:
that the average American meal travels 1,500 miles before it lands on the dinner plate
wow
Here’s another doozy from the article:
A favorite stat: Every $100 spent at a local firm leaves $68 in the Chicago economy, compared with just $43 when $100 is spent at a chain store, according to the Andersonville Study of Retail Economics, published in October 2004.
The study also found that for every square foot occupied by a local store, the economic impact topped $170, compared with $105 for a chain store.
This follows on an interesting trend earmarked by Jeff Dickey from SeeSaw Networks and Dave Haynes (see the discourse here) that speaks to National Brands being hurt by generic/private label brands due to a lack of “communications adoption” by the younger demographics.
So, if younger viewers don’t know much about National Brands, and Local Communities want to buy local Brands (because it strengthens their economies AND communities) how does that affect the bottom line of a P&G 10 years from now as emerging trends?
Now, add on to that the fragmentation effect of disparate mediums like TV not reaching the targets it needs to for a reasonable efficient ad spend and you start to get an ugly picture.
The fun thing about Digital Signage is you can actually pick a postal code and target messaging in a defined radius of Digital Signs around it and almost be guaranteed to impact your target if you’ve got enough “presence” of marketplace. As a brand, local or national, it could present a pretty attractive ad medium, especially if, as a National Brand, you see downward sales impact in a locale because of a trend like this or, alternatively, as a local guy, you can promote the heck out of retailers who sell your product in a co-op ad spend to direct people to a particular store or set of stores…and all at reasonable ad rates that can be assumed by a local retailer+manufacturer….it’s like going direct to your local cable TV owner back in the 70s and saying, “hey Bob, wanna run my ad for corn?”
Like I said - lot’s to confound the Nationals these days…although it’s not like they’re hurting too badly for it…P&G did still have EBITDA of over 6.5 Billion in 2005 
digital-signage
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