In-Store Spending trumps Internet Advertising in Growth

Filed Under Advertising, Digital Signage

Mediapost had an article yesterday on a Report released by Deloitte that really rings the bell on In-Store media/Shopper marketing. Ad Age also reported on it

First of all, you know you’ve started to hit the big time as an industry when the true heavyweights of consulting like the Deloitte’s, Accentures and KPMGs start cranking out reports on the industry. The study was commissioned by the Grocery Manufacturers Association

The study found that In-Store spending, which was only 3% of total marketing budgets in 2004, has grown to 6% of budgets and will go to 8% of budgets by 2010.

That means that the spending in our arena has doubled in just 3 years, growing at 21% CAGR compared to the Internet at 15% CAGR.

The report accurately notes that all of this growth happened:

despite the fact that marketers have yet to figure out how to define, measure or administer their shopper-marketing efforts

…..

Shopper marketing also has been hampered by lack of audience-reach measurements comparable to other media, which in turn makes it hard for marketers or agencies to make spending decisions or do post-campaign effectiveness analysis on shopper marketing the same way as for traditional media.

P&G apparently spends $500 million a year on Shopper Marketing out of total marketing pie of $8 Billion in global spending.

The comment that I liked the most and made me smile, because it’s so good for our business is:

Despite growing demand for in-store marketing opportunities, retailers increasingly are restricting supply, the study notes. Because of “clean-store policies” that restrict the number and types of in-store ads or merchandising displays, the total number of retail displays have declined 4.4% in the past year and 9.1% in the past two years.

What this means is, demand is up, supply is down and the easiest media to buy and execute will be Digital Signage. woo hoo!

Here’s some food for thought though. “Shopper Marketing” dollars aren’t included in what we get classified as: “Out Of Home” ad spend. So if OOH Ad Spending is up 5.1% on the back of Digital Signage and “Shopper Marketing” dollars have doubled in the last 3 years to 6% of total marketing spend and Digital Signage is also included in that, then wouldn’t Digital Signage’s market size be a tad under-calculated? ….I’m just saying… :)

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