Display graphics At Retail Stores: Effectiveness

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Display Graphics At Retail Stores: Effectiveness

Display graphics at retail stores are generally only mildly effective, but display graphics with price reduction related promotions are quite effective as well as display graphics positioned close to the cash points.

Overview on the Effectiveness of Display Graphics at Retail Stores

To understand the effectiveness of display graphics at retail stores, our research team decided to prioritized peer-review studies in academic journals on the subject, as against just opinions from experts on the subject as academic studies were more methodical and did control for other conflicting factors.
Our research found conflicting studies with regards to the effectiveness of display graphics in retail stores. A study into the effect of display graphics on relative sales. The researchers conducted an in-store experiment "to investigate the effects of a point-of-purchase display on unit sales of dishwashing liquid. The experimental conditions consisted of periodically placing two copies of the same display in convenience stores and supermarkets. The results were unanticipated; point-of-purchase displays did not change relative sales of the target brand. An antecedent intervention such as a point-of-purchase informational display is not sufficient to change consumer choice in the presence of utilitarian reinforcement in the form of a lower-priced competing product."
A similar study analyzed over 7 million shoppers interaction with display advertising for over three years to understand its effectiveness. The study found that shoppers generally do not attempt to look at or read anyone. Given that there can be up to 20,000 graphics looking to grab their attention in a crowded market, shoppers have learned to unconsciously ignore looking at display ads. In such a crowded marketplace, advertisers have only 0.9 seconds to convince a shopper to look at their display graphics. And shoppers will only interact with a display with "brands, promotions and messages that they view as personally relevant, meaningful and of value."

The research also found that although display graphics at retail store effectiveness is specific to the application, product and brand, point of purchase (POP) displays "featuring or simulating movement have a greater impact with shoppers." The research also found that if the same display is used too often, it loses its effectiveness and there is a need to "change graphics or re-dress displays to keep them fresh."

The study found that messaging with price reduction or benefit had the highest impact, however, this is not always the case. According to the study "most shoppers at first appear to be attracted to displays because of messaging focused on promoting new products, value or savings (5.17% impact ratio). However, this seemingly clear driver for shoppers becomes less clear when analyzed on the basis of which type of message actually engages shoppers. Price reduction (36.9%) and quantity discount/multi-buy (34.5%) all delivered a lower engagement ratio than POP displays which focused on promoting extra free product (50%), competitions (50%) and discount vouchers (41.7%), highlighting that the use of price promotion does not automatically translate to a more engaging proposition for shoppers. Instead, it suggests that finding alternatives to price could actually prove more beneficial."

Other interesting findings include:
  • Floor Graphics and WalkAround Displays work best for food/snack purchases. Premium displays are most effective on emergency food shopping missions. In-Store Demonstrations are by far the top performers by Impact and Engagement ratio.
  • 60% of shoppers in the study purchased items from POP displays promoting extra free products, whilst quantity discount/multi buy messaging was relatively lower, at 46% of all shoppers.

Another study on the subject we unearthed also found that price appeal in in-store display promotion was more effective than non-price promotions. In addition, the study also found that displays graphics that are close to the cash point or payment register were the most effective in terms of driving sales. The authors posit that the reason the register or cash point location is most effective may be because "customers are likely to have to wait for a few minutes until their order is taken. This waiting time favors the opportunity to process the displayed content."

A report by Entrepreneur Magazine claims that digital signage can increase brand awareness by up to 47.7% and can increase the average purchase amount by almost 30%. The reason digital signage is effective is because of its relevance, allowing brands to advertise "the right message, to the right consumer, at the right time."