Understanding how retailers use advertising to influence people to buy their goods is an important piece of the marketing puzzle when it comes to understanding consumers. This article discusses how retailers use in-store advertising and what effects this has on customers, potential customers, and the retailers themselves.
What is ‘In-Store advertising’?
In-store advertising is found in most retail outlets. Large high street retailers, global brands, grocery stores, clothing shops, and even smaller department stores are utilising advertising inside shops to encourage sales.
These advertisements can be on displays, banners, sales boards, posters, in snap frames or sales displays inside the store.
The science behind most of these displays is very complex, it focuses on the way consumers interact with and move around the store. For example, have you ever wondered why the fresh bread or flowers are at the front of the big retailers stores? It’s to encourage the smells that we all love to draw us inside.
The same thing happens when most retailers have their essentials like milk, eggs and bread dotted around the store, usually at the back, to encourage you to walk past other things you might buy.
Again, have you ever wondered why there are lots of easily consumed sweets, water and drinks at the till? Whilst you’re standing there waiting, it’s easy to pick up something which is why retailers strategically place these sorts of items at the end of the customer journey on the off chance you may purchase the product.
Why Use In-Store Marketing?
In-store advertising is a way to reach consumers while they are waiting in line as well as an inexpensive strategy when compared with other forms of promotion.
The main reason why retailers use this and other strategies is of-course to encourage and increase sales; it’s their prerogative after all.
How Are Retailers Using In-Store Advertising?
Retailers are constantly searching for new ways to influence their consumers to purchase more of their product.
They have found a way to incorporate in-store advertising into their marketing strategies, which is doing wonders for increasing the sales of the retailer.
In the UK alone, the retail market reached an estimated £3.5 trillion in 2021, so adding only a few tenths of a percent to that margin will make a huge difference to profits. Retailers want to increase that number and they know that they can only do this by investing heavily in their marketing strategy, a large proportion of which is in-store.
What Effect Does it Have on Customers Buying Behaviour?
When customers are exposed to advertising in brick-and-mortar stores, they are more likely to purchase items.
This effect is stronger for ads that feature products and promotions that fit with their personality.
For example, if a person sees an ad featuring a product that they would usually buy, they are more likely to purchase it than if they see an ad featuring a product that doesn’t match their personality.
This, along with strategies like buy one get one free and discounts on multi-buys etc are designed to get the consumer to buy more of the product than they would have originally thought.
Most retailers rely on in-store advertising to influence how consumers spend their money and purchase items.
There are many powerful tactics that retailers use to influence purchasing decisions. One of the most powerful is in-store advertising. Research has shown that people are more likely to buy from a retailer that advertises because it gives them a sense of security and reassurance.
This can have a big effect on impulse purchases in store, especially when there is already a certain level of trust. When an ad has been placed, shoppers tend to forget about their impulse, giving them time to think about whether or not they really need what’s advertised.
Ultimately in-store advertising is a great way to drive sales, it’s used by all high street retailers to increase footfall and revenue.