Survey reveals UK retailers plan increased investment in targeted advertising campaigns to fight competition, broaden market share and drive sales in their stores
UK retailers were in unanimous agreement over their need to adapt and broaden market focus to drive growth by 2020 when polled in a recent survey.
Despite current economic pressures, over half of UK retailers questioned in a survey conducted by market researcher Coleman Parkes
were optimistic that their budgets for instore point-of-sale (PoS) advertising would increase substantially during the next few years.
Communicating offers to customers instore
20|20 Vision Survey interviewed 500 retail brand and marketing managers across the five largest European economies – the UK, Germany, France, Italy and Spain – to evaluate the retail industry’s use of instore print and digital PoS signage today, and how it will change to support their business goals.
The survey found that instore retail advertising across Europe, and especially in the UK, is set for major change as companies operate in an increasingly competitive market. The need to change business direction to expand into mass, specialist or regional markets and to target new socio-economic groups is the key challenge facing UK retailers today. As a result, the survey found that retailers plan to implement highly focused instore promotional campaigns that use a mix of print and digital signage to accurately target customers by age, gender and product value.
While there is an expected major increase in PoS advertising budgets, in the future retailers indicated they would be looking for increased efficiency and control, reduced costs, better evaluation of campaign results and a greater return on investment.
Getting return on digital PoS investment
“The research findings are interesting and certainly echo the trends we are already experiencing in the sector,” commented James Henry, head of retail at Intermarketing Agency
. “As a retail marketing agency our focus has always been on providing the best possible PoS solutions based on our clients’ needs, brands and budgets and having a view on return on investment (ROI)."'
Henry reported that the company has already started to see significant growth in digital PoS. "This is enabling us to deliver highly targeted and tactical campaigns that we can tailor based on targets, sales and seasonality," he said.
He added that face recognition, proximity sensors, footfall tracking and many other advances make digital PoS increasingly well targeted and effective. "Plus, with its fast turnaround and low cost, it allows us to deploy campaigns quickly and cost effectively," Henry explained. "Our instore campaigns are always supported by printed PoS that enhances the experience and provides an ‘always on’ brand message regardless of the digital element. PoS can help enhance the retail experience and drive an emotional brand connection, whilst also delivering a more rational product offer message, which is key at that zero moment of truth – the point where a purchase decision is made.”
Select promotional media carefully
Nick White, Epson professional graphics business manager, said both print-based and digital PoS media will play important roles in retailers’ ongoing efforts to develop customer relationships and drive increased sales.
“The Epson 20|20 Vision survey shows how UK retailers are planning to diversify to protect their business and expand over the next few years," White said. “While there is an expected increase in PoS budgets, business leaders will demand higher ROI and increased efficiencies, demanding careful selection and deployment of promotional medium."