Pilot Study: In-Store Media
Can Finally Be Measured
By James Tenser
Shopper marketing has a new yardstick for measuring in-store media audiences. A group of prominent companies calling themselves the In-Store Metrics Consortium has unveiled results of a pilot study that could eventually shake up the marketing mix for CPG companies.
The resultant model was described as an “in-store GRP” by study backers, who presented the outcome with some fanfare at the In-Store Marketing Expo in Chicago in late September. Participants said the new measurement tool has the potential to change the way brands allocate media mix spending between traditional ad media and in-store channels.
“For marketers, the impact of establishing a reliable in-store metric is gigantic,” said Jim Stengel, global marketing officer at Procter & Gamble, one of the major backers of the research. “We’re confident we now can have an in-store tool to better assess shopper traffic
and reach.”
The collaborative effort dubbed, Pioneering Research for an In-Store Metric (P.R.I.S.M.), involved six brand marketers, four large retailers, and one of the nation’s largest media buying firms in a study that measured consumer traffic in 64 retail categories in 10 food, drug and mass stores located in Atlanta and Portland, Ore. The researchers used infrared sensors to track people’s movements past strategic locations within the test stores, and converted the measurements into audience data.
Sponsoring manufacturers include Procter & Gamble, The Coca-Cola Company, The Walt Disney Company, Kellogg's, Miller Brewing Company and 3M Corporation, all of which have a strong interest in substantiating the value of their in-store marketing investments. Supporting retailers are Albertsons, Kroger, Walgreen’s and Wal-Mart, all of which presently host some kind of in-store advertising media in their stores. Starcom/MediaVest USA, a leading advertising media firm that counts P&G and many other brand marketers among its client base, provided research support.
The sixth manufacturer supporting the pilot study, 3M Corp., may have had a second type of interest in the work of the group. In addition to the consumer products it sells at retail, it acquired a digital signage company, Mercury Online Solutions, last year, and so is positioned to be a supplier of in-store advertising services.
The pilot study results were introduced at the In-Store Marketing Expo in Chicago by Peter Hoyt, executive director of the In-Store Marketing Institute, which assembled the consortium and coordinated the study. He was accompanied by Stengel of P&G as well as Steven Quinn, senior VP marketing at Wal-Mart, and Laura Desmond, CEO of Starcom/MediaVest USA, a unit of the Publicis advertising group.
Hoyt explained that the study focused on the question of measuring ad reach in store and the creation of an in-store equivalent of gross rating points. “How do we come at the equation of what constitutes an unduplicated impression?” he said, adding that the consortium began its work with three hypotheses:
1. Sales are highly related to store traffic.
2. The conditions that govern this relationship can be modeled or some can be safely ignored.
3. Highly accurate chain-wide projections are possible by using this metric and data from a limited number of sample stores.
For the pilot study, infrared sensors were set up in several aisle, racetrack, entrance and exit locations in each store, where they could count the number of people passing by various categories of interest throughout the store. Because this was an unproven method, the infrared counters were validated with 70 hours of direct observation by human researchers. The researchers also conducted manual audits to confirm that in-store displays or media were in place according to plan.
“This was to make certain the display or sign or whatever marketing message we are checking on was actually there,” Hoyt said.
The researchers then paired POS data from the stores with the in-store traffic data and examined the results for all 64 categories across a variety of criteria including:
- By category – items, basket size, and dollar sales
- By store type – items, basket size and dollart sales
The group used the traffic and POS data to develop a formula that aims to predict how many unique shoppers will pass a given spot in a store at a specific time. In essence, it says that an in-store GRP is the product of the in-store traffic count multiplied by the rate of compliance (implementation of the in-store promotion) and a factor that eliminates duplicated impressions.
“This gives us a clearer picture of how in store media fit into overall marketing plans,” said Laura Desmond of Starcom/MediaVest. “Its accountability provides strategic planners and media investors with the ability to measure the effectiveness of in store marketing like never before.”
Hoyt said that a planned next phase of study would be much larger, covering many more categories, over a longer time frame and wider geographies. He called for more retailers and brand marketers to participate, and said the group was seeking cooperation from a syndicated data provider, like ACNielsen, IRI or Arbitron.
“This measurement model could only have been achieved with the unprecedented cooperation among consortium member marketers and retailers,” he said.
SignStorey In-Store Media
Engages Shoppers: Nielsen
Consumers are engaged and influenced by the content and advertising from SignStorey, a Fairfield, Conn.-based provider of
in-store media networks to grocery stores.
That’s the result of a new study by Nielsen Media Research. It is
the first time that Nielsen has provided an audience measurement service for an in-store media network in supermarkets.
According to the Nielsen study, SignStorey’s 1,124 grocery store network (there are now 1,350 stores) attracted a gross potential audience of some 57 million adult shoppers during a 28-day flight, spending an average of almost 24 minutes shopping. More than three of four (76%) of those people shopped or walked through the meat and/or produce sections, specifically where the SignStorey screens were placed, and spent an average of nine minutes there.
Also, almost 22 million shoppers (38%) looked at, watched or listened to SignStorey screens. Nielsen also reported that SignStorey provides an unduplicated audience of nearly 9.5 million individuals who see a screen an average of 2.3 times during the course of four weeks.
“This research is very exciting, confirming active shopper engagement and providing the advertising community with the metrics they need to effectively utilize in-store media,” said Jim Spaeth, founding partner of Sequent Partners, a brand and media metric consultancy, and immediate past president of the Advertising Research Foundation.
Other study highlights:
- More than three-quarters (77%) of all viewers agreed that SignStorey was an easy way to learn about new products.
- Two-thirds (68%) agreed that SignStorey would influence their decision to buy the advertising product in the future.
- Two-thirds (66%) agreed it would make them think more positively about the product advertised.
“In-store television is maturing as an advertising medium and getting more widespread attention than every before,” said Beth Corbett,
vice president of New Media Services for Nielsen Media Research.
SEPTEMBER 2006
General Mills Unveils Initiatives
For Hispanics and African-Americans
General Mills has launched two multicultural marketing platforms to appeal to Latino and African-American consumers. The programs consist of in-store and out-of-store components.
“As demographics continue to shift, it's important that our
marketing efforts appeal to the growing consumer segments,” said Rudy Rodriguez, the company’s multicultural marketing director. “Serving Up Soul and Que Rica Vida will provide consumers with much-needed, relevant lifestyle information, expert advice, and delicious, convenient recipes -- all things general market consumers have come to expect from our company. Today we are excited to offer programs with even broader multicultural appeal.”
Que Rica Vida -- translated "What a Rich and Wonderful Life" --
is the company's newly launched Hispanic initiative. The eight-month-long promotion targets Hispanic women in California, Florida, and the Southwest. In-store marketing includes a giveaway of a Betty Crocker cookbook to shoppers who spend at least $6 on participating products; shipper displays and endcaps; and a free magazine in Spanish that will contain lifestyle articles as well as recipes developed by the Betty Crocker Kitchens, coupons, and expert tips on food preparation and nutrition. Almost 2 million
copies of Que Rica Vida magazine will be mailed to consumers
and given away at thousands of in-store promotion events in top Hispanic markets.
Serving Up Soul, an African-American marketing campaign, aims to increase the relevance of General Mills' products among African-American women. The initiative is part of a multi-brand strategy designed to enhance the company's affinity with African-American consumers, leveraging brands such as Honey Nut Cheerios, Yoplait, Pillsbury, and Pop Secret, and will provide consumers with original recipes from the Betty Crocker Kitchens.
Through Serving Up Soul, General Mills will continue to broaden its relationship with former-model-turned-restaurateur and lifestyle expert B. Smith. Appearing in a series of 10 radio advertisements and five mini-magazines inserted in Essence magazine, Smith will be the spokeswoman for the campaign. She will also be featured on the initiative's new Web site, www.Servingupsoul.com, and will provide consumers with a seasonal newsletter featuring cooking tips, lifestyle content, and entertaining suggestions. Additionally, Serving Up Soul will conduct a contest this fall to search for an amateur lifestyle expert.
Meanwhile, the Que Rica Vida initiative will execute a community and public relations program in Houston, Los Angeles, and Miami. General Mills is joining with noted muralist Xavier Cortada to sponsor a collaborative community mural project. Executed in partnership with community-based, social service organizations in each city, the project allows local children to submit drawings for inclusion in a mural and compete for cash prizes.
The murals will be exhibited in prominent public spaces. Each community partner will receive a $10,000 donation from General Mills and several Ingles sin Barreras English-learning kits. These Ingles sin Barreras kits will be used to enrich existing programs and services at each center. Entry forms will be available at participating retailers and the local partnering community centers.
