October 31, 2007

The Right Approach to In-Store Marketing

By George Anderson

As a piece on Forbes.com points out, marketers are directing a greater amount of dollars to in-store advertising vehicles in an effort to more effectively influence consumer purchasing patterns. What isn’t clear with the increasing variety of in-store vehicles available is what is most effective in actually achieving the goal set by brands and retailers alike.

The article’s authors, Marc E. Babej and Tim Pollak, partners at the marketing strategy consulting firm of Reason Inc., provided a laundry list of the various forms of in-store advertising including shelf talkers, in-store radio, video, signage on shopping carts, etc.

According to the authors, many see shopping carts as being the vehicle in the best position to motivate consumers to make purchases. They referenced a recent visit to the In-Store Marketing Expo and the wide array of carts making use of video for this purpose. While a number of the “video-enhanced” systems have been tested, cost has been one of the factors limiting the expanded use of the technology.

One company, according to Messrs. Babej and Pollak, has developed a middle-of-the-road tech approach that makes it more dynamic than static signage in carts without the expense associated with video-based systems.

Modstream Inc. has introduced a text-based system that delivers messages to a screen encased in a hard plastic case positioned where the cart’s handle would normally go. The system is currently in use in Home Depot stores in eight states.

Doug Chertok, CEO of Modstream Inc., believes the texting approach already has an audience familiar and comfortable with the communication form and the low-cost structure is ideal for retail. “Google has proven the efficacy of delivering simple but relevant text-based ads to people while they are shopping,” he said.

The authors are not ready to predict success for Modstream or another company. They conclude: “For marketers, the opportunity to communicate with shoppers dynamically–between their hands, while they’re shopping–is too good to resist. And for margin-stressed retailers, becoming purveyors of valuable new media space could be a profitable new frontier.”

Discussion Questions: Do you see shopping carts as valuable media space? Where do you see the best opportunities in terms of use of technology for retailers and marketers to influence consumer purchases with shopping carts? What are your thoughts on the potential of cart text messaging system briefly described in the Forbes.com piece?

Discussion Questions

Poll

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Stuart Armstrong
Stuart Armstrong

When we talk about retailers, the conversation–and the solutions–typically gravitate to the grocery, drug and mass merchandise channels; all of which (drug to a lesser extent) have shopping carts. But, the majority of retailing environments do not have shopping carts.

Also, having shopping cart messaging suggests a one-on-one communication which requires a more sophisticated interplay between the message and consumer profiles…or loyalty card information–not easy to do. This needs to relate position to products on the shelf, so maintaining up to date store layouts and planograms is a requirement as well.

While I am not opposed to digital messaging on carts, I think it is a tough business model and potentially too limiting (not applicable for most retailers), too complex and too expensive.

Properly orchestrated stationary digital displays that are designed to avoid media clutter at the department and category level can deliver the benefits without the previously mentioned obstacles. Also–and this is important–personal mobile phones (moving quickly to larger and video powered screens) can interact with the digital screens enabling retailers and their brands to get that personal information that is even better than cart based messaging. Oh, and the consumer shoulders the capital expense of the phone.

jack flanagan
jack flanagan

Sounds like a ‘solution’ looking for a problem.

Laura Davis-Taylor
Laura Davis-Taylor

Shopping cart advertising is one of many in-store marketing options and it, along with the others, indeed faces the measurement/accountability challenges. There are many wonderful efforts currently happening to crack this store measurement nut. And, as technology evolves, we will have tools that will show us–in real time–what people are looking at, for how long and what they do as a result. It’s the web measurement model come to the brick and mortar store.

However, this is going to take time. And until then, we as an industry would do ourselves a lot of good by UNITING in this store media measurement challenge for all consumer-facing media vehicles. There’s a lot to be gained by looking at how the Internet Advertising Bureau did this successfully for their medium.

Another point: “becoming purveyors of valuable new media space could be a profitable new frontier” is either an opportunity or a major danger depending on the strategic approach. As a consultant in this space, we see both and, frankly, it’s scary that so many folks look at this as strict media profit opportunity. What we don’t need is a “look at me, look at me!” media circus in stores. What we do need is a better store experience for shoppers…and the tools to know for sure if what we’re doing to support this is right on or not.

Mel Kleiman
Mel Kleiman

Everyone looks for technology to solve the problem and increase inside sales. Why do we quit doing the simple things that have proven to work over and over? Let’s first make sure we provide quality employees who provide quality service.

It is amazing to me that if I put the right person behind a convenience store counter, the sales on the shift that person works will go up by better then 17%.

Apple is working hard at hiring great people and giving them the training, product and great culture to work in and look at the numbers they are producing out of their stores. If they could do it with technology, do you think they would hire all of those employees?

Let’s get the basics done before we look for the next fad.

Dan Raftery
Dan Raftery

Shopping carts get beat up. They even get stolen for several neighborhood applications. Imagine their appeal with added electronics. Also–how many designs are out there? Lots of physical challenges for these folks, which I’m sure they’ve addressed.

The psychological barriers, however, may be more insurmountable. Store shelves are visually confusing before any signs go up. Add in the mix of talkers, strips, danglers, etc and you’ll soon be debating clutter. I’m pretty sure that taking shopper’s eyes off the shelf is less than optimal.

Now, if I could use the handle device when I want to–say as an item locater, or a nutritional information source, maybe a recipe–I’m on it.

The concept here seems misguided. Influencing shoppers through forced messaging has never been very successful and is now contaminated like pop-ups and other disruptive online techniques. I think a more successful concept is geared toward shopper efficiency, or shopping operations, if you will. Marketing would take a back seat, but still be in the car(t).

Mark Hunter
Mark Hunter

Shopping carts are not new in terms of being able to convey an advertising message. Yes, there are new technologies emerging; however, we can’t predict any single new in-store advertising medium is going to work more than another. This is due to the wide expectations of shoppers and retailer alike. We may very well see one medium work well with one retailer and fail miserably with another. The underlying piece to in-store marketing is flexibility in using whatever medium is right for a particular retailer and even more so the particular consumer segment shopping that retailer.

David Biernbaum

Shopping carts have been used off and on again for advertising, but usually without much long term success because after a while, the maintenance is poor, and because shopping carts are abused by heavy use, weather, kids, etc. We need to be cognizant of not making the shopping experience too annoying for the consumer. Adding electronic or technology induced advertising will likely be pretty annoying, and eventually tuned out. I’m not going to roll with this concept.

Susan Rider
Susan Rider

Have you driven around the store parking lots and seen the number of shopping carts in the ditch and around the peripheral area? Most shoppers don’t look down at the shopping cart handle–especially if there is a child sitting in the seat!

This advertising medium, unless it is free, would be costly for the return on investment. Let’s get creative! There are many in-store ways to attract the shopper and with technology why not go high tech? Ideas abound! For instance, give each shopper a headset that can be tuned into their preference of music, and between each song is a short special announcement. They turn the headsets in to the cashier at the end of their shopping experience. Or have a large computer screen in every area that will map what you are looking for (like mapquest but with the store layout). This screen could also give you specials in the area with information on label contents, etc. The potential is endless. How many times has a retailer lost a sale because the consumer could not find the item–or someone to ask for it?

Anne Howe
Anne Howe

I support David’s comments on maintenance and weather issues. However, if there really was a cart application that shopper research confirmed to be useful to shoppers and had real pay-out for the retailers, I think manufacturers would support appropriate content (tested and refined to be “right” for shoppers) and retailers might be more inclined to maintain the carts and technology. I propose more manufacturers get involved in testing and learning, and appreciate the vendors who are allowing testing to happen at very reduced costs. The last thing we all want to do is drive shoppers out of the stores as we all rush headlong into another communications opportunity that those we are trying to target want nothing to do with.

Dan Desmarais
Dan Desmarais

Shopping Cart advertising should stay where it’s always been–cardboard inserts that get updated every month or two.

If retailers want to get text messages into the hands of the consumers, they should visit some UK retailers who have their best shoppers sign out a hand-held scanner to process their order while they shop. This gives the opportunity to change the messages as items are scanned so the marketing is very specific to each consumer. The shopper then returns the scanner when they pay and the theft of the electronics is limited.

In-store electronic signs that dynamically updated by time of day and select consumers in the store is more likely a greater payback than text-to-cart solutions.

Kunal Puri
Kunal Puri

While we are at it, can I also request that my shopping cart have docks for my iPod, Blackberry and cellphone and yes, a keyboard with the screen for me to surf the net and obviously a digicam for me to click pix of the products…

Like someone above said–its more of a solution looking for a problem….

George Anderson
George Anderson

I realize that more people are texting these days but when I’m pushing the cart around, I’m looking straight ahead or to the shelves on the left or right. Not much time spent looking down between my hands. Maybe retailers and brands would be better off looking to communicate a little less in the store and instead send a single message that actually offers deals on products I already buy or have asked for.

William Boyle
William Boyle

Just because you can invent it, doesn’t mean that shoppers will either want it or pay any attention to it. We went through this recently with RetailWire discussions and the reaction to digital in-store ads. Unless the shopper perceives a benefit, its just more clutter.

James Tenser

The smart money in our industry already know that in-store messages move the needle if (and only if) they are in near-proximity to the promoted products. You can put a digital device on every shelf to achieve this goal–or you can move the message delivery system around the store with the shopper.

I differ strongly with the “solution in search of a problem” quip. As ever, “The Retail Store is a Communications Environment for Brand Messages” (my firm’s copyrighted slogan). The skepticism springs, I think, from attempts to force-fit broadcasting’s advertising and media paradigms into the Shopper Media mold.

Let me try to add clarity once again: Don’t let the glowing screen fool you. This is not TV. Shopper media substitute proximity for duration of exposure. In other words, a 2-3 second message delivered 3 feet from the product is worth 1,000 times a 20-30 second message delivered 3 aisles down.

We can take this further: An exposure provably linked to an actual sale on the same shopping trip is worth 100 times that. Times another 10 if you can link the action to loyal behavior.

Yes–all of this flies in the face of the advertising models we know and love. It shows why in-store GRPs will not be adequate for establishing the value of shopper media. To all my friends in the ad game I say, take heart! The opportunity at retail is of monumental proportions. The benefits will accrue to those who are prepared to see it for what it truly is.

Mark Burr
Mark Burr

Forget the technology from the aspect of the cart itself. Consider innovation in the actual cart. It’s already been mentioned that simple things like a docking station for an iPod would be desirable. In stores, even such things as cup holders really produce an unmeasurable ROI, yet reap boundless customer appreciation and satisfaction points.

Take a look at the cart itself. In my years in the industry, the basics of the shopping cart haven’t changed much. Sure, there may be some changes in materials, but overall design has changed little in decades. Recently introduced into stores where I am associated is a two-tiered cart that replaces the carry basket and actually increases purchases. That’s innovation. Building something unique and different for the customer should be the intent.

Adding expensive technology to an already antiquated means of gathering product is plainly unexciting to me. Take on a new shape, add shelves, create a means of providing additional unique places for breads and fragile product–that would excite the customer. Another forced media interaction isn’t what they’re looking for in the supermarket. They’re looking for excitement in the products you sell, not a further distraction.

To say that I am not sold on the idea is an understatement. Nothing mentioned even remotely contributes to the potential for creating excitement about food. That is where the retailer’s investment belongs–not in unnecessary, frivolous technology.

M. Jericho Banks PhD
M. Jericho Banks PhD

My doctoral dissertation addressed in-store marketing at more than 7,000 7-Eleven stores while I was VP Advertising for Southland Corporation. Later, I was in charge of a full-chain test of a shopping cart video system while VP Advertising at a 200-store, privately-owned supermarket chain (it failed abysmally). I’ve had a bit of experience, and yadda, yadda, yadda.

Research continues to report that 70% of purchase decisions in supermarkets are made at the shelf. Shopping cart ads are a regular bidness as a result, but what’s up with all of those real-estate ads? Can’t buy that off the shelf.

Consider shopping cart priorities among customers. What do they look for first? It’s wobbly wheels, and it’s definitely not child safety or advertising. The number one injury to children in supermarkets is getting their fingers caught under the wheels while riding in the bottom of a shopping cart. Some stores recently introduced disposable handwipe stations near their cart collection areas. Most customers thought the handwipes were for their own personal sanitation. They didn’t realize that the handwipes were primarily for sanitizing the handles of the shopping carts, which kids tend to teeth on while riding in the carts’ child seats.

Poor communication, plain and simple. Shopping carts are an anomaly. Depending on the checkstand configuration and the average height of the shoppers, they vary. Carts (buggies) are a utility, like electricity and water. Nobody really cares about their configurations or their ads.

Odonna Mathews
Odonna Mathews

In my opinion, consumers are busy when shopping in the store and don’t have time to focus on a lot of in-store ads. Another text message probably wouldn’t make a difference in what consumers buy.

Technology providing pre-orders at deli or bakery, recipes with the store locations of ingredients, an overall store directory and a user friendly list of items on sale might be appealing. But carts serve a basic purpose–to get consumers to the checkout quickly!

Jon Kramer
Jon Kramer

The challenge is the vast majority of category and brand decisions are made at the shelf, so in-store messaging is critical. The problem with much in store media is it has not been conceived with a clear shopper value proposition in mind.

If executed properly, shopping carts provide an optimal communications solution in that they are an integral part of the shopping trip, and do not require a behavior change. Information such as store specials, meal solutions, shopping lists etc. can be used as a hook to engage the shopper.

Once they are engaged, delivering appropriate messaging, i.e. brand communications, becomes much more relevant. With available technology, measuring volume and sales impact is easy to do.

Finally, with the ruggadization of technology today, creating a cart that braves the elements is actually quite simple.

Mark Lilien
Mark Lilien

If the shopping cart screen had a built-in scanner, shoppers could scan everything they put into the cart and see a running total of what they’re spending, the total calories, fat, etc. The screen ads could relate to what the shopper puts into the cart, and if the screen had a printer, could dispense coupons on the spot, instantly. If the technology is low-cost, the advertising revenue will be profitable, regardless of cart damage and non-use. Those cardboard real estate ads are profitable because cardboard is low-cost technology, so the price to the advertiser is also low. No ad medium needs to be very effective if it’s cheap enough.

Rob Wolf
Rob Wolf

Shopping cart video technology fails the simple ROI test; the CPM rate required for capital payback is just too high. Also, as many as 50% of typical grocery shopping trips don’t use a cart. And, finally, the data I’ve seen on cart theft is really high–up to a cart per store every other day for the major grocery chains. For chains like Albertsons or Safeway, this alone would make video cart-based advertising too expensive. Imagine putting screens on shopping carts and losing several hundred carts in a day!

20 Comments
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Stuart Armstrong
Stuart Armstrong

When we talk about retailers, the conversation–and the solutions–typically gravitate to the grocery, drug and mass merchandise channels; all of which (drug to a lesser extent) have shopping carts. But, the majority of retailing environments do not have shopping carts.

Also, having shopping cart messaging suggests a one-on-one communication which requires a more sophisticated interplay between the message and consumer profiles…or loyalty card information–not easy to do. This needs to relate position to products on the shelf, so maintaining up to date store layouts and planograms is a requirement as well.

While I am not opposed to digital messaging on carts, I think it is a tough business model and potentially too limiting (not applicable for most retailers), too complex and too expensive.

Properly orchestrated stationary digital displays that are designed to avoid media clutter at the department and category level can deliver the benefits without the previously mentioned obstacles. Also–and this is important–personal mobile phones (moving quickly to larger and video powered screens) can interact with the digital screens enabling retailers and their brands to get that personal information that is even better than cart based messaging. Oh, and the consumer shoulders the capital expense of the phone.

jack flanagan
jack flanagan

Sounds like a ‘solution’ looking for a problem.

Laura Davis-Taylor
Laura Davis-Taylor

Shopping cart advertising is one of many in-store marketing options and it, along with the others, indeed faces the measurement/accountability challenges. There are many wonderful efforts currently happening to crack this store measurement nut. And, as technology evolves, we will have tools that will show us–in real time–what people are looking at, for how long and what they do as a result. It’s the web measurement model come to the brick and mortar store.

However, this is going to take time. And until then, we as an industry would do ourselves a lot of good by UNITING in this store media measurement challenge for all consumer-facing media vehicles. There’s a lot to be gained by looking at how the Internet Advertising Bureau did this successfully for their medium.

Another point: “becoming purveyors of valuable new media space could be a profitable new frontier” is either an opportunity or a major danger depending on the strategic approach. As a consultant in this space, we see both and, frankly, it’s scary that so many folks look at this as strict media profit opportunity. What we don’t need is a “look at me, look at me!” media circus in stores. What we do need is a better store experience for shoppers…and the tools to know for sure if what we’re doing to support this is right on or not.

Mel Kleiman
Mel Kleiman

Everyone looks for technology to solve the problem and increase inside sales. Why do we quit doing the simple things that have proven to work over and over? Let’s first make sure we provide quality employees who provide quality service.

It is amazing to me that if I put the right person behind a convenience store counter, the sales on the shift that person works will go up by better then 17%.

Apple is working hard at hiring great people and giving them the training, product and great culture to work in and look at the numbers they are producing out of their stores. If they could do it with technology, do you think they would hire all of those employees?

Let’s get the basics done before we look for the next fad.

Dan Raftery
Dan Raftery

Shopping carts get beat up. They even get stolen for several neighborhood applications. Imagine their appeal with added electronics. Also–how many designs are out there? Lots of physical challenges for these folks, which I’m sure they’ve addressed.

The psychological barriers, however, may be more insurmountable. Store shelves are visually confusing before any signs go up. Add in the mix of talkers, strips, danglers, etc and you’ll soon be debating clutter. I’m pretty sure that taking shopper’s eyes off the shelf is less than optimal.

Now, if I could use the handle device when I want to–say as an item locater, or a nutritional information source, maybe a recipe–I’m on it.

The concept here seems misguided. Influencing shoppers through forced messaging has never been very successful and is now contaminated like pop-ups and other disruptive online techniques. I think a more successful concept is geared toward shopper efficiency, or shopping operations, if you will. Marketing would take a back seat, but still be in the car(t).

Mark Hunter
Mark Hunter

Shopping carts are not new in terms of being able to convey an advertising message. Yes, there are new technologies emerging; however, we can’t predict any single new in-store advertising medium is going to work more than another. This is due to the wide expectations of shoppers and retailer alike. We may very well see one medium work well with one retailer and fail miserably with another. The underlying piece to in-store marketing is flexibility in using whatever medium is right for a particular retailer and even more so the particular consumer segment shopping that retailer.

David Biernbaum

Shopping carts have been used off and on again for advertising, but usually without much long term success because after a while, the maintenance is poor, and because shopping carts are abused by heavy use, weather, kids, etc. We need to be cognizant of not making the shopping experience too annoying for the consumer. Adding electronic or technology induced advertising will likely be pretty annoying, and eventually tuned out. I’m not going to roll with this concept.

Susan Rider
Susan Rider

Have you driven around the store parking lots and seen the number of shopping carts in the ditch and around the peripheral area? Most shoppers don’t look down at the shopping cart handle–especially if there is a child sitting in the seat!

This advertising medium, unless it is free, would be costly for the return on investment. Let’s get creative! There are many in-store ways to attract the shopper and with technology why not go high tech? Ideas abound! For instance, give each shopper a headset that can be tuned into their preference of music, and between each song is a short special announcement. They turn the headsets in to the cashier at the end of their shopping experience. Or have a large computer screen in every area that will map what you are looking for (like mapquest but with the store layout). This screen could also give you specials in the area with information on label contents, etc. The potential is endless. How many times has a retailer lost a sale because the consumer could not find the item–or someone to ask for it?

Anne Howe
Anne Howe

I support David’s comments on maintenance and weather issues. However, if there really was a cart application that shopper research confirmed to be useful to shoppers and had real pay-out for the retailers, I think manufacturers would support appropriate content (tested and refined to be “right” for shoppers) and retailers might be more inclined to maintain the carts and technology. I propose more manufacturers get involved in testing and learning, and appreciate the vendors who are allowing testing to happen at very reduced costs. The last thing we all want to do is drive shoppers out of the stores as we all rush headlong into another communications opportunity that those we are trying to target want nothing to do with.

Dan Desmarais
Dan Desmarais

Shopping Cart advertising should stay where it’s always been–cardboard inserts that get updated every month or two.

If retailers want to get text messages into the hands of the consumers, they should visit some UK retailers who have their best shoppers sign out a hand-held scanner to process their order while they shop. This gives the opportunity to change the messages as items are scanned so the marketing is very specific to each consumer. The shopper then returns the scanner when they pay and the theft of the electronics is limited.

In-store electronic signs that dynamically updated by time of day and select consumers in the store is more likely a greater payback than text-to-cart solutions.

Kunal Puri
Kunal Puri

While we are at it, can I also request that my shopping cart have docks for my iPod, Blackberry and cellphone and yes, a keyboard with the screen for me to surf the net and obviously a digicam for me to click pix of the products…

Like someone above said–its more of a solution looking for a problem….

George Anderson
George Anderson

I realize that more people are texting these days but when I’m pushing the cart around, I’m looking straight ahead or to the shelves on the left or right. Not much time spent looking down between my hands. Maybe retailers and brands would be better off looking to communicate a little less in the store and instead send a single message that actually offers deals on products I already buy or have asked for.

William Boyle
William Boyle

Just because you can invent it, doesn’t mean that shoppers will either want it or pay any attention to it. We went through this recently with RetailWire discussions and the reaction to digital in-store ads. Unless the shopper perceives a benefit, its just more clutter.

James Tenser

The smart money in our industry already know that in-store messages move the needle if (and only if) they are in near-proximity to the promoted products. You can put a digital device on every shelf to achieve this goal–or you can move the message delivery system around the store with the shopper.

I differ strongly with the “solution in search of a problem” quip. As ever, “The Retail Store is a Communications Environment for Brand Messages” (my firm’s copyrighted slogan). The skepticism springs, I think, from attempts to force-fit broadcasting’s advertising and media paradigms into the Shopper Media mold.

Let me try to add clarity once again: Don’t let the glowing screen fool you. This is not TV. Shopper media substitute proximity for duration of exposure. In other words, a 2-3 second message delivered 3 feet from the product is worth 1,000 times a 20-30 second message delivered 3 aisles down.

We can take this further: An exposure provably linked to an actual sale on the same shopping trip is worth 100 times that. Times another 10 if you can link the action to loyal behavior.

Yes–all of this flies in the face of the advertising models we know and love. It shows why in-store GRPs will not be adequate for establishing the value of shopper media. To all my friends in the ad game I say, take heart! The opportunity at retail is of monumental proportions. The benefits will accrue to those who are prepared to see it for what it truly is.

Mark Burr
Mark Burr

Forget the technology from the aspect of the cart itself. Consider innovation in the actual cart. It’s already been mentioned that simple things like a docking station for an iPod would be desirable. In stores, even such things as cup holders really produce an unmeasurable ROI, yet reap boundless customer appreciation and satisfaction points.

Take a look at the cart itself. In my years in the industry, the basics of the shopping cart haven’t changed much. Sure, there may be some changes in materials, but overall design has changed little in decades. Recently introduced into stores where I am associated is a two-tiered cart that replaces the carry basket and actually increases purchases. That’s innovation. Building something unique and different for the customer should be the intent.

Adding expensive technology to an already antiquated means of gathering product is plainly unexciting to me. Take on a new shape, add shelves, create a means of providing additional unique places for breads and fragile product–that would excite the customer. Another forced media interaction isn’t what they’re looking for in the supermarket. They’re looking for excitement in the products you sell, not a further distraction.

To say that I am not sold on the idea is an understatement. Nothing mentioned even remotely contributes to the potential for creating excitement about food. That is where the retailer’s investment belongs–not in unnecessary, frivolous technology.

M. Jericho Banks PhD
M. Jericho Banks PhD

My doctoral dissertation addressed in-store marketing at more than 7,000 7-Eleven stores while I was VP Advertising for Southland Corporation. Later, I was in charge of a full-chain test of a shopping cart video system while VP Advertising at a 200-store, privately-owned supermarket chain (it failed abysmally). I’ve had a bit of experience, and yadda, yadda, yadda.

Research continues to report that 70% of purchase decisions in supermarkets are made at the shelf. Shopping cart ads are a regular bidness as a result, but what’s up with all of those real-estate ads? Can’t buy that off the shelf.

Consider shopping cart priorities among customers. What do they look for first? It’s wobbly wheels, and it’s definitely not child safety or advertising. The number one injury to children in supermarkets is getting their fingers caught under the wheels while riding in the bottom of a shopping cart. Some stores recently introduced disposable handwipe stations near their cart collection areas. Most customers thought the handwipes were for their own personal sanitation. They didn’t realize that the handwipes were primarily for sanitizing the handles of the shopping carts, which kids tend to teeth on while riding in the carts’ child seats.

Poor communication, plain and simple. Shopping carts are an anomaly. Depending on the checkstand configuration and the average height of the shoppers, they vary. Carts (buggies) are a utility, like electricity and water. Nobody really cares about their configurations or their ads.

Odonna Mathews
Odonna Mathews

In my opinion, consumers are busy when shopping in the store and don’t have time to focus on a lot of in-store ads. Another text message probably wouldn’t make a difference in what consumers buy.

Technology providing pre-orders at deli or bakery, recipes with the store locations of ingredients, an overall store directory and a user friendly list of items on sale might be appealing. But carts serve a basic purpose–to get consumers to the checkout quickly!

Jon Kramer
Jon Kramer

The challenge is the vast majority of category and brand decisions are made at the shelf, so in-store messaging is critical. The problem with much in store media is it has not been conceived with a clear shopper value proposition in mind.

If executed properly, shopping carts provide an optimal communications solution in that they are an integral part of the shopping trip, and do not require a behavior change. Information such as store specials, meal solutions, shopping lists etc. can be used as a hook to engage the shopper.

Once they are engaged, delivering appropriate messaging, i.e. brand communications, becomes much more relevant. With available technology, measuring volume and sales impact is easy to do.

Finally, with the ruggadization of technology today, creating a cart that braves the elements is actually quite simple.

Mark Lilien
Mark Lilien

If the shopping cart screen had a built-in scanner, shoppers could scan everything they put into the cart and see a running total of what they’re spending, the total calories, fat, etc. The screen ads could relate to what the shopper puts into the cart, and if the screen had a printer, could dispense coupons on the spot, instantly. If the technology is low-cost, the advertising revenue will be profitable, regardless of cart damage and non-use. Those cardboard real estate ads are profitable because cardboard is low-cost technology, so the price to the advertiser is also low. No ad medium needs to be very effective if it’s cheap enough.

Rob Wolf
Rob Wolf

Shopping cart video technology fails the simple ROI test; the CPM rate required for capital payback is just too high. Also, as many as 50% of typical grocery shopping trips don’t use a cart. And, finally, the data I’ve seen on cart theft is really high–up to a cart per store every other day for the major grocery chains. For chains like Albertsons or Safeway, this alone would make video cart-based advertising too expensive. Imagine putting screens on shopping carts and losing several hundred carts in a day!

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