Reach & Recency: The Purchase-Frame-Of-Mind

Reach & Recency: The Purchase-Frame-Of-Mind

In previous posts, we have brought up the concept of “Purchase-Frame-of-Mind”. What does that mean to advertisers? Simply put, when people are shopping, they are more likely to be influenced by an advertisement. The most obvious use of this principle can be seen in the checkout lanes at grocery stores, Bed Bath and Beyond, Home Stores, TJ Maxx and Marshalls. They have shoppers snake through a maze of shelving stacked high with items just waiting for that unplanned purchase. Mall advertising works to overlay that strategy with a consumer’s daily journey by presenting an engaging ad for a product or service while a consumer is actively shopping. Research shows this can increase the potential for action on that type of advertising. Research also shows the average mall visitor makes at least two additional purchase related stops on their way home. As Julie Bernard wrote in an article for Forbes, “In addition to smart creative combined with data-informed decisions about place and time, brands must work to engage with consumers at moments that align with the right frame of mind.” Nielson reported on a study in which over 800 cross-media campaigns run across all verticals measured the volume of impressions and reach achieved by with those impressions. The study confirmed a well-established understanding of consumer behavior, reach and recency matter. “For many years, marketers have used recency theory (the belief that ads are most effective when they appear immediately before consumers are predicted to make a purchase) to gauge when to run their ads. Although theories come and go, the ability to implement recency theory has improved with the rise...

What Convenience Can Cost You

We all value convenience. It saves time, energy and often a few bucks. But like all things, convenience comes with a cost. When we buy products and services from local merchants and retailers, it has a multiplier effect spreading the dollars from that purchase out into our community. Those dollars support schools, jobs, services and programs that contribute to our quality of life. When we choose to resource those things online it brings a cost many of us may not expect. Online purchases export the multiplier benefit to another community where the online retailer resides. For example, a $100 purchase at a locally owned retailer returns $48 to the community through the multiplier effect. In some cases that impact can be as high as $68. Even if we make that same purchase at a retail chain, the return to the local community is $14 or more. When that purchase is made with an online retailer, the return to the community is at best $1. And that assumes the delivery person lives locally. In the Rochester community, retail trade comprises 11.7% of local employment, making it the third largest contributor to the area’s employment engine. There is no magic wand to replace that supporting pillar. In an interview with Forbes, Amy Hartzler from the Business Alliance for Local Living Economies states, “When we shop locally, more of our money stays local, so it has a direct positive impact on creating more jobs,’ she said. ‘Independent businesses create about two-thirds of private sector jobs. Every $10 million of spending at a local business creates 57 jobs, whereas the same spending at...
Which Retail Trend Are You Looking At?

Which Retail Trend Are You Looking At?

In retail, there is more than one trend at work. It just depends on which ones you are looking at. A recent report on retail trends and predictions published by Vend delivers some interesting insights. “Despite the doom and gloom being reported in certain retail sectors (i.e. department stores), we firmly believe that brick-and-mortar retail is alive and well. Traditional store formats may be on the decline, but innovative stores — ones that offer great shopping experiences — will continue to emerge. Industry data supports this. According to the National Retail Federation, data from the IHL Group shows ‘a net increase in store openings of over 4,000 in 2017. In fact, for each company closing a store, 2.7 companies are opening stores.'” One of the biggest hurdles new retailers face is the ability to connect with their customer audience.Retailers who embrace creative approaches to how they market themselves can maximize their investment in marketing. As Vend points out, “Advertising costs have never been lower, because of the power of social media. Independents can develop a following at a relatively low cost if they have a product or service that people are passionate about.” Opportunities for brick-and-mortar retail going forward also depends on the type of products a retailer focuses on. Vend’s report on 2018 Retail Industry Trends and Predictions states, “In 2018, the act of buying commodities (i.e. buying things because we HAVE to) will become less of a chore. Players like Amazon and subscription businesses will make this part of retail easier through offerings like auto-renewals, one-tap purchases, and same-day delivery. In other words, the “chore” or routine...
Nielson Reports Out-Of-Home Drives Mobile Online Search

Nielson Reports Out-Of-Home Drives Mobile Online Search

With the amount of money being invested in digital advertising, one might assume that digital drives more mobile search. Not so. Offline TV and OOH products like in-mall advertising prompt the greatest amount of online search activity. The Outdoor Advertising Association of America summarized the findings.  “According to the OOH Online Activation Survey, online activations including search, Facebook, Twitter, and Instagram activity generated by OOH indexes at about four times the expected rate given its relative ad spend. Nearly five in ten US adults (46%) have used Google, Bing, Yahoo, or another Internet search engine to look up infor­mation after seeing or hearing something advertised on a billboard, bus shelter, or other OOH format in the past six months. Nearly 40 percent have visited a Facebook page or posted a message on Facebook after seeing an OOH ad.”  “OOH’s connection to digital media is undeniable,” said OAAA’s Nancy Fletcher. “OOH campaigns boost online en­gagement more than other traditional media can. As digital ad spend increases, so does OOH’s, because it drives people in the real world online.” The website marketingcharts.com detailed the search percentages, showing how OOH even leads to engagement activity in millennial platforms like Instagram and twitter. Overall, In-Mall advertising is unique in the OOH toolbox because the people viewing the ads in the mall are already in the purchase frame-of-mind and more likely to be influenced by messages they see while they are there. Also, the average mall visit is 90 minutes with 30 minutes spent navigating the common spaces where advertisements are displayed. The key takeaway? Out-Of-Home and in-mall advertising drives nearly half of search...
Omni-Channel Marketing and Mall Advertising

Omni-Channel Marketing and Mall Advertising

Beneath the headlines about the retail apocalypse, many point to the demise of major household names like Sears as case in point. What they fail to mention is those same brands made little or no effort to understand the evolution of consumer behavior. Those same stories often fail to mention the efforts put in by other major brands anchoring many malls that are seeing new opportunities through Omni-channel marketing. Many retailers confuse Multi-channel marketing with Omni-channel marketing. John Bowden of Time Warner Cable described the difference very well: “Multi-channel is an operational view – how you allow the customer to complete transactions in each channel. Omni-channel, however, is viewing the experience through the eyes of your customer, orchestrating the customer experience across all channels so that it is seamless, integrated, and consistent. Omni-channel anticipates that customers may start in one channel and move to another as they progress to a resolution.  Making these complex ‘hand-offs’ between channels must be fluid for the customer.  Simply put, Omni-channel is multi-channel done right!” Daniel B. Kline writes in the Motley Fool, “Certainly, the current market has been an apocalypse for some chains, but the annual State of Retailing Online study from the National Retail Federation (NRF) and Forrester shows that consumers aren’t abandoning retail. Instead, they expect traditional and digital retailing to be intertwined.“ In his article Kline quotes Forrester Vice President Sucharita Kodali saying, “More brands plan to open stores versus close them this year, which proves that the physical retail store is not doomed as many think it is. Smart retailers understand that the two go hand-in-hand, but customer-obsessed retailers will...
Malls and the Brick-and-Mortar Evolution

Malls and the Brick-and-Mortar Evolution

A recent article in Forbes by Tom McGee titled “Retail Trends Taking Shape in 2018” examined the trends emerging in the evolution of the physical retail space. In his words it is “Inspiring”. He writes, “Retail centers are defying the skeptics and continuing to reconfigure themselves as consumer hubs for entertainment, education and fitness, alongside traditional shopping. Brands are remodeling stores to excite consumers. Online brands are recognizing the advantages of brick-and-mortar locations and continue to multiply their physical square footage (a nine-fold increase since 2012, according to one estimate).” For those who say the Rochester region lags behind the national trends, consider how our local malls have been building a new mix of experiences for years. The Rochester Area malls have been adapting by adding an increasingly broad range of retail, entertainment and lifestyle options for visitors. Among their tenant mix are family food and entertainment venues like Dave and Busters and indoor Go-Cart tracks like Pole Position in Marketplace Mall, community resources like the Department of Motor Vehicles and  World Gym at The Mall at Greece Ridge and a wide range of culinary experiences and exclusive retail spaces like the Apple Store at Eastview Mall. McGee is bullish on the direction our modern American town squares and major retailers are taking. “I expect even bolder changes this year and beyond. Stores will, of course, continue to focus on creating a powerful and lasting shopping experience, and technology will be at the center of that.” More importantly, those who embrace technology to broaden their marketing and enhance the experience for online and brick and mortar shoppers have the...
Rochester Area Malls Still Draw People

Rochester Area Malls Still Draw People

Despite the news, malls are not dying, at least the local ones are not. The Rochester malls are not replete with vacant spaces for rent, empty parking lots and declining visitors. In fact, the media rating books all point to healthy traffic. Consider this: Despite the onslaught of online, our Greater Rochester Area malls still draw a lot of visitors, both local and tourists. While the major rating companies only measure local residents for their data sets, we can see that the broader measure still adds up. For example, well established annual events like the Rochester Lilac Festival draw up to half a million visitors each year according the Democrat and Chronicle. The 2018 Xerox International Jazz Fest was reported to have more than 200,000 attendees. Between the Fairport Canal Days, Cornhill Arts Festival, Park Avenue Summer Arts Festival and a host of other annual arts and international events, the tourism impact on the Rochester region is considerable. Add to that the Finger Lakes wine, food and water recreation visitation and Rochester’s traffic swells significantly thanks to tourism. And those people shop. “Reports of the death of malls have been greatly exaggerated,” said Heather Neary, Auntie Anne’s president. With 1200 US locations and 500 international locations, Auntie Anne’s is a successful company. There are over 1200 malls in the lower 48 states, but the company chose to open in only about half. As Neary points out, “We intentionally choose the best — highly visible locations with high traffic.” – Forbes Woman, Feb 21, 2018. Each of the three malls in Rochester have an Auntie Anne’s Soft Pretzel franchise. That...
Online for research, In the mall to purchase

Online for research, In the mall to purchase

This post is mostly anecdotal. But I challenge you to say it’s not true. When my 40-something spouse asks if I would like to take a quick trip to the mall, I invariably shelve my calendar of to-dos for the afternoon. I know my wife and she isn’t one to make up her mind before she enters a store. She loves to browse. She is a retailer’s dream. I also know our 7-year old won’t complain because Auntie Anne’s is our bait to get him to go without a struggle. That said, she is easily a 60/40 split with in-store versus online purchasing. Of those online purchases she usually returns at least half of them. Being that she buys primarily from established brand retailers with mall-based footprints, she will return the items to a brick and mortar location so she can exchange for the correct size or color… and of course spend some more time browsing. This is typical because it tracks close to a 2017 KPMG study of why people shop in stores vs. online. That study revealed 56% of respondents prefer to shop in stores to see and touch the items they purchase first followed by 55% wanting to try the items on. This supports the view that our malls and retail centers are not dying, just evolving. While there are numerous stories of the retail apocalypse and the hollowing out of America’s malls, keep one thing in mind: American consumers log 1.5 billion visits to shopping centers every month, according to the International Council of Shopping Centers in The Wall Street Journal. Developer overbuilding twenty years ago...
Video Content Demand Is On The Rise

Video Content Demand Is On The Rise

The American Marketing Association recently published an article titled 3 Things Marketers Should Know About Visual Content in 2018 (https://lnkd.in/d_YM8gQ) sponsored by Libris and Contently that summarized a study that reviewed the rising demand for video content. In that article they cite some interesting findings. Here is just a sample: • 69% said their need for video has gone up. The primary use cases for visual content today are advertising, social media, website, editorial, and PR. • 81% say video (either custom or live) is the hardest content to create. • 70% of participants who see their need for video increasing, they say custom video drives the most engagement. So while some may find the production and execution of custom video challenging, the return is well worth the investment. Call 585.348.9863 to find out how you can cost effectively gear up your content and advertising opportunities with WalkUp Advertising...