Research

A Seismic Market Shift – The New Media Triad

The traditional media triad of TV, Radio and Print is rapidly being eclipsed by a new emerging Triad as we transition into a mobile digital world.  The new media Triad of Internet, Mobile, and Digital Out-of-Home Signage is on the ascendancy while the traditional triad is in decline.

Market Size

Frost and Sullivan (a Research and Consulting Firm) forecasts that the size of the North American Digital Signage Advertising Markets comprising advertising revenues from digital signage networks to reach $3.7 Billion in 2011 with a compounded annual growth rate of 67.12%

In-Store Networks Need New Media Tactics 

An in-store network reaches consumers who:

Can’t turn it off, change the channel, or fast forward are already primed to buy — giving advertisers the opportunity to deliver brand messages just in time for the consumer to make a decision. But it’s not television — shoppers aren’t going to wait around for a 30-second spot.

Making the most of the medium will mean rethinking:

Ad content. Ordinary TV ads are about branding that catches the eye of uninterested consumers. This is the wrong approach for in-store TV, where ad relevance ought to be higher. Ads will need to get both longer and shorter, depending on their location in the store. Ten second spots work in high-traffic areas where shoppers’ attention is limited. But for areas where shoppers linger — the deli counter, dressing rooms, or checkout — advertisers should deliver in-depth messages like product demonstrations.

Alternative Out-of-Home Advertising is forecast to experience the largest growth in spending versus all other Out-of-Home sectors.  Alternative Out-of-Home Media includes spending on digital billboards, out-of-home television networks and place-based media.  This growth represents a shift away from traditional ad-based media spending.  This shift is a result of audience fragmentation, the technological threats of TiVO, and the questionable returns on investment in traditional media.  Decreasing installations costs, advancement in digital technology and distribution, as well as precise audience rating systems are driving this shift in advertising spending. 

In-store television networks can reach consumers who are otherwise opting out, fast forwarding, and just plain tuning out traditional advertising.  Retailers, manufacturers, and media companies benefit by reaching consumers at the “Point-of-Purchase” when they are naturally receptive to selling messages and make 74% of buying decisions.  To take advantage of in-store TV’s reach, targeting, and effectiveness, both advertisers and retailers need a creative approach focused far more on selling than traditional television.