A Good Sign

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A Good Sign

WASHINGTON -- In-store advertising in convenience stores boosts sales from five to 13 percent, according to new data released by Point-Of-Purchase Advertising International (POPAI) at the annual trade show of the National Association of Convenience Stores (NACS) show in Orlando, Fla. POPAI is the international trade association for the in-store advertising industry.

In-store advertising consists of displays, signage and other media that communicate a brand's availability and key attributes to consumers at retail, the point at which 70 percent of all brand purchase decisions are made, the group said.

Information concerning proof of placement of in-store ads was impressive, demonstrating that 45 percent of all audited brands were supported by in-store advertising. This compared favorably with a 27 percent figure -- derived from the study's previous phase conducted in supermarkets -- for in-store advertising of audited products on supermarket product displays.
Even more impressive was the information about the power of various kinds of in-store advertising to generate robust sales increases; for example, the use of:
* Advertising signage increased sales by 13 percent
* Advertising base wrap increased sales by 6 percent
* Advertising through a pump-topper increased sales by 5 percent

In the same way, various messaging strategies drove sales increases, including:
* Mention of 'savings' or 'cents off' generated a lift of 36 percent.
* Inclusion of a product photo generated a 13 percent sales increase.
* Mention of price generated an 8 percent increase.

The study's convenience store phase is one component of POPAI's "Measured Medium" study, a multi-year research initiative aiming to transform in-store advertising into a measured ad medium, on par with print and broadcast. The study is determining credible levels of in-store advertising's proof of placement, cost effectiveness and sales effectiveness.

"These data simply reconfirm the fact that in-store advertising boosts sales, especially for retailers that work pro-actively with brand marketers to strategize for maximum consumer impact," said Dick Blatt, POPAI's president and CEO.

Audits of more than 50 brands were performed in a nationwide sample of 120 convenience stores, in 10 markets, by a unit of Nielsen Market Research. The study is being conducted in conjunction with the National Association of Convenience Stores (NACS) and participating retailers include 7-Eleven Inc., ChevronTexaco Corp., Nice 'N Easy Grocery Shoppes Inc., Sheetz Inc. and Shell Oil Co.

Products being audited include: alcoholic beverages, bottled juice, bottled water, carbonated soft drinks, isotonic/energy drinks, gum/mints, health and beauty care, and salty snacks. Sponsors are: Adams/Pfizer, Anheuser-Busch, Dr Pepper/7-Up, Frito-Lay, Pepsi and Quaker.