Fresh POP-ed
It might not sound like good news, but the fact that spending on point-of-purchase advertising remained flat in 2002 at $15.5 billion really is good news.
“In this economy, that’s not a negative,” says Pam Church, executive VP of Frankel & Co., Chicago. “We were caught between the recession and the (threat of) war. Business stalled.”
And even though spending was flat, the importance of P-O-P as a marketing tool grew as manufacturers championed its ability to support and extend the brand, says Dick Blatt, president of Point of Purchase Advertising International, the Washington, D.C.-based trade association.
Meanwhile, cross channeling at the retail level has grabbed hold for some major retailers and the smaller guys are on the run to catch up. “The trend is a blurring of lines,” Blatt says. “Wal-Mart is now one of the largest supermarket chains,” as well as a national discount retailer offering a wide variety of general merchandise.
And retailers are increasingly demanding that account-specific displays be tailored to meet their needs as well as the manufacturers’. Retailers became even stricter last year (and they were already strict) about the amount of signage they’ll carry and banning certain types of displays. They want the displays to fit nicely with their store’s atmosphere and to match the décor and other restrictions making it all the more challenging to get P-O-Ps in place.
“So, what you do get up has to work even harder,” Church says.
On one front, the industry responded to the challenge by drawing more attention to its brands in creative at P-O-P.
“Instead of just one-offs, point-of-sale now is also about the brand being a motivation for a sale,” Church adds. “There’s more integration of brands and promotions, plus working the promotion at national and local levels.”
Taking another tack, some whittled down the number of elements produced, throwing their weight behind a single unit with bigger impact.
And the messages became more targeted as merchandisers focused on a particular group at an outlet. “At grocery stores, they want moms,” Church says. “At drug stores, women. Even at McDonald’s, instead of one-size-fits all messages, they tailor messages (at point-of-purchase) for each group,” she adds.
Compliance is another challenge (that may be putting it lightly) with local stores reluctant to use their space and staff to put up a supplier’s display. “There’s no question compliance is down,” says John Rand, senior analyst and grocery team leader at Management Ventures Inc., Boston.
“It’s still a huge issue,” adds POPAI’s Blatt. “It remains the traditional challenge between the corporate office and store people in the field.”
Digital P-O-Ps popped up with more frequency as prices for the technology dropped.
Interactive displays are more popular and more advanced in their ability to entertain and communicate with consumers, says JeanMarie Sullivan, managing editor of POP Times, Skokie, Ill.
This year, hopes are high, but expectations are low. PROMO estimates growth of 2 percent for spending on P-O-P ads for 2003.
The direction those percentage points head depends on what happens in the Middle East and with the economy.
“Let’s face it: the economy has to go up sooner or later,” Sullivan says.
POP DISPLAYS SNAPSHOT
total spent in 2002: $15.5 billion
Spending remained flat with 2001
Displays tailored to meet retailers specs
Interactive displays gain in popularity
