No matter how great your product is, it’s not going to serve anyone if they don’t know about it. You know that advertising is important, but also expensive with a high risk of wasted spend. What you might not realize is that running ads at the point of purchase (POP) is the winning strategy and that you don’t need to be an advertising expert to drive sales with it.
The need for advertising
A solid advertising strategy will help you build your brand, gain market share, and increase distribution.
Build your brand
Building your brand will ensure that people learn about your products, their features and benefits plus your unique selling proposition (USP). This will get people talking about you and lead to increased sales.
Gain market share
In many industries, total or primary demand doesn’t grow anymore. This means that gaining market share is your only way to increase sales. This requires differentiating yourself from your competitors to steal their customers. A higher market share brings higher sales and further advantages, like better prices from suppliers, lower production costs and better trading terms. Each of these will improve your profit.
Distributing your product starts with getting listed in retail stores. Competition for shelf space is fierce since each retailer can only list so many brands. Many retailers demand high advertising spend from brands. This is intended to increase consumer pull and how quickly products turn over. Once listed, you need to sell through if you want to keep your distribution agreements.
The challenges of advertising
The fact that advertising is difficult, expensive and delivers an uncertain return, causes many companies to dedicate insufficient funds to it.
Advertising is difficult and expensive
Creating ads is both an art and a science, requiring special skills often beyond those of an entrepreneur. Going to an agency is an option but one that comes with a heavy price tag, even before your ad has run. Media costs vary widely but are never cheap. A recent Forbes post estimates US digital ad spends will be about $107.3 billion in 2018, a number up 18.7% from 2017.
Up to half of your spend could be wasted
Broad ads, like those running on tv and radio, reach a wide demographic. The problem is that a lot of that audience won’t be your target customer. They might not be in your target age group, gender or salary range. They might not have any need or desire for your product. Worse yet, they might have forgotten about your offering when they get around to shopping. All that means you’re spending money to show your ad in front of people sure not to buy what you offer. Forbes called ad waste “the silent killer of corporate profits.” Don’t let it crush your bottom line.
On-location advertising to the rescue
Point-of-purchase (POP) advertising happens on-location, whether it’s brick and mortar or online, directly at the place where purchases are made. This ensures your message gets to your target customer when they’re in the frame of mind and the place to buy. POP advertising affects consumer buying choices as they’re in the process of shopping, so even premeditated plans can be bent to your will. Studies have shown that POP advertising not only influences what shoppers buy but can also increase the amount they buy.
Online POP advertising happens on web stores and is an opportunity you don’t want to miss out on. Shoppers increasingly buy online, giving you another place where you can sway them. Effective online POP marketing strategies are banner ads and sponsored search results. Banner ads help you build brand recognition and showcase your products. Sponsored search results drive your products to the top of search rankings.
Studies have found that dynamic ads can boost sales by 49%, while static ads only boost sales by 15%. Your time and money are better invested in digital ads. The best dynamic ad is video, which informs and entertains. Studies show that we’re driven by visual information because 90% of information transmitted to the brain is visual. People are hard-wired to watch video — don’t you want to leverage the power of that?
What you should expect from your POP advertising provider
The best providers will be receptive to how you want to advertise, offering choices that suit any product or business. Here are a few benefits that you need to look out for.
Ease of use
A POP advertising provider will usually have a dashboard where you upload your ads, design your campaigns then detail your programming location and run times. The more control you have over these tasks, the better for you. It’s also important that the user interface is friendly. Easy analytics and reporting are important for you to track the success of your ads, in real time.
Respect for your budget
Advertisers use different models to price advertising. Results-based pricing is best for online POP advertising because it means you don’t pay unless someone clicks on your product or takes the action you requested. Seek providers who allow you to decide when to stop or start a campaign at any moment, with no obligations.
Creation support and quality
You don’t need to be an advertising specialist since the best POP advertising providers will support you in finding professionals to create videos. High-quality advertising videos reign today and yours can’t afford to be any less.
The need for advertising has never been greater, even though its cost and complexities have grown. Point of purchase advertising is a solution since it reaches target customers while they’re shopping. Look out for providers who can help you with ad creation. Let POP make your sales pop!