Retail Video And Recency

Back in 1995, noted media consultant Erwin Ephron wrote about recency planning in advertising, a theory that has even more relevance now in the era of in-store video displays.

What is Recency?

Let’s paraphrase a few of Mr. Ephron’s key ideas to explain what recency is.

First, let’s compare recency to old modes of advertising. Way back in the 1970s it was believed that the frequency of advertising was what inspired people to make purchases, even if they didn’t need a particular item.

More recent research into buying habits shows that it is a customer’s need for something makes them buy, not the advertising they see. As examples, Mr. Ephron cites the empty cereal box, the broken dishwasher and the expiring car lease.

If customers have a need, how do they choose which product will best fulfill that need? This is where the theory of recency comes in. If a customer is in the market for an item, it is not repeated viewing of an ad that will affect the purchase decision, but the timing of the ad. In other words, it is not the first exposure to an ad that will lead to a sale, but the most recent in a series of exposures. The recent ad is most effective because it targets the customer when he or she is in the market.

Recency and Retail Video

If we consider that customers who are in the market are most likely to be influenced by advertising, it stands to reason that the advertising must be visible at the point of purchase. Retailers are discovering that when it comes to POP advertising, in-store video is far more effective than traditional static advertising.

The theory of recency is one of the reasons that retail video works so well. Not only is the message delivered at the right time (recency), it is also a highly specific message delivered in a medium that is hard to ignore.

The Effectiveness of Retail Video

Retail video uses the latest computer and broadband technology to allow retailers to customize a message that reaches customers at the time they are most likely to be influenced by it.

Consider the empty cereal box. A customer might have a brand in mind, but is also likely to try something new if she sees the right ad at the point of purchase. And which ad do you think is more likely to get a customer’s attention? A static poster or a multimedia display highlighting a new cereal that is on sale? If you’re not sure, look at these numbers from a 2005 Arbitron study:

• 16% of customers who watch in-store video find it very helpful, while 62% find it somewhat helpful
• 42% of in-store video viewers state that they prefer stores with video displays
• 29% of in-store video watchers bought a product featured in a video, even though they had not planned to

The bottom line for retailers is that the concept of recency and the technology of retail video are a winning combination.

Article Source: http://www.articlegoldmine.com

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