Be Better – Consumers Are Over ItJune 22, 2022 / News & Events
We live in a world where we’re constantly bombarded by messaging. It’s on our televisions. Digital billboards light up our roads. Even gas pumps play video ads. In fact, some experts estimate the average person encounters anywhere between 6,000 and 10,000 ads every single day.
Yet there are times — and environments — where ads really do deliver messages we hear or see and process. Take, for example, the grocery store. And let’s face it. We’re far more likely to pay attention to an ad we hear while we’re perusing the aisles.
Considering the frustration many of us continue to experience with out-of-stocks, price increases, and down-counts, maybe grocery shopping isn’t as enjoyable as it’s been. Stores understand our frustration. But they’ve got a good tool to help alleviate it: Audio Out of Home (AOOH).
You might be wondering how AOOH connects to out-of-stocks. It’s really not a stretch! The supply chain includes a myriad of variables. Supply chain issues, labor shortages and fuel increases all play a part in the challenges we’ve seen since early 2020.
Consumers want to interact with advertisements for products they can actually purchase instantaneously and avoid the frustration of supply-chain issues leading to out-of-stocks. Grocery stores leveraging retail media networks — particularly with programmatic in-store offerings like audio — become listening halls used to reinforce a retail media campaign’s messaging. Here’s why:
- We’re seeing a trade down. Premium brands are losing the shopper to cheaper brands. Even loyal consumers looking to save money on grocery trips are opting for less expensive value brands.
- We’re seeing erosion in retailer loyalty. If the shelves of your favorite retailer are continually bare and many items on your list are consistently out of stock, you’ll go elsewhere. All the hard work the retailer has put into retaining you as a loyal shopper is at risk.
So Now What?
EMarketer said 2022 is “The year of retail media networks.” US spending has grown another $10B to over $41B and represents 17.2% of total US digital ad spending. It’s proof positive that retail media has a solid place in the current economic climate.
Paired with the inflation we’re experiencing — and not just in grocery — we’re seeing a significant shift in shopper behavior and expectations, and predict this shift will translate into a demand for stronger brand awareness and retailer accountability.
How does AOOH fit in? It enables brands and retailers with products in stock to capitalize on letting in-store shoppers know what’s in stock — and on special. It’s a great way to cultivate future loyal customers and reinforce positive relationships with current brand-lovers. These in-store marketing and retail media tactics like AOOH tells shoppers what you’re doing well.
We know that over 70% of consumers prefer in-store, brick-and-mortar shopping. We also know over 50% of grocery shoppers are inclined to make impulse buys. Activating audio advertising with Vibenomics is a great way to encourage and influence purchases — including those made impulsively. It’s a simple and effective layer to any brand or product awareness effort and messages multiple shoppers in the environment where they can access and purchase your items.
The Time For Change Is Now
We’ve certainly seen supply chain ebbs and flows before. Brands, suppliers and manufacturers focus on its many nuances:
- The cost of raw materials at each stage, including the finished packaging.
- The costs of ingredient costs to produce each item.
- Labor, fuel and distribution channel efficiencies.
It all matters, and believe me, manufacturers of items on our lists are keenly aware of shifts in these areas. We know inflation impacts shoppers and that repeated disappointment about out-of-stock items may drive shoppers to a different store. It only underscores your need to work more diligently with your brands and suppliers to create non-negotiable key items you’ll always have in stock.
Have backup suppliers ready just in case your go-to suppliers can’t deliver. Create bundle offers at a deal price, buying deep from your suppliers and passing the savings to shoppers purchasing a complete bundle.
Finally, don’t neglect your retail media. Don’t make the mistake of relying solely on printed store flyers, ecommerce, mobile or onsite/offsite approaches. In-store audio elevates marketing campaigns by providing another strategy for stores to:
- Advertise deals.
- Influence customers.
- Share brand messages.
And don’t discount the equally important value: creating a pleasant atmosphere that enhances shopping experiences and transforms occasional customers into repeat, loyal customers. It’s time for brands and retailers to be better. Engage Vibenomics today to look at how to effectively message shoppers at point of sale.