Half of brands plan to reduce their point-of-sale spend over the next year in a “perfect storm” of limited opportunities and scepticism, research from Shoppercentric has found.
Difficulties persuading retailers to adopt branded PoS material motivated the drop in spend among 55% of the respondents, made up of 88 food and drink brand owners and design agencies.
And a third cited lack of proven return on investment as a reason in the survey, conducted in partnership with the Institute of Promotional Marketing in May.
Shoppercentric managing director Danielle Pinnington said the fall in spend was also “an expected reaction” to the backlash against multibuys and promotions at the retailers. She pointed out that 55% of respondents primarily used PoS marketing to highlight promotions, and a move towards everyday low pricing would “surely restrict this particular use”. Sainsbury’s is currently in the process of removing all multibuy deals from its stores by August.
Pinnington said PoS advertising would need to adapt to the new environment. Shelves would not be “as cluttered” and brands would come up with “more thoughtful and considered” ways of marketing, she forecast.
“The campaigns must be transparent - no exceptions, catches or strings attached and be focused and relevant to the shoppers,” she stressed. “The tone is also critical as it shows that you know your audience and their needs.”
The survey revealed 61% of respondents felt interactive displays were the most impactful form of new technology. Pinnington agreed the technology could “offer a solution for brands and for retailers” but warned it would have to “fit with how shoppers work”. “I think it needs to be in channels where you’re willing to spend the time researching the products,” she said.
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