Issue Fall 2008

Arbitron’s Report on Retail Video Displays

The Arbitron Retail Media Study -- Volume II: Consumer Interest and Acceptance of Video Displays in Retail Environments examines consumer attitudes toward video displays in retail stores.

New forms of broadcast media have emerged over the past decade. One of the most exciting innovations has arrived in the form of retail-based video programming. Video screens are popping up in places such as supermarkets, department stores and larger retailers. The video content is designed to inform and entertain shoppers, as well as to promote merchandise.

Retail video harnesses the power of regency media planning. It is the idea that advertising media "sell" those consumers who are ready to buy the product. It is as if there is a window of opportunity preceding each purchase where the consumer is most susceptible to a brand message. Advertising's job is to influence the purchase; media's job is to put that message in that window. Retail video takes the proven impact of broadcast-style ads and places it directly at the point of purchase.

The goal of The Arbitron Retail Media Study -- Volume II: Consumer Interest and Acceptance of Video Displays in Retail Environments is to explore consumer attitudes toward in-store video and gauge its potential as a national broadcast advertising vehicle.

SIGNIFICANT HIGHLIGHTS:

One-third of Americans have watched in-store video. Thirty-three percent of consumers recall seeing video screens in a store -- not counting sets for sales in the television department.

This relatively low overall "viewership" rate still is based at least in part on penetration levels of in-store video networks. Based on the specific retail chains they shop, it still is conceivable for many U.S. residents to not be exposed to in-store video programming.

One in 33 shoppers makes a habit out of watching retail video. Three percent of shoppers overall (and 10% of those who have seen video screens) say they either always or frequently stop to watch. Another 11% sometimes stop to view video screens they pass in a store.

Most video programming viewed featured products sold in the store. Eighty-one percent of shoppers who have seen retail video say the programming focused on merchandise available in the store. Almost half (47%) recall learning about specials or sales from the video displays.

Over half of retail video viewers think more stores should install displays. Fifty-two percent of the consumers who have watched in-store video feel that more stores should run video programming.

More than three-fourths of retail video viewers find the screens helpful. Sixteen percent of the consumers who have seen video in a store feel the displays that feature product or sale information are very helpful, and 62% find them somewhat helpful.

Close to 30% of retail video viewers have made an unplanned purchase. Roughly 10% of all shoppers (and 29% of shoppers who have viewed retail video) say they bought a product they were not planning to buy after seeing it featured on the video display.

Forty-two percent of retail video viewers (15% of all shoppers) say they would choose to shop in a store with video screens over a store without them.

Consumers are most interested in video that focuses on store sales, product information and special events. Eighty-one percent of all consumers, regardless of whether or not they already have experienced in-store video, are most interested in seeing video programming about the store they are in, including sales and specials (81%), product information (72%) and special events (68%).

COMMENTS & RECOMMENDATIONS

1. Shoppers are extremely receptive to retail video. Consumers like in-store video displays and want to see more of them. This benevolent attitude toward the medium can reflect well on participating advertisers.
2. Retail video stems the tide of commercial avoidance. New technologies are giving consumers unprecedented control over programming and accompanying commercials. Retail video delivers a broadcast-style message that cannot be circumvented.
3. Retail video reaches consumers when they are ready to buy. The concept of recency media planning, popularized by noted media researcher Erwin Ephron, states: "advertising media "sell" those consumers who ready to buy the product. It is as if there is a window of opportunity for the ad messages preceding each purchase. Advertising's job is to influence the purchase; media's job is to put that message in that window. As Americans spend more time with nontraditional media, it becomes important to utilize media that can put the advertising messages in the window of opportunity preceding each purchase."