With supermarkets rolling out advertising screens in their stores as part of a push into retail media, new research has found that 17% of under-45-year-olds have been persuaded to spend more than they originally planned due to digital displays.
The survey, commissioned by Saturn Visual Solutions and carried out by OnePoll, asked 2,000 UK-based adults how they felt about modern stores that have interactive displays and screens showing product information and videos.
Nearly a quarter of 18 to 24-year-olds (24%) admitted that they’d been persuaded to spend more than they’d originally planned to whilst in a store with digital displays. The figure went down to 19% cent with 25 to 34-year-olds, and 15% for 35 to 44-year-olds. The number dropped sharply to just 7% for the respondents over 45.
Men were more likely to find digital signage in shops persuasive, with 17% admitting to splashing out as a result of seeing it, whereas just 9% of female respondents said the same.
Saturn CEO, Chris Welsh, said: “We’re not surprised by the finding that people are more likely to splurge in a store with digital displays. It shows that the environment customers are shopping in and the information they are provided with can really influence how they feel about a product.”
A quarter of all respondents (25%) felt that the displays in modern stores made it easier to find out about new products. Nearly as many (22%) said that shopping in modern stores with digital displays was more fun and felt more luxurious (22%).
Almost a fifth (19%) said they thought stores with digital displays tended to feel like nicer places to shop. This figure went up to 26% for male respondents.
Welsh added: “Our research shows that a good portion of the younger generation think digital displays enhance their in-store shopping experience. For too long retailers have treated digital displays like an ’optional extra’. Hopefully, this research illustrates the impact that displays can have on shoppers’ experiences and their perceptions of brands. It also clearly indicates a positive influence on the bottom line, for retailers.
“It’s unlikely that this preference for a more modern, interactive store is going to change with the next generation. Retailers need to start upping their game and delivering an in-store experience that focuses more on the here and now, rather than what used to work in the past.”
Earlier this year, Tesco revealed that it would have around 6,000 digital advertising screens operating across the Tesco store estate by the end of this year as it looks to generate extra revenue from its retail media activities.
NAM Implications:
- Well, it’s modern, innit?
- Seriously 24% of 18 to 24-year-olds is serious, but possibly still below expectations of retail media…
- …and more concerning how this conversion rate falls off with older segments of the population.
- i.e. key for retail media stakeholders to manage expectations…
- …and clearly define target groups.
