The effects of the economic headwinds on digital out-of-home media, and
why the recession has been good for the digital signage industry.
Strategy Institute's 4th Annual Digital Out-of-Home
Media Investor Conference
The effects of the economic headwinds on digital out-of-home media, and why the recession has been good for the digital signage industry.
Last year’s Digital Signage Investor Conference was notable for the events that preceded the conference. The economic crisis that led to the current recession had just started to unfold. Rumors were everywhere, and a cloud of uncertainty hung over the event.
Fast-forward to today. The effects of the recession on the digital out-of-home industry was the thread among presenters at Strategy Institute’s 4th Annual Digital Signage Investor Conference, a 2-day event held on October 6th to 7th at the Embassy Suites Hotel in lower Manhattan.
The Rules of Engagement Have Changed
“Bad economies make opportunities for seismic changes in consumer behavior,” said Beth Ann Kaminkow, President & COO of TracyLocke, a Dallas-based integrated marketing agency and a keynote speaker for the event.
Consumers are asking deeper questions about their own purchase decisions. Retailers report that shoppers are making fewer impulse buys—a big change for the retail industry compared with only a couple of years ago. Consumers are trading down and their decisions are now driven by price.
“Marketers need to understand that the rules of engagement have changed,” said Ms. Kaminkow. The consumer’s shopping rituals have changed, engagement now happens online and instore. “Marketers need to challenge old assumptions. Young consumer’s perceptions are different, the old methods don’t apply anymore,” said Ms. Kaminkow.
The recession has created a shift in power, destroying billions of dollars in brand equity and consumer loyalty. While some companies have declined, other companies have emerged as winners. Consumers are placing greater value on invention, innovation, authenticity, and integrity.
“This recession has accomplished what marketers spend lifetimes trying to do: disrupt ingrained purchase behaviors and encourage change,”— Kelton Research
A brand’s power to influence consumers through traditional media has become greatly diminished. The retail experience has changed due to the increased influence of the Web. Consumers have gone ROBO (Researching Online, Buying Offline). Advertisers who are looking to connect with consumers need to have a deeper understanding of the journey that shoppers make on their path-to-purchase. Today, more consumers are doing product research outside of the store venue then ever before; however, 50% of all purchase decisions are still made in-store.
Read the Full Story at Digital Signage Universe
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