Table of Contents
Scott Fiaschetti
There was a time when likely the only electronic or digital display of any kind that could be found in a pharmacy or drug store was the sign indicating the name of the business above the entrance. Today, things are very different. As the ubiquity of digital signs has continued to grow, drug store chains and individual pharmacies are beginning to integrate in-store networks to enhance the shopping experience and drive incremental revenue from brands that have come to experience firsthand the potential of digital signs to increase sales.
That said, place-based out-of-home (OOH) media is still widely underused within retail pharmacies. For those still on the sidelines or unsure of the benefits, an in-store OOH strategy can boost traffic and sales, and enable a more delightful shopping experience in the following ways:
- Engage shoppers and influence purchasing decisions at critical moments — In-store digital signs allow retail pharmacy owners to engage with consumers while they are shopping and at the crucial point where purchasing decisions are being made. Digital point-of-purchase displays can be used to promote specific products, announce short-term deals and specials, and capture the shopper’s attention with any message as they enter the store and work their way through the different sections. Retailers can use interactive digital screens to connect with mobile devices, share digital coupons, and even enroll shoppers in loyalty programs. Finally, store owners can monetize in-store screens by offering brands the opportunity to stand out among the competition with premium placement across their inventory, ensuring their ad is seen at the right place and right time within the store.
- Attract and strengthen relationships with brand advertisers — Brand advertisers seeking to target retail pharmacy consumers can benefit and see greater results when they access and leverage an in-store digital network. Data has shown that brands that advertise in stores via a retail media network can experience a 5% increase in sales. By leveraging dynamic content capabilities, advertisers can display contextually relevant ads that can be instantly changed and aligned with any number of real-time changing variables like time of day or weather conditions. Ads can be displayed in the section of the store that makes the most sense based on the product being marketed — e.g. ice cream ads in the freezer section. For retail pharmacy owners, a robust in-store OOH media network can ultimately strengthen relationships with advertisers and ensure that brands see and know their stores as a place where their advertising investments will reap returns.
- Drive attention and spontaneous foot traffic — Not only are digital screens incredibly valuable for engaging and interacting with consumers inside the store, but they also have a critical role to play in driving traffic through the front doors, especially for retailers located in crowded cities or malls where there is a high volume of pedestrian traffic. Data from the OAAA (Out of Home Advertising Association of America) found that over two-thirds of shoppers notice OOH ads as they are en route to retailers. When these ads are placed on exterior-facing windows or even outside the physical footprint of the store, retailers can display brand ads, promotions, or any kind of useful and informative information that can potentially grab the attention of a passerby and entice them to enter the store. Given that the average consumer spends up to $450 a month and $5,400 a year on spontaneous impulse purchases, digital signs can be a great tool for intercepting consumers that weren’t necessarily intending on visiting the store.
- Vibrant, content-rich networks now available to all — For smaller community drug stores and independently owned pharmacies, deploying a network of digital screens may seem like a daunting exercise and an overwhelming expense. This is not the case. In-store networks are no longer solely the domain of the larger, chain stores. A crop of emerging retail media specialists today offer access to turnkey digital signage systems where even the installation of the screens themselves is a cost absorbed by the provider. Once connected to the network and the vendor’s digital media platform, store owners can display their own customized content to engage consumers and generate revenue from advertising at the same time. Content can be automated and changed across all screens with regularity. The heavy lifting of installing, activating and managing the network is completely removed while the store owner benefits from having a refreshing, eye-catching digital presence.
- Enhance the experience by empowering shoppers — Across nearly all retail sectors, stores are staffing fewer employees. In some cases, they are unable to attract and hire the help they need. In others, it’s about cutting costs. Whether it is providing basic information, confirming the price of an item, displaying wait times for filling a prescription or seeing an in-pharmacy medical professional, digital signs can be deployed to empower consumers to self-serve and acquire the information they need. As a result, wait times for help from staff are ultimately reduced, misunderstandings or miscommunications are virtually eliminated, and any potential shopper frustration is alleviated.
- Update and modernize your look — Finally, digital signage networks enable pharmacies to upgrade the look and feel of their respective establishments and appeal to consumers seeking a premium physical shopping experience. A recent study found that 84% of shoppers preferred to visit stores with an engaging atmosphere and technological amenities. A digital signage network can quickly enhance the aesthetics of any retail pharmacy and work wonders in helping store owners modernize their physical locations.
With the pandemic firmly in the rearview mirror, shoppers are back at physical stores in a big way. By reaching customers at the most important part of the customer journey, OOH presents a valuable opportunity for pharmacies to maintain and build their customer base, deliver greater results for advertiser partners, and maximize sales in a fiercely competitive retail environment.
Scott Fiaschetti is executive vice president of marketing and learning at Geopath.
