How digital marketing boosts retail sales

Published on: 2015-02-05

BizCommunity is carrying this article from South Africa:

Speaking at the recent Marketing-at-Retail Workshop in Johannesburg, One Digital Media CEO Mike Bosman illustrated why digital media at retail is becoming a force to be reckoned with in South Africa's retail marketing arena. According to independent research conducted recently on 22 brands, brands stand out 33% more when the particular brand advertises on screen.

The research also shows that awareness of the screen by the shopper appears to convert into a 29.6% increase in sales made.

Over 5000 screens

In the past year, One Digital Media has driven the roll-out of a first-of-its-kind digital network - with over 5000 screens installed in hundreds of supermarkets, shebeens, liquor stores and other outlets country-wide, and the system is working with 98% compliance.

Many of the installations have been in Spar stores and are able to run up to 45 screens and 45 channels per store - and the impact of the content that's been broadcast is reported to be a considerable 9.6% average increase in sales for the brands that advertised using the digital media infrastructure, content development and delivery mechanisms that One Digital Media has pioneered.

Our take:

With all of the activity happening in developed markets like the US and Europe, and the massive growth in BRIC nations -- particularly Russia and China -- it's easy to overlook secondary markets, even when they're growing at an even faster rate. That's what often happens to South Africa, which is easily the strongest and largest economy in the entire African continent, has a developed economy, a strong retail/shopper culture, and has heartily embraced in-store digital signage as a way to reach shoppers.

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