Customer Experience

OOH ads will fuel 'revenge shopping' this holiday season

After many stores were closed or operating on limited hours last year, many consumers opted to shop online, staying away from crowds as the COVID-19 virus spread through the country. This year, however, with the U.S. emerging from the virus, retail experts believe shoppers will be making up for lost time.

Holiday shoppers are expected to return to stores in full force this season after mostly staying home last year. Provided

November 2, 2021 by Kevin Damask — Editor, Digital Signage Today

Are you ready to do some "revenge shopping" this holiday season?

After many stores were closed or operating on limited hours last year, many consumers opted to shop online, staying away from crowds as the COVID-19 virus spread through the country. This year, however, with the U.S. emerging from the virus, retail experts believe shoppers will be making up for lost time. And stores are ready to roll out major DOOH and OOH campaigns to welcome shoppers back.

Esther Raphael, CMO for Intersection, sees it as a golden opportunity for retailers.

Raphael

"With many parts of the U.S. reopening, tens of millions are expected to make up for lost time by spending money on items and experiences — all in the name of satisfaction," Raphael said in an email interview with Digital Signage Today. "Revenge spending will drive consumer behaviors throughout the rest of the year and maybe long after."

Intersection is an out of media and smart cities technology company. Raphael cited a recent Harris Poll that showed consumers plan to spend the most money on shoes, smartphones, going-out clothes, concert tickets and sporting events. Another study, from McKinsey, revealed shoppers who are fully vaccinated from COVID-19 are more likely to spend more, specifically for fun activities that get them out of the home, including dining out, entertainment and travel.

"There's a theme here," Raphael said. "Consumers are ready to relish in the human experiences they've missed — and look their best while doing so."

Recent supply chain delays, coupled with product shortages, is enticing consumers to get a head-start on holiday shopping. A Jungle Scout survey reported 31% of U.S. shoppers started holiday buying in October or earlier, while 55% expect to begin before Thanksgiving.

"We are also seeing the return of in-person events and the associated spending to host, attend and look your best self," Raphael said. "The apparel and accessories category is trending to grow an estimated 29% year-over-year in 2021.

"This is a recipe for a shopping frenzy and a massive opportunity for brands to capitalize on this unique holiday season."

Mike Tippets, VP of enterprise marketing and organizational development for Hughes Network Systems, said the pandemic had a lasting effect on consumer behavior and expectations. Shoppers are eager for seamless transactions and convenience.

"But at the same time, people have missed the in-store shopping experience and are looking for an engaging, high-touch, personalized experience in store," Tippets said in an email interview with DST. "We're in an interesting time when retailers are trying to address both of those imperatives — and digital signage is a really versatile tool to help do that."

Consumers are looking shopping experiences. OOH promotion — driving product "buzz" and action — provide such an experience, Raphael said. OOH ads can feature live maps to a retail destination or stores can run a countdown clock to promote an upcoming sale.

This holiday season should be the ideal time for retailers to test out new methods.

"Use the popularity of the QR code to create a unique holiday experience with virtual storefronts that offer AR try-ons and shopping, getting product into carts," Raphael said. "Or tap into the editorial voice to natively integrate your brand with thoughtful and highly-curated editorial like sponsoring must-see holiday attractions, for locals and tourists."

OOH has the advantage of grabbing consumers' attention as their walking from different stores in a "non-invasive, hyper-relevant way," according to Raphael. OOH ads usually drive shoppers to take action, whether visiting a retailer's website to search for an item or walking into a store to purchase a product before it flies off the shelves.

"We have seen very successful ROI for campaigns; one retailer saw a 16% lift in brick-and-mortar store visits and another saw a 21% lift in organic search traffic in New York City," Raphael said. "So yes, it pays to invest in OOH and brands will see a big return when they do."

On the digital side, Tippets said retailers can improve their connection to shoppers by offering more of what they're already comfortable with. Digital-savvy consumers already know how to navigate through screens to find product information, prices, discounts and product availability. Tippets noticed that stores are utilizing digital signage to deliver similar content and functionality.

"Digital signage for way-finding in-store (leading customers straight to their desired product) or for entertainment while waiting in line, help ease some of the potential inconveniences of in-store shopping versus online," Tippets said. "Digital signage also can help users comparison shop on-site or see how a product might look in different colors."

Tippets

To prepare for the holiday season, grocery stores are deploying both static and interactive digital touchscreen displays to promote "everything from in-store sale announcements to seasonal recipes," Tippets said.

Speaking of digital technologies, retailers are also feeling more comfortable using AI to gauge consumer behavior and patterns. Tippets believes the ability to measure engagement is at an all-time high.

"From analyzing customer behavior through in-store wi-fi analytics, to leveraging customer data from apps and online to the in-store experience or applying AI to predict shopper desires — today's technology provides an unprecedented understanding of individual shoppers' behaviors," Tippets said.

However, consumers are becoming more aware, and leery, of invasive techniques to gain information. Tippets said companies have a responsibility to communicate truthfully with shoppers about data. They're working to improve consumer-friendly data privacy policies by informing customers of terms and conditions when they opt into a service.

Through Hughes, a managed services provider, clients can store their information on optimized networks, protecting sensitive customer data.

"It's essential businesses have a robust cybersecurity infrastructure that protects consumer data, within an organization or in the cloud," Tippets said.

About Kevin Damask

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