Advertising screens for the frozen foods department

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Advertising screens for the frozen foods department

The market for Digital Signage doubles each year. High investment costs face scepticism, unrealistic expectations and unexpected technical issues. Korea and Japan are pioneers. In Germany the boom is imminent. In the food trade, the frozen foods department certainly will not lead the way.

While the technology is still new, it attracts the consumer’s attention. Correspondingly, retail often registers sales increases of clearly over ten percent in tests. But where do we go from here? Will consumers get used to this? Will they accept the technology or complain about stimulus satiation? The providers of the technology and its possible contents spread optimism.

Digital Signage is developing into a novel out-of-home-information medium with a range of applications. Radio technology and batteries make the wireless connection to a central server possible. Contents are controlled by means of content management systems and playback lists. The users usually see the public display, the special monitor.

Posters and price tags:

The retail market is already experienced in visual advertisement. For decades, posters and price tags have been well-established information media for the customers. What’s changed is technology. Even posters can today be printed in color at the stores. The design of product photos is also possible. Especially in the food trade with its quickly changing sales offers it is important that prices on the posters and labels on the shelves match the amounts at the cash register. While during the final hour before closing time the produce department reduces its prices to avoid write offs, the frozen foods department enjoys more continuity.

And so an important argument for the introduction of Digital Signage is inapplicable for frozen products, because on screens prices can be changed in the entire market at the push of a button. But another argument also wins over pizza & Co. The monitors can arouse desires in the customer with emotional pictures or action scenes or give an incentive to buy.

In store TV: Edeka Nordbayern launches project

In the food trade, the large-scale breakthrough of Digital Signage has not happened yet. In this country there are several pilot projects and a few pioneers. Viewento is expanding its partnership with Edeka in terms of Digital Signage. In May, Edeka Nordbayern has closed an outline contract with the company of 40 from Hamburg for all independent Edeka merchants, who want to offer their customers in store television. Viewento assumes advisory services, project planning, systems integration, content production as well as operating, supporting and reporting. The Poscomm agency is exclusively responsible for ad-sales and is managed by two former Spar market managers. Already in previous markets, sales increases of 15 percent on average were verified by Nielsen market research.

Source: Samsung/Dr. Oetker, Montage: iXtenso

Digital Signage for frozen food products: Manufacturers and the food trade are still biding their time. This is why this picture is a montage.

It all depends on contents

The entrance into Digital Signage needs to be carefully considered. The technology is expensive and the costs need to pay off some day. Well prepared are those who ask the important questions before the start. Who is the target audience? How do they react to the new technology? Which products are being sold? Can offers be well presented in pictures?

“Content is king“, is the slogan of Digital Signage. Whether it’s large screens above the freezer or small displays at the deli counter – contents for many programming hours are necessary. A database with product pictures, image photos, presentations and videos is also necessary. These can be provided by the product manufacturer, trade associations or image databases. Those who want to show news, weather forecasts, stock exchange prices or sports results need a communication supplier.

Frozen foods manufacturers wait and see

We have asked the producers of frozen foods products about Digital Signage. “POS-TV is a tool with a promising future, which in other industrial sectors and especially in consumer electronics is already very common“, says Martina Sandrock, Managing Director at Iglo Germany. “It still needs to be researched for the frozen food area, how we can simply, quickly and in a consumer-oriented way inform interested shoppers on-site with relevant information about the commodity group and our range of products.“ At Dr.Oetker they also see it in a similar way. At our request Birgit Kopera, Manager of Branding and Product PR explains: “In our current sales approach at the POS, this tool is not used. However, we are not precluding the application of moving pictures at the POS in the future. If more concrete results about the efficiency and effectiveness are available, we will consider this tool more strongly in our strategy.“ The set of opinions is also similar at Frosta, the frozen food manufacturer which five years ago became a pioneer in Internet communication by its introduction of a company blog (www.frostblog.de).
This picture is completed by the Deutsche Tiefkühlinstitut (the German Frozen Food Institute) as an ambassador of the frozen food economy. “It is retail’s turn now. It needs to decide whether it wants the new technology“, believes publicist Carola Herckelrath.

No advertising revenue for now

Manufacturers are not just marking their time in the frozen foods segment. Many hopes for advertising revenue have thus far not come true in retail. Advertising agencies still miss reliable numbers about its scope. More realistic thus far is the approach to cover costs through increased sales. However, an improved image can also be included in the calculation. Yet the start-up investments are very high. If retail asks for it, manufacturers would like to deliver product pictures, some also offer video material, which goes beyond the current television advertising.

René Schellbach, InterCool.de