Bill Ketcham, executive vice president and chief marketing officer, Adspace Networks tells us that “People are still going to malls, even though specific retailer traffic may be down. Shoppers are looking for value, and smart retailers that put compelling items on sale and communicate that to mall shoppers near the point of purchase, will fare best in this value-oriented environment.”
A recent test in 12 shopping centers with the Adspace Digital Mall Network showed that when a major anchor department store discounted USD 145 Cole Haan men’s loafers to USD 99, Adspace increased promotional lift by 38% !!!
Adspace Networks is now confident enough to say that advertising on its network of Smart Screens is “proven to move merchandise”
In stores that did not promote the sale on the Smart Screens, the Cole Haan men’s loafers sale trended 15.1 percent above average. In stores where the sale was advertised on the Smart Screens, sales jumped to 20.8 percent above average.
Adspace also released research on work done with Build-A-Bear Workshop in June this year.
Teresa Kroll, chief marketing officer, Build-A-Bear said “Over the summer Build-A-Bear Workshop successfully tested an in mall program with Adspace that engaged guests with exclusive offers and drove incremental traffic to our stores. In an effort to build on that success Build-A-Bear Workshop is implementing a holiday program with Adspace in over 35 malls nationwide.”
Dominick Porco, Adspace chairman and CEO who we interviewed in our CEO Spotlight back in September makes mention that “Our mall-based clients that have used price-point promotions on our Smart Screens have seen immediate sales lift”
Of course one of the biggest issues facing potential mall advertisers is the perception that mall traffic has fallen dramatically in the face of higher oil prices and the reeling economy, however in the US according to Shoppertrak’s Mall National Retail Traffic Index (NRTI) measure, enclosed mall common area traffic was essentially flat for the first half of 2008 versus 2007, declining a modest 0.5 percent.
In July, with the price of oil accelerating to an all-time high, enclosed mall traffic declined 3.4 percent versus the prior year period whereas in August, as the price of oil started to decline, mall traffic’s negative trend moderated. This trend continued into September as the price of oil continued to fall.
During the month of October, shopper traffic in the common areas of enclosed malls has actually increased versus October 2007, contrary to common perception.
It’s great to see Adspace releasing so much market research material. It’s all good for the industry.