Question

Topic: Other

Pricing In Store Media

Posted by riley.smith on 5/13/2012 at 2:27 AM ET 250 Points
I an wondering how I should price the in store media solutions my company is considering launching (including cart advertising, floor decals and shelf fins in grocery stores) They will be in smaller format grocery stores with lower traffic levels than normal. Does anyone have a ballpark figure or ideas on how I should look at pricing the media solutions?
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  • Posted by Jay Hamilton-Roth on 5/13/2012 at 9:21 AM Accepted
    Price is what people are willing to pay. How much are they paying for similar services in your area? If the ads will be in lower traffic levels, this must also be accounted for in your pricing as well. To get the network started, offer free ads for local non-profits and/or deeper discounts for new clients.
  • Posted by Peter (henna gaijin) on 5/14/2012 at 2:02 PM Accepted
    Just to be clear - the advertiser whose message is on the ad should be paying for this. The store likely will want to be paid for the privilege of you using their space to advertise. They could be paid in cash, or it could be paid through providing some benefit to them (like free grocery carts).

    I did a blog post on pricing ads in a new magazine that might be worth reading - https://expandabroad.blogspot.com/. Different media, but parts still hold true.
  • Posted on 5/14/2012 at 2:59 PM Accepted
    Peter understands this well. Your advertisers will probably expect to pay about the same amount per viewing as they pay now. Since these are smaller stores with lower traffic counts, the absolute dollars will be less than for larger stores.
  • Posted by riley.smith on 5/14/2012 at 3:14 PM Author
    I don't think Phil Grosolia understands the question, either that or he has no marketing experiance at all.

    Why would retailers pay for this service? I have no idea? Use some common sense.

    Retailers GET PAID for allowing the ads to be in their stores by my company, I charge the advertisers (Just like Red Plum, News America Marketing and Torchmedia via Woolworths and Hypermedia via Countdown)

    You would have to be a novice to think I meant retailers would pay suppliers...


    Peter, thanks for the link to your article.
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