The Future of Grocery and Convenience Stores: How Screens are Changing Traditional Advertising

Digital adverting is a well-known method for increasing sales since 36% of grocery shoppers say they are more likely to purchase something if they notice an ad while shopping. Digital advertising is a cutting-edge field that is constantly evolving. Digital advertising can boost brand recognition, sales, and reputation. Retailers that invest in digital advertising can benefit from increased brand awareness, higher revenue, and a more favorable image. Because new technologies are constantly emerging, digital advertising is a dynamic field. To maintain their benefits, retailers must invest in digital advertising. HapPhi has created a platform for venue screen-based digital advertising for grocery and convenience stores.

Written by
June 15, 2022

The grocery and convenience store industry is projected to exceed $1 trillion in sales by 2021. In fact, the combined market share of these two subsectors is expected to grow from $521 billion in 2018 to $681 billion by 2023. In response to shifting consumer trends, digital innovation, and new competitors, many traditional grocers are expanding their offerings of convenient products and services. In addition to expanding e-commerce initiatives and delivery services, one way this is being done is through digital advertising screens installed in stores. From interactive billboards that offer coupons or let customers order pizza directly from the display, to screens that stream videos about the latest seasonal ingredients or encourage shoppers to try new products — companies are capitalizing on cutting-edge technology to promote their brands and drive sales.

What is changing in grocery and convenience stores?

We’re already seeing significant shifts in the way grocery and convenience stores operate: - The lines between different retail channels are blurring. Once distinct storefronts, e-commerce and brick-and-mortar operations are increasingly interlinked. - Digital innovation is influencing all aspects of retail operations. From ordering groceries online, to scanning items and paying with digital wallets at self-checkout counters, to more interactive in-store experiences, shoppers are interacting with technology in new, creative ways. - New competitors are helping to change the industry. Amazon’s acquisition of Whole Foods and other digital-first grocers, like Instacart and DoorDash, are shaking up the traditional food retail space. - Consumers’ expectations are also evolving. At the same time that shoppers are spending more time online, they are also seeking more personalized experiences in-store. They want technology that simplifies their lives, and that applies to all aspects of their daily routines.

How screens are used to advertise directly to shoppers

One important difference between grocery stores today and 20 years ago is the addition of digital signage. Grocery stores use this technology to share messages about new products, upcoming sales and promotions, and other details that could be helpful to customers. Digital signage also allows grocers to advertise to shoppers directly, introducing new brands or promoting new products. While there are no exact statistics on the adoption rate of digital signage in grocery stores, companies like Brandmovers, Screenrait and Brightside have reported significant growth in their businesses. Brightside, for example, has expanded from serving a handful of markets in 2016 to operating in more than 2,000 grocery stores across the U.S.

Which grocer will benefit most from digital advertising?

With digital signage becoming increasingly common in grocery stores, it’s worth asking which companies stand to benefit the most from this shift. There are a number of factors to consider, including: - The type of products that each grocer sells. While digital advertising screens can be used to promote any product, they are most effective when used to highlight products that drive sales. - The current advertising strategies of each company. Companies that are already using digital media effectively and regularly will likely see the most benefit from advertising on signage. - The size of each grocer’s existing customer base. Large companies with broad customer bases will be able to reach more shoppers through digital signage than smaller, regional grocers.

How Video Advertising Screens Drive Grocery Sales

Besides static ads, video advertising screens can also be used to promote products and brands. This type of advertising is particularly effective when the video is short, catchy, and relatable. Video advertising works well for grocery stores for a number of reasons, including: - Most shoppers visit a grocery store at least once a week. This makes video advertising a great way to reach a frequent customer base. - Video advertising can be used to promote specific products and sales, as well as brands. - Customers can’t ignore video ads. Research shows that video is 1,700 times more effective than text-based ads.

Convenience Stores: Where Shoppers Go to Shop and Eat

Convenience stores are the most profitable retail segment, representing almost $200 billion in annual sales. While grocery stores have traditionally been the domain of prepared foods and fresh produce, convenience stores have expanded their offerings to include a wide range of grocery items including fresh produce and staple goods. Convenience stores are increasingly becoming one-stop shops where shoppers can pick up a meal for dinner, fresh produce for the next day’s lunch, and a last-minute gift for a friend or co-worker. To meet these evolving needs, digital advertising at convenience stores is playing an important role in attracting customers and driving sales. Convenience stores have embraced digital advertising in a variety of ways. Some companies, like Sheetz and Wawa, are using digital screens to promote new menu items and special deals. Others, like 7-Eleven and Shell, are using video advertising to introduce new products and promote loyalty programs.

Bottom line

With 36% of grocery shoppers saying they’re more likely to buy a product if they see an ad while shopping, digital advertising is a proven strategy for boosting sales. Retailers that invest in digital advertising stand to benefit from increased brand awareness, greater sales, and a more positive reputation. Digital advertising is also a dynamic field that’s constantly evolving. New technologies bring new opportunities for retailers to reach consumers and promote their products and brands. In short, retailers that don’t engage in digital advertising risk missing out on the benefits that can result from these investments.

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