STUDY SHOWS POP GAINING GROUND AS MEDIUM

By Published on .

Sales of point-of-purchase ad materials grew 6% to $12.7 billion in 1996, according to the Point-of-Purchase Advertising Institute's annual study.

The study, unveiled last week at POPAI's Marketplace '97 trade show in New York, said those revenues rank POP as the fourth-largest ad medium, trailing only network TV, spot TV and newspapers.

POP's largest categories in 1996 were restaurants and foodservice, up 8% to $1.1 billion, and apparel and footwear, up 6% to $1 billion. The fastest-growing segments were fresh/frozen/refrigerated foods, up 15% to $296 million, and professional services, rising 14% to $621 million.

POP advertising is gaining in importance thanks largely to more research showing its effectiveness and a drive for efficiency among marketers, said convention attendees.

BETTER MEASUREMENTS

Marketers are getting better at measuring the effectiveness of POP advertising and quantifying the results, said David Schultz, VP-marketing at Tusco Display. He touted POP as cheaper and more effective than other vehicles, especially as print and broadcast media become more fragmented.

Douglas Leeds, chairman of Thomson-Leeds Co., said that in food buying -- where 88% of purchase decisions are made in-store -- the medium provides the last link in the brand-building chain.

"Up until that point, [brand building and advertising are] an academic exercise" said Tom Harris, president of POPAI's Australia and New Zealand chapter.

Large retailers such as K-Mart Corp. and Wal-Mart Stores are leading a trend toward micromarketing in POP, Mr. Leeds said.

In many cases, they're requiring displays be custom-made for their stores, he noted. For example, said Mike Lauber, past chairman of POPAI, Rubbermaid now creates custom displays for those two retail giants, which have entire

In this article:
Most Popular