The cost of in-store marketing is not trivial, but the right approach can significantly reduce costs and increase revenue. A recent survey by A.T. Kearney and the Path to Purchase Institute reveals that most retail organizations fail to realize the full value of in-store marketing. This is largely because sales, marketing, and merchandising teams have different game plans. Often, each group aggressively pursues their own game plan, which leads to overlapping programs.
Register tape advertising consists of putting an ad on the receipts of national and local retailers. This marketing method works well for local businesses because of its low production cost. It uses messaging to create focal points and take customers on a journey through the store. The costs of this strategy are comparable to those of other forms of in-store marketing. The key is to choose the right approach based on the type of product and your marketing goals.
The percentage of in-store marketing will vary based on the type of retailer and the size of the store. However, a typical retailer will spend between three to five percent of sales on marketing. Spending more on marketing can make your business dependent on advertising, while spending less can result in decreased sales and traffic. For example, a retail store needs to generate $100,000 in sales per month to break even and make a profit, so the marketing budget should be around three percent of the monthly sales.