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How does one measure the return on investment (ROI) in POP advertising?
The practical way to measure ROI in POP advertising is to run small
scale control experiments in retail stores. If this is carried out
in a large scale then the cost would go up and then it wouldn't
make sense.
One
has to negotiate with brands, the retailers, manufacturers, independent
research companies to carry out a test. What we do is shortlist
around 20 stores and divide them into two groups of 10 and study
them for about a month.
The
first group will remain as it is and the second group will have
POPs installed in them. Sales are then monitored and all aspects
of seasonality are excluded. The effect is then measured after cutting
out the costs of Pops, design, installation, placing it with the
retailer and the disposal costs if any. The gross sales figures
are then measured. This will give us an idea of the role that Pops
played in the stores.
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