POS Advertising Budget: The Foundation of Any Retail Business

The advertising budget is one of the most essential components of a retail marketing strategy. That’s mostly because the budget affects not only the diversity and extent of the advertising activities but also the revenue and profit potential.

New research from Gartner confirms that marketing investments can have a significant positive impact on revenue and profit margins. However, developing a budget without justifying the marketing spend is one of the biggest mistakes a retailer or brand could make.

But Leon Edwards has pointed out another essential aspect that shouldn’t be overlooked: justifying the marketing spend is almost impossible without working out “what the return is”.

Although it can be difficult to connect spending with the value received from certain marketing initiatives, and determine whether a sales increase or decrease relates to particular marketing tactics, business professionals should try to connect all the “dots” in their retail environments in order to decide if their marketing efforts are really returning any positive results.

POS displays are just some of the “dots” a brick-and-mortar retailer or brand should analyse in conjunction with its marketing spend and advertising budget.

Because POS display solutions enable brands and retailers to move more products off the shelves into the shoppers’ hands as well as communicate their “stories” and values to customers, they’ve proven more lucrative compared to other marketing tools.

Oral B point of sale

Moreover, POS advertising allows retailers and brands to maintain control of their messages at the place and time of the final purchase decisions. POS displays are also versatile enough to:

  • effectively present information in different formats, facilitating the selling task;
  • enable brands and retailers to better respond to ever-changing demands and expectations;
  • make shopping entertaining and remove some of its frustration.

The retailers and brands that pair attractive, relevant, and easy-to-use POS displays with an entertaining and consistent marketing plan are more likely to attract customers. Since more customers lead to higher sales, ROI and profit figures, POS-related expenditures not only justify the marketing spend; they’re also well worth it.

However, there’s something we must admit: justifying marketing budgets is sometimes harder than many business professionals think. To help, Leon Edwards advises business professionals to test, for instance, three prototypes and then other three that are different, and “see which one works better”.


key take awayKey takeaway:

Prototyping and testing different ideas represent the best way to integrate audience feedback early in the decision-making process. By gaining deeper insights into your customers’ needs and wants, you’ll be able to choose a solution that best fits your shoppers’ requirements and promises to generate a positive ROI—and this is what justifies the marketing spend.


If you’re looking for a POS display supplier able to provide the right in-store solutions that can efficiently promote your products and brand image, DisplayMode is ready to undertake any small- or large-scale in-store display project. To learn more about the DisplayMode difference, we invite you to get in touch with our friendly and experienced team today!

FURTHER READING:

There are six articles in this Leon Edwards interview series: