What is the greatest untapped opportunity with emerging media?

Bob Anderson: Certainly, social networks are a big one and so is mobile. At Stop & Shop, we have “Scan It,” which is our own in-store mobile device. We know that some of the strongest adopters of “Scan It” are also strong adopters of other technology.

As people become increasingly comfortable with their own personalized digital media, we’re going to present them with applications that are much simpler and personalized because they can tap into the knowledge we have collected with “Scan It.”

Dan Cooke: Without a doubt, it’s mobile. Of course, mobile media isn’t without challenges. Technology limitations include lack of carrier standards and the ability to scan a coupon delivered to a smart phone, for example. Cell coverage in-store and infrastructure, such as Bluetooth, are also issues.

Location tracking, as well as the “personal” nature of a mobile phone may also cause many to view these types of marketing messages as intrusive.

Finally, adoption requires behavioral changes. For consumers, it includes trip planning, list preparation and in-store usage, supported by reminders, as well as clear articulation and understanding of benefits.

Change is also required for retailers that are accustomed to handling paper coupons and promotions. It may also lead to checkout delays if they are required to instruct shoppers on how to redeem coupons.

Kevin Kells: In the past, most industries tended to focus on emerging media as a transactional or direct response driver. But people increasingly are realizing the brand-building promise of emerging-media platforms. That’s a big switch from a headset standpoint.

Brand-building and transactional are not mutually exclusive; they are highly linked. When shoppers are online or on-the-go with mobile devices, that follows directly to brick-and-mortar doors. They are walking up to the shelf with many new points of brand and category information in their heads. That’s a big change.

The question going forward is going to be: what value is your brand adding to their lives all along the path-to-purchase? How you answer and execute against that with emerging media will determine how you’re going to build your brands over time.

Jason Katz: The greatest untapped opportunity is to leverage emerging media, not only from a consumer engagement point-of-view, but also from a shopper engagement point-of-view.

In other words, the opportunity is to drive action, whether that’s to get on a list when shoppers are pre-planning their trips, drive them to a specific location or actually drive a purchase.

Are shoppers making as many decisions in-store as they used to?

Anderson: Pretty much every customer will say they have some form of a list. Whether it’s a list in their head or written on a piece of paper or entered into their phone or planners, they all start with some form of a list.

When they get to the store they are still making decisions as they go. Their list might say “cereal,” but then they have a full aisle of cereal to choose from. Shoppers like to browse and see the different options they have.

Consumer packaged-goods companies also keep launching new items, brands and extensions to help give the customer more choices. We continue to present those options around end-caps that offer a meal solution, for example. They have as many, if not more decisions, than ever. What we’re challenged with is to try to facilitate that process for them.

Cooke: A vast number of decisions are still being made in-store, which is why we continue to focus our efforts there. However, our research tells us that a large majority of shoppers are spending more time planning their trips.

Clearly, the economy continues to play a considerable role in these decisions. Much of this planning is driven by financial considerations and consumer desire to get the best value they can. This is significant because it’s altering behaviors. Even after the economy recovers, we expect to see this trend continue.

Kells: They are making many decisions in-store, but their final decision at the shelf increasingly is influenced before they get to the store. We call those influences “zero moments of truth.” Those are all the points along the shopper’s path-to-purchase that are gaining outsized influence in their decision-making.

Brand marketers are realizing that they need to be ready at those “zero moments of truth.” We know from a 2009 IRI study that 83 percent of consumers plan to make their purchase decisions before they enter the store. That was up from 60 percent just two years prior.

We think that’s being driven by the simple fact that consumers have access to more information that’s more easily accessible and better organized. They have vast networks of friends and peers with whom to share the information. We’re also seeing search and inquiries explode over the last few years around areas like product reviews, recipes and coupons.

Katz: The shopping dynamics have changed. Shoppers are using digital touchpoints more and more to pre-plan the trip, whether on the category or brand level. We’re definitely seeing a shift in dynamics based on technology where more purchase decisions are being made outside of the store.

But there are lots of things we can do — whether it’s to give shoppers a targeted offer or to develop a mobile phone application — to help reinforce the category or a brand. When we do that, we’re dramatically increasing the odds of a shopper’s final decision going your way in-store.

Is digital in-store media living up to its promise?

Anderson: “Scan It” certainly is working for Stop & Shop, but I don’t think the in-store networks have lived up to the promise yet. I say that because of the old adage in retail that “signs sell.” There was always this great promise that digital networks were going to replace paper signs, but they haven’t.

That’s not to take away anything from some of the great work that’s been done on in-store digital. Some of what Walmart has on its network is really nice. Certain brands have also built some great snippet-like ads that are highly relevant to the shopping experience.

We have a deli kiosk in our stores that does a great job for us. Self-checkout is also a form of kiosk. I may be pushing the definition a little bit, but as we look for ways to make that checkout process simpler and faster for our customers, we’ll look to some new and innovative approaches that make the customer feel more in control.

Cooke: We continue to see areas of success with in-store media but there is still room for improvement. When I think of digital in-store media, I largely consider interactive TV, digital signage, and kiosks to be the primary tactics — and each has its pros and cons. It fundamentally comes down to usability and relevance: Can it answer my questions? Is it there when and where I need it?

Achieving this requires a deep understanding of the shopper, and an immediate proximity to where the purchase decision is being made. I refer to this as point-of-service, and it’s the primary reason why I believe so strongly in the prospects for mobile. I see mobile as the way to bridge the proximity gap, working in concert with — and not at the expense of — other in-store digital media, ultimately to aid the shopper along the path-to-purchase.

Kells: I’ll hedge a little bit on this one. The technology platforms and devices are very cool. But what I think is often missing is the simple question of whether these kiosks and interactive displays add value to the shopping experience. Or, am I just forcing shoppers into my world, my rules and my technology?

There is a gap in terms of how well the technology fits with actual consumer behavior. Meanwhile, both consumer packaged-goods companies and retailers are severely under-leveraging the vast amount of shopper data that exists today.

That information is actually more valuable than any media solution. That’s an area that’s going to explode in coming years: making the media, whatever that device is, smarter based upon the information that we know about shopper behavior. That’s where digital in-store media is not yet living up to its promise.

Katz: There has been a lot of anti-hype about in-store digital media lately. I don’t know that they are scalable enough yet to really drive impact, but they are being used more strategically to be more relevant and engage shoppers.

For example, Walmart is succeeding with its Smart Network in two ways. First, it’s making the message more relevant based on a variety of variables, such as day parts, and even the weather.

They are also starting to put screens on end-caps — closer to where the actual final moment of truth is — versus just big screens throughout the store. We’re also starting to see more success with interactive kiosks and touch screens near the shelves, especially within the electronics, game and HBA categories.

What’s the best approach to innovation with emerging media?

Anderson: “Scan It” is a pretty relevant example of innovation for Stop & Shop because it took off from a number of different approaches that we were working on.

As people started to use lap top computers, we launched the beta form of “Scan It” in a tablet form. That evolved into an understanding of the form customers wanted from the device.

We combined that learning with the macro-trend of self-serve applications and began to expand our self-checkout lanes. At that point, we had a real good basis for the next evolution of what we should do. If you take the time to watch how your customers engage with these new media and devices, it’s a less risky proposition.

Cooke: There are three guiding principles that I always adhere to: First, follow your strategy. Innovate with purpose, and not just because you can. Otherwise, you run the risk of embracing a technology that’s in search of a strategy.

Second, start at the shelf and map back from there. Identify and define the consumer insight as concisely as you can. This will help to focus your solution.

Finally, test, learn and re-apply. At Kellogg, we strive to be nimble and responsive, and are willing to take a few risks. But that doesn’t mean doing so at the expense of the first two guiding principles.

Kells: From a brand and retailer standpoint, you just have to be concrete about your goals and what your brand stands for. You can’t boil the ocean and expect your digital campaign to be the Holy Grail of marketing. It’s not going to do the one thing that gives you the answer to everything you want to know.

You need to have a clear and concise understanding of what behavior you’re trying to change. You need to have a simple and easy way to measure that, and you need to be realistic. You should try a lot of approaches, but that doesn’t mean you should continually shift your strategy. And, as always, you need to try to get a sales lift where you can.

Katz: The best approach is to plan along the path-to-purchase, starting when shoppers are at home or in the office and pre-planning their trips. Then there are a variety of touchpoints, whether they be web-based or mobile. You need to integrate between the pre-planning, on-the-go and then the in-store touchpoints to reinforce the shopper’s mission.

Manufacturers need to start bringing digital expertise into the shopper-marketing teams because retailers are looking for innovation and shoppers are leveraging digital more and more. In the past, digital was sitting in the consumer promotion and branding components of the marketing mix. That expertise needs to be in shopper marketing and sales, as well.

What is the most important lesson you’ve learned about emerging media?

Anderson: One of the best lessons is to approach it on a supplementary basis rather than as a replacement right away. It’s hard because our whole business model was based on sending 14-page pieces of paper — circulars — to 12 million customers every week and then merchandising the stores based on that. But when customers all of a sudden say they don’t really want this 14-page piece of paper anymore it challenges the whole model and forces us to look at our marketing and advertising dollars differently.

You have to be prepared to allocate a certain number of dollars to channels that are just in their infancy and have realistic expectations about the results. But whatever we do we can’t stop looking at the new channels. If we keep finding relevant ways to engage with our customers, they will appreciate it. They also start to expect it.

Cooke: It’s critical to approach new initiatives that closely align with your overall corporate or brand strategy instead of chasing the latest technology or fad. However, to be effective in this space you also need to be nimble, adaptive, and have a hunger to learn.

At Kellogg, we talk about developing our “organizational dexterity.” In my opinion, this conjures up the notion of building a competency that can be executed with speed and agility.

Kells: The best thing I’ve learned is to move quickly, fail often, see what works best, iterate and learn from “the wisdom of the crowd.” Lose what’s not working and double down on what is working. And it’s got to be driven by data and not opinion.

To keep it in perspective, at most companies the planning window can stretch out for close to a year. But if you look at YouTube, Twitter and Facebook — these companies are five years old or less. What that means is that most folks’ planning processes are 20 percent of the entire life of those new, emerging media. There’s fast and there’s internet fast, and I think companies are going to have to wrestle that notion to the ground. How fast are they really?

Katz: The most important lesson about emerging media is to beware of shiny objects. There are some hurdles that emerging media need to clear before they can really be used strategically to drive results. Is there enough awareness and adoption so that it’s scalable?

Is it something that the shopper finds helpful and is actually influencing the purchase decision? Is it a priority for retailers? There are thousands of new media opportunities and you have to evaluate them rigorously before going forward with them.

A lot of organizations don’t necessarily know where to start and so they tend not to do anything. What’s most important is to get out there and try new things. A lot of new media touchpoints can be tested at a relatively small scale.It’s important not to wait. So, get out there and put your toes in the water.