Smart mobile advertising at the point of purchase: Digital shopping cart displays increase sales

Digital innovations in retail environments can significantly influence product choices and consumer spending. This research examines the effects of mobile, location-based advertisements delivered via digital shopping cart screens in a real-world field quasi-experiment. Results reveal two key effects on purchasing (i.e., quantity, variety, and spending). First, location-based digital cart ads increase purchase quantity and spending on advertised products, consistent with enhanced awareness and consideration at the point of purchase. Second, these ads increase quantity, variety, and spending on non-advertised products within the advertised category, indicating spillover effects beyond the focal product. To investigate these effects, we tested two ad formats: centrally displayed ads and peripherally displayed ads aligned with product locations in the aisle. Both formats significantly increased purchasing relative to shopping carts without ad displays, but peripheral ads did not reliably outperform central ads. Exploratory analyses further show that the effect of cart ads remains robust across store zones and throughout the shopping journey. Together, these findings show that in-cart ads not only drive sales of promoted products but also increase overall purchasing within advertised categories, highlighting the profit potential of in-cart, location-based advertising.