Thursday, October 05, 2006

More details on the Wal-Mart Mexico digital signage network

It feels strange to be blogging about one of our own deployments, but this article from Chain Store Age has some great information about Wal-Mart Mexico's digital signage network. Here's a quote from it:

"The network is being rolled out simultaneously to the Supercenter and Bodega Aurrera stores. It is expected to be in operation in the full 300-plus stores by early November," said Axel Vera, operations manager, in-store TV, Televisa, S.A. de C.V., which is partnering with the retail chain in the application.

The Wal-Mart de Mexico in-store television network is somewhat unusual in that Wal-Mart is not taking on any of the financial risk associated with such ventures and has little role in its day-to-day operation. Instead, Televisa, the biggest media company in Latin America, is paying all of the costs related to the network under a revenue-sharing deal with Wal-Mart.

"We are providing Wal-Mart with a complete turnkey solution," Vera explained. "We are investing over $50 million in hardware installation and in operating the network."

In return, Televisa will share the advertising revenue generated by the network with Wal-Mart. The company’s existing sales force will sell the ad space, along with third-party point-of-purchase partners.

"The return for us will also be in the exposure," Vera said. "With this network, will be reaching almost 40% of the people who live in this country."
It seems pretty crazy to me that a single chain could reach 40% of a national population, though PRN has noted that the combined reach of their networks reaches a similarly amazing percent of the US population. With that kind of audience, Televisa has the opportunity to advertise and expand the reach of its products (TV programming on its networks) while also offering a significant benefit to Wal-Mart and the CPGs. Hopefully they'll be willing to share their data with the rest of us when they've had time to fully evaluate the power of the network.

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