Wal-Mart redesigns their network. Is it sans-PRN?

Ages ago, when PRN announced that they were going public, we surmised that it was on the strength of their deal with Wal-Mart, whose in-store TV network they had been running from its inception. Later, when Thomson acquired them for about $285 million, we guessed it was because their access to Wal-Mart gave them an inside track on a deal to re-build the network later. Well, if this article by Bill Collins (who was apparently wrangled into writing for DailyDOOH - no doubt Adrian has incriminating pictures of him or something) is anything to go on, PRN may not be as involved as they were before, as Wal-Mart seems to be building out the second (third?) generation of the Wal-Mart TV network on their own. Collins posits that a second generation network would have to:

1. Bring screens down to eye level
2. Build screens into endcaps, fixtures and shelving
3. Abandon the 2001-2002 “hang and bang” model where flat screens are hung nilly-willy around the store, mostly in locations that are difficult for shoppers to see
4. Control audio so that the soundtrack of these networks is welcomed by shoppers and store employees alike
5. Pack merchandise around the screens and speakers, so that the sound-and-motion media serves a useful purpose for both marketing and merchandising just as conventional Point-of-Purchase displays do

In other words, follow lots of the best-practices that we've all been talking about for years :)

And it looks like metrics company DS-IQ managed to work their way into the deal, as, "in his February 2008 presentation, Wal-Mart’s Mike Hiatt gave repeated plugs to DS-IQ, explaining how DS-IQ’s IT system proved conclusively to Wal-Mart executives that when quality content is screened on the network, sales of the products that are advertised on the network increase in real time."

While I'm glad to see Wal-Mart investing in retail media even during these tough economic times (especially given that so much of their revenue base is in the US), I do hope that PRN will continue to provide some management oversight, if for no other reason that they've been at it long enough to really understand what works (and what doesn't) in-store.

Tags: digital signage, in-store TV, Wal-Mart, PRN

Gamers already getting riled by new Gamestop in-store TV network?

Kotaku, a popular gamer's blog, noted (as many others did) that Gamestop would be installing a new in-store television network as a part of CBS Outernet. While their coverage didn't bash the network too badly, many of the comments left after the post were decidedly less enthusiastic about the prospect. Among the more troubling:

Indy_aka_Rex says:

Being a Gamestop employee... I just have to say the following: GAMESTOP TV MUST DIE! Please lord.... kill it, listening to that crap nonstop, 8 hours a day for a month... hurts.

hk458 says:

One more reason to stay away from those stores.

Komrade_Kayce says:

You guys dont know hell until you have to listen to the same game previews repeat for eight hours a day, over and over and over and over and over until you want to choke whoever made the Age of Conan commercial because 'BAH YOU MADE ENOUGH NOISE TO WAKE A DRUNK' rings in your head endlessly.

All_Thumbs says:

If it's so bad, why don't you just sabotage the equipment? Organize a nationwide 'failure' of this advertising bullshit everywhere. Gamestop, 7-11, the gas stations, everywhere they have those crappy canned ads constantly trying to gain a foothold in your conscious and unconscious mind. It will only get worse and worse. Wait for nano-tech. You won't be able to buy anything or go anywhere without built in streaming ads embedded. Hell, why not include them in your nano-tech health supplements? Won't it be great when the ad agencies can attach their message directly to your optic and auditory nerves? Unless the monsters subjecting you to it are made aware that you won't accept it anymore, don't be suprised...

Or, yeah, just tune it out.

And there are more... lots more. I don't know if Kotaku just attracts more easily irritated gamers than the norm, but if not, the Gamestop network could be in for some challenges. If nothing else, Gamestop needs to take a look at how their current network works -- since there are clearly plenty of detractors out there -- and maybe take some of the complaints above as constructive criticism (that last one about organized sabotage aside... that guy's just nuts, albeit funny nuts). But this hearkens back to one of the points I find myself constantly making when talking about digital signage with people just getting started with a project: the network must align the interests of all involved parties... ALL of them, including the viewers. Too often, somebody will start down the path of installing an in-store TV network, they'll elaborate the expected benefits to advertisers, to the venues, to the network owner/operator.... and never even mention the viewer. Guess what, folks: that attitude is going to get you a big, expensive, inefficient network, and hoardes of displeased patrons, some of whom will leave their feelings on Kotaku (apparently :) Others, though, may just stop shopping with you altogether.

WireSpring's digital signage page, aside from hocking our wares, is quickly becoming the place to list our DOs and DONTs when getting started. If you're working on a project, I definitely recommend you check out some of the articles there.

Tags: digital signage, in-store TV, gamestop

Target launches another in-store TV channel, this time in pharmacies

According to the In-Store Marketing Institute, Target is testing a new addition to its Channel Red in-store TV network that will be put into 100 pharmacy departments (to start) and will focus on, "health and wellness products across various categories and departments, including apparel (the chain's exclusive Champion C9 line), electronics (Nintendo's Wii Fit video game) and grocery (organic SKUs from private label Archer Farms). The network lets the chain 'bring its health and wellness strategy full circle,' according to a Target spokesperson."

As we all know, wellness is in right now (sounds silly -- shouldn't it always have been?), and Target is right to try and capitalize on the trend to the fullest extent possible. We've seen a huge surge in activity in medically-related digital signage networks over the past 9-12 months, I'm guessing for the same reason. But while the medical-ish networks always try to hide the consumerism stuff behind educational and informational content that's medically relevant, it's unclear what content approach Target will be taking with their wellness channel. Will it just be commercials? Will it be something quasi-entertaining, like what they have running elsewhere on channel Red? Will it be something entirely new and exciting? I'll have to wait until there's one in my area to check out, but if anybody has seen the new channel in place, leave a comment and enlighten us all.

Tags: digital signage, in-store TV, target

POPAI's introduction to digital signage webinar coming up on June 12th

This post probably won't be appropriate for 90% of the audience of this blog, considering that I know lots of you are already experts on all things digital signage. However, if you have a client, partner or other interested party that's starting to explore the exciting world of digital out-of-home media, POPAI's holding the first of what will be many "Digital Signage 101" or "Intro to Digital Signage" webinars on June 12th.

Specifically designed to help newcomers see past the industry hype and focus on the projects, business cases and best practices that have been successful in the real world, POPAI's Introduction to Digital Signage webinar is a great way to spend an hour of your time -- and only $50 -- to jump-start your understanding of what works and what doesn't in the digital signage world.


The topics we'll cover include:

• An introduction to the digital signage market with some basic market history and analysis,
• A look at some of the most common usage scenarios,
• An explanation of the components used in typical digital signage networks,
• A discussion of the benefits and drawbacks of using digital signage, and
• An examination of some of the most common pitfalls and problems that occur, and ways to avoid them in the first place.

So please join us on Thursday, June 12, 2008 at 1:00pm EDT

If you're interested, you can click here to sign up now!



Tags: digital signage, in-store TV, electronic billboards

Sorenson finds coupons, signs beat in-store TV and audio

By now we've heard lots about the in-store measurement efforts from Nielsen (PRISM) and POPAI (MARI), and we've even seen a bit of data from both, but as AdAge tells us, TNS Sorenson has stepped up their efforts, and is providing some very interesting data on what works -- and what doesn't -- when marketing at retail.

Some of Sorenson's research echoes results from the PRISM pilot data released earlier this year. For example:

[s]ome of the more-established mainstays of category promotion, such as in-store sampling and instant-coupon machines (from News Corp.'s SmartSource) resonated well with consumers in surveys. But some applications more like traditional media advertising, including in-store TV and floor ads, fared worse.

I'm looking around for the data or an executive summary of the report to figure out just what exactly "fared worse" means, but no luck so far. Still, this shouldn't come as news since we've seen a number of reports in the recent past indicating that traditional in-store promotions continue to perform well (and have a gigantic footprint, economies of scale, and the benefit of expert practitioners). Additionally, Sorenson found the most influential media to be (in order) in-store samples, package ads, coupon dispensers, in-store fliers and end-aisle displays. The least influential were ceiling ads, in-store audio and floor ads. The stuff that we're typically intrested in -- in-store digital signs (#13), other video displays (#14) and checkout-lane ads (#15) were all towards the bottom in terms of relative effectiveness.

Sorenson indicated that, "relevance is key to any media working in-store... so the more closely aligned the ad is with the category and product, the better." Additionally, many newer in-store media (particularly digital signs) fared poorly, he feels, because of logistical challenges that often leave the screens hanging from the ceiling instead of placed in a better locale, such as the spot approximately 40" above the floor known to be where shoppers are known to focus their attention.

Clearly, execution of the promotion program is just as important as the medium the program will be running in (especially true since so many programs are mixed-media nowadays), so I'd have to recommend readers take these results with a grain of salt: marketers and retailers have a very solid understanding of how to make items sell on endcaps and in aisles. On screens near the store entrance or dangling from the ceiling, there are a lot more unknowns, and as Sorenson has stated, that means that we're starting from a disadvantage.

Tags: digital signage, in-store TV

Dollar General adds in-store TV

According to the In-Store Marketing Institute, Dollar General is rolling out an in-store TV network as part of its, "increasingly brand-embracing growth strategy." The first 500 stores were outfitted with Dollar General TV, or
DGTV in March. The network is being installed and managed by SmartPic
Advertising in Sarasota, FL. Content will be five-minute loops of
vendor- and retailer-supplied clips running on 37-inch Panasonic plasma
screens placed throughout the stores. The article notes, entertainingly, that:

DGTV is different from other existing in-store networks because it
integrates promotional content with both in-store programs and online
activity, according to SmartPic ceo Jim Elliott. "Dollar General asked
us to help them rebrand the shopping experience," Elliott said. "We
wanted to do more than just throw up a monitor and some ads."

Yeah, I've never seen that anywhere before. I wish there was a way to indicate that I'm rolling my eyes in text. To be fair, the network is employing some clever stuff, including "a three-dimensional
treasure chest that kids are encouraged to search for within the store.
The dispenser holds tokens redeemable at checkout for vendor-supplied
prizes, such as candy, snacks or toys. Each store has one treasure
chest, which is attached to a display promoting DGTV's 'featured vendor
of the month.'" Granted I could see that promotion backfiring in a bad way (especially if the logistical considerations aren't properly handled), but still, they're showing some effort.

As for the economics of the network, each five-minute loop (rotated monthly) will contain:

• 2 30-second ads
  for main sponsors,
• 12 five-second static shots for the "featured vendor
  of the month"
• Additional five-second spots for additional advertisers.
• 12 five-second spots for Dollar General's internal promotions

For the 500 store pilot, rates are:

• $187,500/month for main sponsors
  ($375 per store)
• $147,000/month for the "featured vendor" ($294 per
  store)
• $24,500 for five-second statics ($49 per store)

Main sponsors and featured vendors receive category exclusivity, but they're obligated to sign on for 3-month clips. Of course, whether or not this approach can work at all in a dollar store format (which are, admittedly high margin and high volume, though typically low average ticket size) still remains to be seen.

Tags: digital signage, in-store TV

Adweek: GameStop TV boosts sales 19-36%

GameStop TV, while not technically falling under POPAI's definition of digital signage (though that didn't stopping them from taking home the gold medal at the Digital Signage Awards last year), is apparently showing some seriously good performance characteristics, at least if this article by AdWeek is anything to go on. The article notes that:

The [in-store TV] strategy appears to be working. Last week Nielsen Media Research released a study showing that the titles advertised on GameStop TV showed an increase in sales of between 19 and 36 percent. Products mentioned during the broadcast, but not in specific ads, also got a boost, although it was not as significant. On average, the unadvertised products saw a sales spike of 20 percent.

Several different game genres, including sports, action and first-person shooters, were studied. Each showed similar increases in sales. In addition, the amount of time people spent in the store grew by about 50 percent. (Nielsen Media Research, like Adweek, is part of the Nielsen Co.)

I'm not sure that you'll find many retailers or product manufacturers who feel that a "mere" 20% sales spike is insignificant, but if these numbers are to be believed and products featured on the programming routinely do see lifts of 30% or more, GameStop (and Channel M, the company that makes their content) may be running the most successful in-store TV network that I've heard about.

Nielsen Media Research is known for being pretty thorough and regimented, so I'm going to assume that their lift numbers are properly controlled-for and exclude things like newly-launched products that are often accompanied by massive multichannel campaigns and are notoriously difficult to account for.
If that's the case, we all need to run around shouting these results at the tops of our lungs. For now though, I'm going to keep the irrational exuberance to a minimum and see if I can find some more data on this.

Tags: digital signage, in-store TV, GameStop TV

Wal-Mart TV lets advertisers surprise, delight and experiment

By now anybody who frequents the digital signage industry is probably sick of hearing about Wal-Mart TV. After all, this decade-old in-store TV channel has probably made the news more than all other digital signage networks combined, but with an average weekly audience of over 120 million viewers, it's just too tantalizing and too noteworthy to leave alone.

Thus, I was unsurprised to see yet another article about Wal-Mart TV and its management company, PRN, in the news today, this time in USA Today. While the timing seems a bit odd (PRN hasn't announced anything new since the major upgrade to the network it started last year), the focus of the article wasn't on the screens or the technology or anything else nuts-and-bolts. Instead, it was a look at some of the more innovative ways that marketers are using to try and reach consumers as the media viewing marketplace becomes increasingly more fragmented and difficult to reach. Look at some of the cool marketing experiments that the article profiles:

• Frito-Lay. A 13-minute, high-definition clip of [a special Tim] McGraw concert will run continuously on Saturday [3/31/07] in Wal-Mart electronics departments, near displays that showcase both Lay's chips and McGraw's new CD, Let It Go.

The video and display also highlight charity work by McGraw and Lay?s for the Make-A-Wish Foundation.

Lay's before has run mainly traditional commercials on Wal-Mart TV. "This is certainly a very different approach" for Lay's marketing, says Justin Lambeth, director of marketing for the brand.

• Pfizer's Listerine. The company used the new end-of-aisle TVs devoted to a specific product display to show video that illustrates how Listerine Agent CoolBlue pre-brushing rinse turns plaque blue. Listerine saw it as an opportunity to educate the shopper. "When you see that bottle on the shelf, you're not really aware of what it does," Daly says. "This product really needs an explanation."

• Viacom's Nickelodeon. The kids network created video to promote Saturday's Kids' Choice Awards. Wal-Mart, a show sponsor, provided the TV time, set up related in-store displays and is selling exclusive Kids' Choice Awards products, such as CDs, says Leigh Anne Brodsky, Nickelodeon consumer products president.

• Unilever's Dove. The beauty care maker also has created custom advertising tailored for Wal-Mart TV. One ad, a part of Dove's Campaign for Real Beauty, has Wal-Mart workers proudly talking about their body curves. Unilever has dramatically increased its use of Wal-Mart TV in the past few years, says Joe Cavaliere, Unilever's head of customer development.

While there was time when many in the industry speculated that Wal-Mart was using strong-arm tactics to coerce packaged goods manufacturers to advertise on their network, the general wisdom today is that with a more compelling network and more generally complacent viewing audiences, the digital signage network is a much better value, and a great opportunity to reach some otherwise unreachable consumers.

Of course, not everyone things the network is a good thing, as evidenced by this comment left at the USA Today site:

Does anyone else find this whole "Walmart TV" thing kind of creepy ? Of all of the annoying things that Walmart does,this is one of the worst. I am tired of being pitched to. I want to shop and not have this "Big Brother" screen up there telling me what I need.

As Wal-Mart, Target and others expand their use of in-store digital media systems, this concern will come up again. Likewise when they start getting serious about mobile marketing and try to beam content to shoppers' cell phones and PDAs. But for now, I'm encouraged by the risks and experiments that some marketers have been willing to run by taking advantage of the strengths of in-store digital signage. My hope is that as more marketers see what Wal-Mart and friends are doing, they might be willing to open up a little.

Other articles about Wal-Mart TV include:
Wal-Mart and Saatchi X to rethink the store experience
Wal-Mart: In-Store Media is the Most Important Channel
Is Wal-Mart's in-store TV network really more effective than TV?

Tags: Wal-Mart TV, PRN, digital signage, in-store TV

Wal-Mart offers local businesses chance to advertise on in-store TV network

Wal-Mart's in-store TV network has been the focus of many articles that try to show what a big -- really big -- digital signage network can look like. We've seen it go through a number of physical changes and content changes, and with a recent announcement that Wal-Mart is stepping up its in-store digital media with even more screens, it looks like the world's largest retailer continues to believe in the benefit of retail digital signage.

In a new effort to both appeal to local businesses (in combination with its expansion into more urban areas, which are still dominated by smaller retailers), and make good with the locals (and maybe to find new ways to monetize the Wal-Mart TV network in the future), the Chicago Tribune notes that Wal-Mart will begin testing a service where local businesses can buy ad time on Chicago-area Wal-Mart stores to promote themselves. From the article:

"[Wal-Mart] is offering to pay for local newspaper advertising to showcase the independent stores on Wal-Mart's in-store TV network and donate funds to the local chambers of commerce. The catch: The program is only offered for economically disadvantaged inner-city neighborhoods.

"Chicago is the first of 10 urban markets slated to take part in the program. The remaining nine cities will be announced in February, said Todd Libbra, vice president of operations in Illinois for Wal-Mart, at a press conference Thursday at Grandma Sally's restaurant on Chicago's West Side.

"'What we're looking to do is increase jobs,' said Libbra. 'We're looking at creating economic opportunity surrounding our store.'

"Critics, however, are skeptical of the retailer's intentions and describe the community investment as a publicity stunt to burnish its ailing reputation."

Clearly there's more to this situation than meets the eye, but then again this isn't the first time that Wal-Mart has given local newspapers and companies access to their retail media network.

Tags: Wal-Mart, Wal-Mart TV, in-store TV, digital signage, retail media network

Channel M acquires ScreenPlay

According to this MediaPost article, digital signage network owner Channel M has acquired content producer ScreenPlay. Under the arrangement, ScreenPlay will be the exclusive content provider to Channel M, and since there's little overlap of the two firm's capabilities and clients, nobody is expected to lose their job (the total head count is expected to be around 60).

Acquiring a content creation house to bolster your internal ad sales or network deployment skills seems to be something of a trend now, though to their credit the folks at ScreenPlay have been involved in a number of digital signage projects over the years as well. While being owned by a network might limit ScreenPlay's ability to attract other (potentially competing) digital signage clients, it may also be that the additional expertise they gain gives them an advantage in the marketplace. As for Channel M, they must feel that it will be somehow cheaper or better to pay another 30 people than keep outsourcing their content production.

Tags: digital signage, out-of-home advertising, retail media, in-store TV