Over at the Ageless Marketing blog, David Wolfe has been schooling the major television networks on the need to increase their brand resonance in order to avoid extinction. While the major television networks may be on the endangered marketing species list, the Wal-Mart TV network seems to be resonating with advertisers.
According to the Wall Street Journal, Wal-Mart TV airs commercials from 110 advertisers, up from 50 advertisers three years ago. Media schedules cost advertisers anywhere from $50K to $300K for a four-week flight on monitors located throughout 85% of the 3,000 Wal-Mart stores in the U.S. And according to Brandweek magazine, Wal-Mart TV reaches 100 million shoppers/viewers per week … that’s a shade below the reach numbers of the major television networks.
Research commissioned by Premier Retail Networks (PRN) and conducted by AC Nielsen shows “… the average recall of a brand advertised on Wal-Mart television is 66%, compared with 24% for brands advertised on in-home television.” [source: “Wal-Mart Adds In-Store TV Sets, Lifts Advertising, Wall Street Journal (Sep 22, 2004)]
Can you smell what the researchers are cooking?
Come on … the marketers at PRN and the researchers at AC Nielsen have to be cooking the cross-tabs. I ain’t buyin’ that brand recall from commercials shown in Wal-Mart stores have a 66% brand recall.
What do you think?
WalMart has in store TV's? We have a new Supercenter near us, and although I try to avoid it because of the crowds, I've probably been in the place a dozen times and I don't even remember seing the in store TV's - let alone the ads on them.
Posted by: Chris | September 24, 2004 at 09:31 AM
I'm kinda with Chris on this. I'm probably in Wal-Mart a couple times per month. I vaguely remember seeing TV monitors, but I don't remember if I've ever seen anything playing on them. So, from this consumer's experience, I'd have to wonder about those results as well.
Posted by: Paughnee | September 24, 2004 at 09:46 AM
Do you believe the brand recall numbers from Nielsen and PRN?
About as much as I believe political campaign commercials.
Do you think running television commercials on an in-store advertising network is an effective marketing spend?
Highly doubtful. I can't see many shoppers suspending their their shopping activity to pay serious attention to in-store ommercials.
Do in-store television commercials enhance or inhibit your shopping experience?
They irritate me -- truly!
I think Heisenberg's principle of uncertainty is at work here: the act of observation is biasing results toward researchers' expectations.
Posted by: David Wolfe | September 24, 2004 at 10:26 AM
Target does a good job with this in their music/CD section.
I must not be part of the designated audience since the music selections played have never moved me to purchase.
But the monitors have caught my attention.
This is slightly different and more targeted (no pun intended) tactic than what Wal*Mart is doing since this is like having a VJ (video jockey) right there in the aisle making recommendations.
Posted by: Brand Examiner Paul | September 25, 2004 at 02:23 AM
I think Walmart TV has a lot of benefits/potential - but I agree the hype is a bit overdone.
Here's some key OTHER reasons why Walmart TV is growing as a focus of our dollars:
- Since Walmart TV is classified as a "media buy" rather than "customer marketing funds" we are allowed to spend extra money with this retailer without anti-trust concerns.
- #1 customer by far, if they want it we pretty much have to do it.
- Walmart actually tells us they like this because it becomes a tool for them to train their own people. If you think about it, not a bad low-cost education tool - blaring our commercials endlessly while they work.
- It can be a way of easily using customer marketing funds. These funds are allocated based on volume sold. Walmart is the biggest customer so they get the most funding. BUT Walmart does very little in-store marketing and they have so much customer marketing money that they often don't know what to do with it. Throwing it into Walmart TV is an easy answer.
Posted by: Brand Guy | September 26, 2004 at 07:00 AM
I'm with a UK start-up creating an in-store medium at shelf edge.
Do you believe the brand recall numbers from Nielsen and PRN?
Who cares any more about brand recall. Everyone has heard of cancer but there is o demand for it.
Smart people measure views and sales. I talk to lots of small manufacturers and after finally striking a deal with a supermarket for distribution they just want their products off the shelf and in the basket.
This medium is going to be the brand manufacturers version of google pay per click as you can link this media spend to footfall, transaction and epos data.
Do you think running television commercials on an in-store advertising network is an effective marketing spend?
Yes, our early trial results indicate increased sales in volume and value. Results vary on running a brand only campaign or an offer eg: 8 cans for £5.
Brand owners can now influence sales with shoppers (instead of aiming at viewers sitting on the coach not in a buying mode)
Do in-store television commercials enhance or inhibit your shopping experience?
Wrong question- Does in-store TV hurt you or help you?
It helps remind me to collect the Pampers nappies. It helps remind me to stock up on milk for the kids cereal tomorrow morning. It points me in the direction of the healthy meal deals because I am a stone overweight.
My 2 shillings worth.
Posted by: Fraser | September 27, 2004 at 09:24 AM
The TV's I have seen at our WalMart SuperCenter are positioned very high, are normally blaring something, and when shopping, I am too busy to stand and listen to a commercial about anything. In addition, there is usually so much noise in a WalMart (parents, kids, noise) that one can hardly hear what is on the TV. A better use would be some very quick 10 to 15 sec. blurps about specials running in the store instead of a 30 sec or 1 min. commercial.
Posted by: carol | September 27, 2004 at 05:51 PM
Facts
Do you have any serious study , of an increase in sales in a brand or product
for being in Wal Mart TV spots ?
Posted by: alfredo siebert | November 11, 2004 at 05:22 PM
What metrics are they using to measure product sales improvement and banding success?
Posted by: Jake | February 04, 2005 at 06:32 PM
Our company is running a similar project in Italian pharmacies and we have reported a varying sales lift from 28 to 96 % depending on goods and strategies.
Posted by: john | December 15, 2005 at 08:41 AM
Everyone on this point totally missed the fallacy in the 66% figure. They probably posted the interviewers right outside the store and queried them.
Posted by: Mick | August 07, 2006 at 04:23 PM
As with most of the supporting data in this industry, it is all in one way or another skewed (so that should answer if I believe the recall numbers). At the end of the day, it all boils down to impressions, use of product, quality of product, price point, and end user.
As with most shoppers, I try to avoid Walmart as much as possible, which still amounts to me going there 1-3 times per month. Question - Now why do we avoid walmart? Answer - Because of the long lines.
As with most shoppers in line, we find ourselves observing the scenary and/or just wandering thoughtlessly. Now of course, if I am in line, I am preparing to purchase my goods; and therefore my shopping is pretty much done. However those 10 to 20 minutes that I am in line, I am vulnerable to branding, product info, product demonstrations, digital point of purchase media, news, weather, miscellaneous entertainmet, etc.
With that said, I do believe this could be an effective medium to reach mass consumers. The rest is on the placement & functioning operation of the screens, and the creative; which will not only inform consumers of the product, but can increase their shopping exerience by intriquing them during idleness in line or pointing them in the right direction of a new product as they scroll down the aisles - Everybody gets tired of the same old thing, and as much as consumers may hate to admit it, in some shape, form, or fashion they want to know about the hottest new product on the market - So catch consumers where you can.
Posted by: Napoleon | January 29, 2007 at 06:17 PM
hey i got my walmart tv on this site, walmart homepage. Very nice tv!
By the way, nice site!
Posted by: Ryan | July 03, 2007 at 12:12 AM
most shoppers, watch tv add to review some product. for me, i check http://www.rollingpricesback.com for reviews and then i buy. I love it.
Posted by: walmart homepage | August 09, 2007 at 02:27 AM
CPM? can anyone point me to where i can find accurate CPM figures for in-store video adverts? thx
Posted by: geoff | February 04, 2008 at 02:53 PM
im intrested in partnering with a foreign investor and have something of that nature here in South Africa.The industry dynamics might not support such a venture in the states and possibly europe, but here in S.A, consumers are dieing to have something of that sort.
If intrested contact me: jmigeri@webmail.co.za, and have Retail TV as the subject.
Posted by: joseph migeri | May 15, 2008 at 09:06 AM