The Resurgence of In-Store TV
Joel Hopwood, head of Tesco Screens, dunnhumby, says that in-store TV is a highly effective method of targeted marketing, and that in this ever more competitive world for brands, the format is here to stay…
It is established fact that the media environment today is more competitive in terms of attracting and retaining consumer attention than it has ever been. The number of media channels in recent times has exploded – some estimate that the average American is exposed to over 3,000 commercial messages per day. In this difficult climate, where consumers have more control over which messages they choose to be exposed to than ever before, it can be tricky for a budding channel to stand out.
This was precisely the challenge faced by in-store TV a few years ago when the medium began to be introduced across the UK. Indeed until recently in-store TV has garnered something of a bad reputation in some quarters, as early experiments with the medium didn’t live up to initial promise. So just what has changed in recent times to turn its fortunes around?
In a word: insight. Across the media community, marketing methods are being held to more detailed account, especially given the current economic downturn. Communication channels across the board are under pressure to prove their effectiveness in real terms, and this is no different with the current incarnation of in-store TV. With media-savvy consumers, demanding clients and real pressure to drive sales, in-store TV has to be accountable and effective to work – and is working hard to become so.
Last year we took over management of Tesco Screens, the UK retailer’s network of 5,000 screens across 100 stores. Moving away from the previous framework for the medium, we collaborated with Tesco to make Tesco Screens a more tailored content proposition. Rather than simply running a reel of ads in-store, advertisers and brands now have a lot of flexibility when it comes to running campaigns on the channel. Backed by the insight that Clubcard can provide on 13 million customers across the country, campaigns can be tightly targeted to run in certain stores to reach certain demographics, and even at certain times of day to suit peak shopping hours. Activity can support a range of different marketing objectives, including new product launches, promotions, seasonal themes and other in-store events as well as linking to above-the-line activity.
Campaigns on Tesco Screens are deliberately designed to fit within the store’s established in-store promotional format to dovetail with the familiar shopping experience – for example, BOGOF offers run on the screens with red and yellow creative, which customers instantly recognise as meaning discounted product offers. However advertisers can also choose to run ATL campaigns for more brand or product specific objectives, or even a new ‘brand sting’ format, which uses Flash animation and sound for short, eye-catching creative at point of purchase. Also, campaigns can be further tailored by location to maximise campaign effectiveness, running in the ‘power aisle’ for maximum reach for example, or at the tills for upcoming new product launches that cannot be bought “now” but will be available next time the customer visits.
The key to Tesco Screens’ success lies in the insight that backs the framework. Through Clubcard, the effectiveness of in-store campaigns can be linked to sales. Indeed Tesco Screens is already delivering results for brands, with average sales uplift on ‘new’ and ‘promo’ campaigns of between 5-8%, rising to 15-18% for seasonal activity. The brand stings format has achieved sales uplifts of up to 25%.
Equally, Tesco Screens is set up by understanding how customers shop and the kind of information they are looking to receive in-store – in short, the Screens network is geared towards giving them the information they need to make their shopping experience better. And this is why the medium is proving so useful for brands – in-store screens have evolved to become much more of an integrated part of the shopping experience, working for he advertiser because they work for the shopper. This evolution is the core of the burgeoning medium’s success, and I firmly believe that in-store screen networks will continue to go from strength to strength.