Analysis: Television a turn on in stores Anila Azhar
Advertising legend David Ogilvy once said: "Never stop testing, and your advertising will never stop improving." While in-store TV advertising is hardly what anyone would call the next big thing, marketers are increasingly experimenting with a media platform that can target consumers when they are most vulnerable - close to the point-of-purchase.
Advertising agency DDB desire to launch a TV network within its client McDonald's national creative director and vice chairman at DDB believes the best way to communicate with the food giant's 1.2 million customers will be via 15-minute programs backed by advertisers.
“Fifteen minutes is what I am thinking at the moment, because it kind of coincides with the average customer visit. I can imagine there are a lot of advertisers that want to speak with the customers at McDonald's - like Coke for example."
Eastwood says the content could involve leveraging off McDonald's sponsorships.
“McDonald's is one of the major sponsors of the Olympics next year, so it makes sense to leverage the sponsorships that they have."
But will it work? According to Eastwood: "To me if you get it right, it is no different to Qantas television - or its in-flight TV, which has proved to be an incredibly valuable asset - both from an entertaining customers point of view and a sales point of view."
However, speaking at a product launch this week, McDonald's COO Catriona Noble was less gung-ho, stressing that the idea was barely at a planning stage, although she acknowledged it had worked in other markets.
McDonald's will not be the first to try out the medium by the time it finally comes to fruition. This week, bookstore chain, Dymocks plasma screens in its George St, Sydney store, showing author interviews and new releases.
Don Grover, chief executive at Dymocks, explains: "We are in a business that educates our customers and now we can bring messages about new releases or information/news about authors instantaneously. We can be much more instantaneous about bringing the marketing messages and information using this platform."
Depending on the results of the trials, the book retailer plans to roll out the screens across its stores in Australia, New Zealand and Hong Kong. "This is truly a product of the phenomena of the development of multi-channel retailing. It is no longer, particularly for a book business, practical to think you can run bricks and mortar stores and do nothing else. Not many stores are executing multi-channel retailing capably, and when they do try to do it they have to make it seamless; the experience has to be the same," Grover says.
Alan Treadgold, managing director at advertising agency Idea Works behind the growing interest in using in-store television is based on influencing the consumer when they are most vulnerable. "Consumers are making their decision on brands and products to purchase in-store, at the point-of-sale. I think a lot of the initiatives have often been driven by getting their messages through to consumers at a point when they are most receptive to decision making on which type of product to buy."
Treadgold says that international trials have uncovered useful insights. "I think that the learnings from the European supermarkets is that just running your TV ads is not the best way to use the medium. When you are in a store with a different mindset you are probably not going to spend 30-seconds looking at a TV ad."
However, he says, McDonald's is different.
“I do think there is a basic distinction between what McDonald's and some of the banks are doing. I think in those environments you know that the customer is going to be queuing for a certain amount of time, so you have them somewhat captive and the messaging is designed at least in part to make you feel like you are not queuing for as long as you are."
For supermarket chains Woolworths Coles little success. However, it seems to be working for retail giants UK-based Tesco and Wal-Mart in the US, with the latter looking to expand further. Eastwood adds part of the issue for Woolworths had been the implementation of the medium. "The problem is when you try and use it as a total sales tool for the company it falls flat. You have to use it as an opportunity to both enhance the customer experience, and then do it in combination with an element of self-promotion. The problem with Woolworths is that, it was all about Woolworths. I mean if it was about recipes for instance and then have it sponsored by one of the products in-store, then customers may feel inspired to watch."
Gawen Rudder, the AFA manager of business services and advice says retailers need to be mindful of the different retail environments. "It can be quite effective. Look at the environment, time slot and target market - they would be the three golden rules," he says.
“The eating social environment is probably conducive to being entertained. Especially if you are alone and it gives customers something to look at."
Paul Korch, executive director at Total Advertising says in-store TV is only set to increase. He adds: "There is no reason why customers who are waiting in McDonald's restaurant wouldn't find it of value, so from that point of view it is just about getting the formula right. I think it does have value to the customer and to the advertiser. It is just about getting that platform right. And that will be done through market testing.
