The longtime expert in ambient background music plans to become a powerhouse in national in-store promotions by cross-selling current clients a menu of new ad and promotion services, including the ZTV in-store network.
This year, Muzak IMG convinced Tandy Corp.'s Radio Shack to carry ZTV in 5,000 outlets nationwide. J.C. Penney Co., Macy's, Gadzooks and 100 other retailers are currently carrying the service in another 10,000 stores.
REACHING 45 MIL
Muzak IMG claims to reach 45 million consumers monthly through in-store TV advertising in 15,000 stores, and next year plans to extend its reach to more than 20,000 stores nationwide.
"It's a new form of environmental advertising as an extension of Muzak's entertainment at thousands of businesses for many years," said Muzak IMG President J. Gary Henderson.
ZTV's customized programming consists of celebrity interviews, comedy programs, sports bloopers and music videos, interspersed with information about products sold at each store, as well as brands not sold there.
Retailers pay a nominal fee to receive the programming; Muzak IMG derives revenue from brand ads it sells on the programming to retailer-approved sponsors including American Express Co., Columbia Pictures, Nike, and Columbia House.
"The thing retailers like best about [ZTV] is their ability to make immediate changes in promotions, which frees them from long-term planning and puts them in control," Mr. Henderson said.
Radio Shack has used in-store videos before, especially to describe new products or holiday gift ideas, but ZTV is its first sustained promotional programming.
"Customers told us they wanted more information about products, and they like the format," said David Edmonson, Radio Shack senior VP-marketing and