Mr. Wolinsky heads the latest foray into in-store TV, Automated
Media Services, set to launch a test of its 3GTV network in nine
Bloom stores around Washington, D.C., later this month. But, he
acknowledges, "the taint is so devastating that it makes it very
difficult to engage someone in an open conversation" about in-store
TV.
He believes he's solved problems that dogged prior in-store TV
ventures. His solutions include a yet-to-be-revealed content
approach he likens to "short attention-span theater," cheaper
technology for wiring stores and systems that ensure ads actually
get delivered to screens and monitor shopper flow through the
store.
But "the taint" has caught up to bigger and better-funded
players than Mr. Wolinsky. While most in the industry blame poor
execution, some are questioning the concept.
The biggest and most recent bold plan came two years ago, when
behemoth Walmart joined its longtime in-store TV partner PRN,
analytics firm DS-IQ and media shop Starcom Mediavest Group to
launch the Walmart Smart Network.
The new network addressed prior shortcomings with Walmart TV by
building screens directly into end-cap displays, customizing
messages by store and section, measuring response and refining
messages based on sales.
Walmart expected to deploy the upgraded network in all its
stores by early this year. That didn't happen, and it's not yet
clear when it will.
A spokeswoman for Walmart said in a statement the network is in
1,200 stores (well under the 2,700 targeted two years ago) and
continues to be installed in new stores. She added the retailer is
"encouraged by increasing advertiser interest." Walmart realizes
in-store messages need to be shorter and focused on finding new
products and is focusing on such innovations as weather-triggered
campaigns, mobile integrations and Spanish-language ads, she said,
adding: "We are seeing well-designed and thoughtful campaigns
successfully drive and lift impressions."
Late last year, the parent company of PRN, primary operator of
the Walmart Smart Network and Walmart's older in-store TV network
among those at several other retailers, filed for bankruptcy.
Though PRN wasn't apparently the cause, Paris-based Technicolor has
been trying unsuccessfully to sell the unit as part of its
restructuring plan, including after emerging from bankruptcy
earlier this year.
But PRN CEO Richard Fisher said his business has posted a profit
consistently for 10 years, including the first half of this year.
He said only Walmart can say why the Smart Network has rolled out
slower than planned, but noted that many new ventures have been
slowed by the recession, which intensified just as the Smart
Network was launching. He blamed delays in selling PRN on
Technicolor's determination to get fair value.
Mr. Fisher acknowledged in-store TV's image problem, but has a
different take on "the taint." The perception of failure has been
fueled, he said, by startups -- he counts about a dozen -- who
burned through venture capital and investor patience long before
they reach the scale to be meaningful to national advertisers.
That's not PRN's problem, Mr. Fisher said. With 206 million
monthly consumers reached, per Nielsen data, it's bigger than the
next nine in-store video players combined, he said.
Another problem is the very term "in-store TV," Mr. Fisher said.
Though PRN has used it in the past, he prefers "retail media," a
reflection that it's not about conventional TV commercials in store
and can incorporate other types of digital communication.
Peter Hoyt, exec director of the In-Store Marketing Institute
trade group, pegs in-store TV's failure on two reasons.
First, wiring any retailer for TV is expensive, he said, and the
investment costs are likely to be too steep to be recouped by
advertising sales.
Second, he said, "Nobody's really cracked the code on the
content. Nobody ever went to a store to watch a commercial, so if
you're looking to put a 15- or 30-second spot on your in-store TV,
it will fail."
PRN and others have run ads ranging from two to eight seconds
for in-store TV, but they're not without creative challenges. The
obstacles that make 15-second ads difficult get bigger still when
cutting the time down even more.
At best, marketers can convey a quick offer with the time they
have on TV in store, said a longtime shopper-marketing-agency
executive, and such messages can be conveyed cheaper through
circulars or shelf ads.
Could it just be that TV in stores, good as it always sounded,
is a bad idea? Mr. Hoyt finds it "very telling" that News Corp.
Chairman-CEO Rupert Murdoch, who knows plenty about TV and owns the
largest U.S. in-store media network -- NewsAmerica Marketing -- has
never pushed in-store TV.
He does, however, see in-store TV working under the right
circumstances -- look at Checkout TV (another PRN product) and Gas
Station TV at pumps. Both rely on longer-form ads and temporarily
captive audiences, though they work much more like in-home TV and
aren't positioned to drive many impulse sales, he said.
Mr. Wolinsky is banking on better execution to make the
difference.
Beyond TV, in-store digital applications are growing in number
and apparently impact.
Carmen Bauza, Walmart's VP-divisional merchandise manager of
beauty, spoke glowingly last week at the HBA Global Expo in New
York about EZFace, a digital kiosk now used in about 50 Walmart
stores that photographs a woman's face then shows simulations of it
with various cosmetics shades. Stop & Shop has had success with
Modiv hand-held units that interface with loyalty-card data to
generate offers and streamline checkout by letting customers scan
their own purchases in the aisles. And a person familiar with the
matter says Modiv is preparing to launch an iPhone app that can do
the same thing.
Meanwhile, Mr. Hoyt contends the bulk of shopper marketing tech
development today is screens on shoppers' own mobile devices, not
in-store TV.
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CORRECTION: An earlier
version of the story incorrectly referred to Automated Media
Services as Automated Media.