Wal-Mart Plans 'Endcap TV'

Wal-Mart has announced plans to revamp its in-store TV network with changes that should make it a more integrated, effective marketing tool.The facelift will transform the oft-maligned Wal-Mart TV from a single, store-wide broadcast network to a targeted system (using Internet Protocol technology) that can air different content on each screen. The screens themselves will be placed at eye level in aisles and on endcaps for greater visibility and proximity to advertised products. Aisle screens will air ads from products merchandised within that aisle; endcap screens will be surrounded by the products. (See images at right.)With these changes, Wal-Mart directly addresses the common knocks against the current system: that ceiling-mounted TV monitors hanging well above eye-level along Action Alley aren't conducive to viewing and do little to increase sales of advertised products that typically aren't merchandised anywhere near screens.In a pilot test of the new system conducted in 10 stores and compared to 10 stores with the existing Wal-Mart TV model, sales of advertised products were at least 10% higher, according to media reports."The results of our extensive pilot research proves that targeting relevant programming to strategically important departments moves the needle on both brand awareness and sales while improving the shopper experience," said Mike Hiatt, director of internal media networks at Wal-Mart Stores, according to an article published by Progressive Grocer. "In-store media is becoming mainstream. The Wal-Mart Network is a powerful tool available to marketers," said Stephen Quinn, the chain's senior vice president of marketing, according to Progressive Grocer. (The comments came from Quinn's presentation at the Association of National Advertisers' annual conference.) "Wal-Mart continues to offer the most expansive, most robust, and most effective in-store network in retailing. We are totally committed to making it an even more powerful tool for all of us."The system will be installed in 1,200 stores in 2007 and another 1,200 in 2008. Some new stores -- which opened sans TV screens in anticipation of the changes -- will be among the first to get it. Older stores with the original analog-tube TV monitors will also be a priority, according to a Wal-Mart spokesperson. The goal is to "move all stores to this new platform over the next three years," the spokesperson said. The network reportedly will encompass 100,000 screens.The checkout TV network Wal-Mart began installing in 2005 will continue to roll out, according to the spokesperson. Early media coverage of the announcement immediately began speculating about potential cost increases for product marketers arising from the changes. But even if that proves true, the new system should provide better marketing opportunities within Wal-Mart stores than are available through the existing Wal-Mart TV model. One potential negative side effect for product vendors, however, will be the loss of prime power-wing space to make room for the end-aisle screens. In recent efforts to improve the store environment, Wal-Mart has dramatically reduced the number of pallets, four-ways and other aisle displays deployed along Action Alley and significantly cut back on the use of merchandising strips. Positioning screens at the ends of aisles will further reduce opportunities for secondary display within stores.Wal-Mart unveiled its plans at the Wal-Mart Network Summit is has been hosting annually for product vendors. The network is operated by PRN (Premier Retail Networks), San Francisco, which is already pitching the changes at walmarttvnetwork.com.

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