• by March 12, 2004

Captivate Networks today said that five advertisers have signed agreements to run campaigns via its network of flat-panel TV screens. They are: American Express, Delta, Polaroid, Staples, and Travelocity. AmEx, Delta, and Polaroid represent new deals; Staples and Travelocity are contract renewals. The five deals combined represent an estimated $1 million to $2 million, according to Captivate.

All five advertisers declined to comment. They join a bevy of consumer brands that are finding Captivate's out-of-home advertising vehicle effective in targeting affluent consumers, primarily business professionals with average household incomes of more than $100,000. British Airways, Fidelity Investments, and Volkswagen are among the advertisers that have run campaigns with Captivate. Media buyers and planners say brand advertisers are finding value in Captivate as a compliment to TV, print, and online campaigns.

XM Satellite Radio and the Gladiator GarageWorks division of Whirlpool Corp. are two such marketers. XM is poised to run a campaign on Captivate in April, and Whirlpool's Gladiator--a high-end product targeted to men, the company's first--in the May/June time frame. "It's so simple it's brilliant," says John Moore, senior-VP, group media director, Interpublic Group of Cos.'Mullen Advertising, Wenham, Mass. "You get into the elevator, no one knows where to look--there's nothing in the way, no remote in the hand, no other messages in the way, no multitasking whatsoever," he explains. Moore, who negotiated the XM and Whirlpool deals, says Captivate is ideal for marketers that want to reach upscale consumers, frequently an elusive target.

"We're dealing with a more challenging consumer than ever before. They've got more choice, more control, they're more cynical, and there's greater clutter," Moore says, adding: "Because we have a more challenging consumer, we have to rethink all of our core assumptions."

In addition to running on the Captivate Network, Whirlpool's Gladiator product will also be on display in the lobbies of both the Sears Tower in Chicago and in the Ernst & Young building in Los Angeles. "We live in an emotional and experiential economy, and we want to reach the right audience in an uncluttered environment," Moore says.

"This medium is gaining so much momentum. Is it going to replace television? No. But is it a compliment? Absolutely. And from a cost-per-thousand standpoint, it's more efficient than television, print, or online," Moore maintains. Both XM and Whirlpool are running print, out-of-home, and Internet media in conjunction with Captivate.

The elevator network broadcasts news, stock updates, weather reports, and entertainment highlights that reach 1.4 million people in North America every day, according to a spokesman for the privately held Captivate. Its network, in nearly 400 office buildings, delivers an estimated 30 million impressions per month and notches a 45 percent ad recall, according to Nielsen Media Research data.