Wal-Mart Claims Network Isn't Just Big, But Better Than In-Home TV

Since its inception, Wal-Mart TV--the fledgling place-based TV network operated by the retail giant and partner Premier Retail Networks--has been positioning itself as an alternative to conventional in-home TV buys. Now it's claiming superiority. Armed with new consumer research, Wal-Mart now claims that its in-store TV network is more effective than broadcast and cable TV on the basis of an important marketing goal--the ability to generate sales.

The research, conducted by the TNS Media and Entertainment Group, surveyed 5,630 people in 20 Wal-Mart locations installed with Wal-Mart TV, and found that commercials on the in-store network generated higher motivation levels than in-home television advertisements for comparable brands.

While the study is based on consumer perceptions, and not actual behavior, it represents a new tack for Wal-Mart TV, which previously focused on measuring the size and demographic composition of its audience--as well as brand recall levels--via custom research from Nielsen Media Research.

advertisement

advertisement

Big advertisers such as Unilever, however, wanted to "dig down a little deeper," says Mark Mitchell, executive vice president-ad sales at PRN, which handles ad sales for Wal-Mart TV, founded in 1999. So Wal-Mart and PRN commissioned TNS to conduct a study measuring the current and future purchasing intent of consumers exposed to Wal-Mart TV ads.

The study found that 15 percent said they purchased advertised products "today," while 85 percent said they planned to purchase advertised products "in the future."

"We are a supplement to media plans," concedes Mitchell, who nonetheless sees a rise in the number of major companies utilizing Wal-Mart TV. He claims that advertising renewals among Wal-Mart TV's blue chip advertisers are more than 80 percent.

One possible reason for the higher purchase intent scores, says Mitchell, is that marketers have begun to learn how to utilize the new medium more effectively, adapting customized commercials developed specifically for the "in-store space."

Unilever, for example, runs ads for its Dove brand on the network, and has begun running spots featuring an older Wal-Mart employee who thinks it's beautiful to sport gray hair and wrinkles.

Mitchell says other Wal-Mart TV spots have been modified to target consumers at their "highest motivational level--when they are shopping," zoning ads based on store locations, and even based on the location of individual TV screens within each store.

Next story loading loading..