In-Store Reach: NBCU Joins With PRN To Sell Ads

NBC Universal has reached an agreement with Premier Retail Networks allowing it to sell ads to select marketers on PRN's in-store network, which is available at supermarket checkout counters. The agreement gives NBCU the opportunity to sell package deals bundling time on its outlets with space on PRN's "Supermarket Checkout TV."

PRN's "Supermarket Checkout TV" is in more than 1,000 stores, including chains Albertsons and Shop Rite. Both chains have a heavy footprint in markets covered by NBCU's O&Os--Albertsons on the West Coast and Shop Rite in the East. Jay Ireland, the recently departed head of NBCU Television Stations (now with parent GE), spoke about the PRN deal to investors last month. He said it would yield some 45 million impressions a year.

Details of the deal, or "strategic alliance" with PRN are expected to be unveiled this week, including the ad specifics.

An NBCU rep declined comment, as did a rep with PRN.

Some ads on the in-store PRN network include spots with an accompanying billboard on the screen's side.

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For some time, NBCU has provided programming to PRN and bought space on its networks, which include channels in Wal-Mart and Costco.

Separately, Ireland said NBCU will begin to sell time on video screens being placed on PATH trains, which run between New York and New Jersey. A PATH deal would give NBC access to some 230,000 riders each day; many are upscale consumers traveling between New Jersey and New York's Financial District.

A representative for the Port Authority, which operates the PATH trains, said a deal with NBCU has yet to be signed, although the agency is looking for a partner. Video screens--two per car--will be installed in the new generation of PATH trains. They will begin in test mode in 2008; the entire fleet will be replaced by 2011.

In addition, NBCU has expanded its programming and sales efforts to screens in Chicago taxis. (So far, it has screens in 475 New York taxis.) In the Windy City, its programming is running as part of a test with Clear Channel Taxi Media in about 55 cabs. Revenues are split between NBCU and Clear Channel.

A year ago, NBCU announced a deal with VST Media Network to offer local O&O programming at gas pumps, billed as NBCU's "first major venture into the growing out-of-home digital market." Ireland said that deal now covers 500 pumps in four O&O markets--Los Angeles, Chicago, San Francisco and San Diego--and the reach is expanding.

NBCU said that deal includes content in three-minute loops updated twice daily. Programs come from local newscasts from the NBC O&Os, where the respective pumps are located. The programming and ad content is distributed from a central location: NBC's San Francisco station, KNTV.

"Supermarket Checkout TV" apparently reaches people for longer periods than VST's gas TV. NBCU says people spend an average of three minutes filling their gas tanks; PRN says supermarket shoppers spend an average of six and a half minutes in line before paying.

Ireland said NBC's O&O group, now led by John Wallace, wants to expand beyond traditional on-air spots to diversify revenue streams. He said out-of-home provides a "huge" opportunity.

In general, he added, NBCU "want(s) to transform the television experience into more of a local experience across a multitude of platforms that everyone can access every day."

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