Money Where Its Mouth Is

POPAI has joined with the Advertising Research Foundation on a national study aimed at making P-O-P a measured advertising medium like print and broadcast.

The multi-channel study will measure the amount of in-store advertising, the estimated number of consumer impressions created by them, and the resultant effectiveness of P-O-P in increasing sales. A pilot phase being funded by agency TLP, Inc., Dallas, will measure P-O-P effectiveness in two major categories in supermarket and mass merch outlets.

The study was expected to be in the field this month, with results available by the end of 1999. Future plans call for a perfected methodology that will be applied to numerous product categories in each major class of retail trade in four-year cycles.

The research “will provide an unprecedented level of accountability for P-O-P advertising,” says ARF president Jim Spaeth. POPAI president Dick Blatt says the initiative “will ultimately revolutionize the way in which P-O-P is planned and bought and, thus, the way in which clients allocate their media dollars.”

Frittered Away Consumers enjoy savings of more than $3 billion annually by redeeming five billion-plus coupons. But manufacturers lose $400 million a year through coupons that are redeemed incorrectly, and another $250 million each year through coupon fraud, according to the findings of Aurora, CO-based In Store Media Systems, Inc.

More than 137,000 grocery stores in the U.S. currently accept coupons, and some outlets process more than 1,000 coupons each day. But clerks often commit costly errors that range from accepting expired coupons to processing ones that don’t match up with the item.

Making matters worse are the criminals who “easily pass coupons” through stores they either own or have paid off, In Store officials say. “Every Sunday paper filled with coupons is payday for these criminals,” says the company in a recent release.

Complications involving clearing coupons are another source of trouble. Under current procedures, coupons collected at stores are shipped to be manually sorted and counted by retail coupon clearinghouses, which process billions of pieces of paper. The coupons must be counted twice, and shipped back and forth to clearinghouses located mainly in Mexico.

In Store suggests electronically processed coupons will eliminate much of the fraud.

Taking the High Road San Francisco-based Netcentives Inc., a developer of online loyalty programs, has picked Highway One as agency of record. A unit of D’Arcy Masius Benton & Bowles Communications, New York City, Highway One replaces the San Francisco office of Blau Direct.

San Fran-based Highway One’s initial assignment will be to use promotional and advertising initiatives to refine and grow ClickRewards, a loyalty program that rewards consumers with frequent flyer miles for shopping at premier Web sites.

“Highway One has consistently impressed us with its strong breadth of skills, tremendous consumer insights, and creative ideas, along with its thorough understanding of the direct and loyalty marketing businesses,” says West Shell III, Netcentives ceo.

Free Delivery for Brandon Domino’s Pizza, Ann Arbor, MI, has tapped David Brandon, former head of Valassis Communications, as chairman and ceo to replace founder Thomas Monaghan.

Monaghan announced plans last year to leave and sell a 93 percent share of the pizza delivery chain to Bain Capital, Inc., a private investment company. He will remain chairman emeritus and a director on the board.

“David has tremendous mass marketing and sales expertise serving clients in the packaged food and foodservice sector,” said Bain Capital co-managing director Mark Nunnelly of the appointment.

Brandon resigned as ceo of Livonia, MI-based Valassis last June, but remained chairman through the end of 1998. He first joined the coupon giant in 1979 on the sales and marketing side, nine years after George Valassis founded the firm. Alan Schultz, a 14-year company veteran who was previously chief operations officer, took over as ceo and chairman.

Valassis posted $741 million in sales in calendar year 1998. Domino’s sales exceed $3 billion.

The promotion-minded Domino’s in March joined with San Mateo, CA, software maker Electronic Arts on a program to raise $1 million for Easter Seals. The four-month program offers a free CD sampler (with S&H costs) of EA’s SimCity 3000 and $10 off purchase of the game to consumers who donate $5 to the charity. The pitch is made on pizza boxes.