Borders has begun entertaining customers in stores with cooking demonstrations and a book club series, all on Borders TV.

Borders is not the only retailer discovering what behemoths like Wal-Mart already know: In-store TV is a smart way to talk to customers.

The networks feature everything from new products and weekly specials to nutritional information, recipes and promotions. The spots typically range from 15 to 30 seconds, however longer forms can last a few minutes.

About 630,000 TV screens are now housed in 97,000 U.S. retail stores, estimates PowerPact, a consumer marketing agency. That number is projected to grow by 20% a year.

“Marketers right now are really experimenting,” says Scott Page, president and CMO for PowerPact. “It’s all over the board. A lot of things are being tried to see what will work.”

Wal-Mart alone accounts for 120,000 screens. Ads are targeted by department via five channels and viewed by about 21 million people every month, says Premier Retail Networks, the operator of the network.

Spending on in-store TV was expected to hit about $262.5 million last year, up 25.3% from 2006, estimates PQ Media, which projects double-digit growth through 2011.

Next month, fashion merchant Limited Too is also launching a network to promote new music and DVD releases, gift cards and in-store specials at about 400 stores with Retail Entertainment Design.

“It brings marketing messages to life,” says Scott Bracale, president of Tween Brands Agency, the chain’s parent company.

The firm plans to offset the “multimillion-dollar” expense by selling paid ads, Bracale says. Potential advertisers include Procter & Gamble’s Secret Sparkle and Walt Disney Records.

Some companies are even incorporating user-generated content.

Ecko Unltd teamed up with Channel M to launch “ecko TV” last October. It uses short-form content — everything from sports and shout-outs from celebrities — to “stop people in their tracks,” says Eric Hebel, president and COO of Channel M.

People can submit their own videos to be featured in upcoming episodes. The company also scours sites like YouTube for content. The monthly series airs in 700 Ecko Unltd. shops and Macy’s stores.

“Sight, sound and motion in-store is the Holy Grail,” says Virginia Cargill, president of CBS Outernet, a media firm that runs network TVs in more than 1,400 grocery stores.

TUNING OUT

Critics say in-store TV is advertising overload.

Watchdog group The Campaign for Commercial Free Childhood says it’s just another push to put children in front of ads.

“It is an intrusion,” says Susan Linn, the group’s co-founder. “This is part of a targeted device by corporations to get brands in our face 24 hours, seven days a week. It may benefit marketers, but it doesn’t do the rest of us a lot of good.”

But Borders’s senior vice president and CMO Michael Tam argues that it has a purpose.

“It’s giving customers something that they would otherwise not see on TV,” he says. “Our customers love this stuff.”

Dannon ran a second flight of 15-second spots last year for its Activia yogurt after an initial flight drew double-digit increases, reports Catapult Marketing, the agency that handled the content. The ads appeared on screens in Costco electronics departments with a call to action.

And last summer, Pepsi ran a spot on CBS Outernet’s network in Albertsons stores, driving shoppers to displays where they could enter to win tickets to the World Series.

Watch for more interactivity such as instructions on how to download coupons to cell phones.

PAY TO PLAY

A 30-second spot running for a month on CBS Outernet costs about $140,000 for media time only.

As for the hardware, some retailers bear the brunt for non-ad-supported networks. In other cases, network providers pick up the cost or split it with the company.

A Nielsen Media Research study found that 68% of people said in-store messages would influence their purchase decision. What’s more, 44% said they would switch an item they planned to buy for one advertised on a store screen.

Unlike home, “you can’t turn it off,” notes Leo Kivijarv, vice president of PQ Media.

“It’s not about adding screens or adding advertisers,” says Mike Quinn, senior vice president of marketing for Premier Retail Networks, “It’s about creating a more engaging experience for the shopper.”

Promotion agencies had primarily dominated the in-store environment. But now, advertising agencies and network providers have joined in.

“There is potential where we will fight for the same dollars, but we’re smart enough when we have the same clients to work collaboratively,” adds Peter Cloutier, Catapult East president. “I don’t think there will be any one model for clients.”

While most clients measure sales lift to track ROI, the medium lacks other metrics to gauge success, which causes some to shy away.

Nielsen’s new PRISM (Pioneering Research for an In-Store Metric) system may be able to help. The company has been testing the system, which combines shopper traffic numbers with in-store media and sales data to track how many people were exposed to a display and the quantity that bought the product.

“Unless it is rewarding in the end, then it is just one more message,” sums up Wendy Liebmann, president of marketing consulting firm WSL Strategic Retail.

NEW AT RETAIL

1. Tuffline TV: a combination of digital signage and TV. Displays use a flash card to run commercials and other video. A removable skin on the outside of the display can change a message in seconds. — Inventive Media.

2. Peel ‘n Taste: Shoppers taste products via thin strips. Dispensers containing 500 taste packets can be affixed to shelves or displays. — First Flavor.

3. Scent Packs: Shoppers squeeze hollow packets that release a fragrance. The pack is good for about 500,000 squeezes. — Intelli-Scents.

4. Fresh Ideas: Kiosks let shoppers print product information, wellness content and recipes. — Healthnotes.

5. HSS Speakers: Displays feature targeted sound functions to keep audio messages subdued to reach one shopper at a time. — Audiobrain.
   — Amy Johannes

For more articles on retail marketing go to www.promomagazine.com/retail

Broadcast networks broke new ground at this year’s upfront, revealing year-round, fluctuating schedules and continued involvement in reality-based programming as they attempt to capture media buyers’ dollars.

Compared to this year’s growing cable upfront, advertisers are not reaching into their pockets as readily for broadcast ad buy. The “big six” broadcast networks are up against other sources of entertainment, including the Internet, video games and DVDs.

“Upfront marketing is terribly expensive — people are spending more money for the same number of eyeballs,” says Sunny Garga, president and CEO of Wilton, CT-based Marketing Management Analytics, a company that helps brands assess ROI from ad spending. “This is a very frustrating time for media buyers as rates continue to go up and they are making their media buy work harder to maintain the same level of effectiveness.”

Last year, the upfront took in $9.3 billion across all six networks and that number is expected to grow by 5% in 2004. According to Garga, “Marketers are sourcing money from other media, namely print and radio, and putting it into TV and online spending.” However, broadcast TV spots are no longer the end-all-be-all for skeptical marketers, who are seeking other ways to reach target audiences. This often means seeking promotions beyond the traditional 30-second TV spot, which is increasing in price by 15% to 20% this year.

While the 30-second spot is far from dead, media buyers are also looking to incorporate more promotions into their marketing mix. Though TV spots do reach consumers broadly, clients can more effectively measure return on their investment through promotions that may provide, for example, the number of Web site hits, consumer registration to sweepstakes and rebate redemption.

“Buyers are definitely looking to do more promotional overlays — with the increase in the prices and because the clients are now requiring that the buyers really have their media dollars be more accountable,” says Patti Regan, president and CEO of Los Angeles-based The Regan Group. “Clients are looking for a more tangible return on investment.”

Triple threat

The three top nets coming out of the May sweeps are CBS, NBC and Fox. This year, both Fox and NBC are trying their hand at year-round program schedules, while CBS prefers to stick with its traditional programming recipe.

“NBC’s schedule is a little bit self-serving because it’s year-round scheduling, starting after they have the Olympics. Fox has a different issue because of baseball,” says Leslie Moonves, chairman and CEO of CBS. “All I know is that we are up in every single category over the last five years playing the game the way we’ve played it. So I guess when you’re failing, you want to change the rules; when you are succeeding, you don’t.”

NBC and Fox beg to differ as they roll out their new scheduling tactics. Fox plans to schedule fresh shows all 52 weeks of the year and essentially have three mini-seasons. Its schedule will also be in constant flux because of both baseball and shifting reality programming, such as its hit American Idol. NBC’s plan is not quite as drastic, though the net is currently rolling out new shows this summer rather than embargoing them for fall premieres.

“We’re going to be seeding in comedy throughout the year — starting possibly in the fourth quarter and definitely in the spring and summer as well,” says Jeff Zucker, president of NBC Universal television group.

Going into this fall, NBC and Fox are both strong on reality programming and CBS is also banking on the success of new installments of its reality groundbreaker Survivor. Currently, NBC and CBS are neck and neck as they vie to be No. 1 in ratings among all broadcast networks. In May, following sweeps, NBC won the 18-49 demo, its fourth straight season win for this sector. CBS won the 2003-2004 season in viewers averaging 13.1 million — the largest margin of victory for any network in over 14 years, by more than 2 million viewers over NBC, 3 million over Fox and 4 million over ABC.

“The smart networks sell different shows at different levels,” Moonves says. “Twenty-five to 54 is more important to us than 18-49; there are also a number of shows that we do sell on total viewers. Viewers are extremely important and among a number of advertisers that still matters.”

After losing its two mega-comedies, Friends and Frasier, NBC will add five new series in the fall, including a Friends spin-off. The network also picked up seven additional series that will debut some time next season as part of their new year-round schedule. CBS will add five new series, with its standout expected to be its third incarnation of CSI, this time set in New York City.

Already dividing its offerings into three periods, Fox’s new season began in early June with the launch of two new comedies and two new dramas. Reality will play a large part in the network’s fall offerings, with The Billionaire: Branson’s Quest for the Best leading the way.

Bottoming out

The low end of the totem pole is comprised of ABC, The WB and UPN. Turning away from comedy, ABC is focusing more on dramas and reality programming for this fall introducing eight new series: four scripted dramas, two sitcoms and two reality shows. The network has fallen to fourth place among viewers aged 18-49, those most highly valued by advertisers, perhaps because the network lacks a mega-hit. Viewership also fell 9% this season. ABC will attempt to rebuild its Tuesday and Friday comedy blocks to attract both more viewers and more advertisers.

The WB, having fallen 11% overall in viewership, is also struggling at this year’s upfront, possibly because it is the last network to embrace reality programming. The net, a perennial teen favorite, will reinforce that position and debut two new hour-long dramas, three new comedies and add a reality show to its fall lineup for the first time this fall.

The WB recently signed a marketing agreement in which stars of its hit series will don Kmart clothing on air for cross-promotional purposes. The campaign, handled by Kmart’s AOR Grey Worldwide, is expected to begin this month and last through September. It includes a mix of television, print, newspaper, online, outdoor, contests, spot radio buys and in-store promotions featuring WB talent.

“We view product placement as you would an event marketing sponsorship — without proper activation and advertising, the sponsorship is flat and you don’t have enough control over it,” says Chuck Corcoran, director of entertainment for Atlanta-based GEM Group. “The key is for companies to view it as one part of the marketing mix.”

Regan agrees, “Today and more so in the future it is critical that the integration is not only a demographic fit but also a brand personality match. Consumers are savvy, especially in the youth market where they’re astute and more cynical — it can’t be a forced fit.”

Though at the bottom of the lineup, UPN has been attracting buzz and managed to surpass The WB in viewership. This season’s schedule is designed to sustain the network’s momentum among young adult and African-American viewers, establish signature nights and stars and deliver audience growth throughout the week. New additions include one comedy and two dramas.

Ones to watch

The networks debut their new programming at the upfronts, however most new installments fail to make the cut. According to Jim Chabin, president and CEO of industry association Promax & BDA, “Programming will have to find a way to evolve into the business model or it will go away. My sense is the money will continue to flow wherever new viewers are spreading.” Here is a sampling of what’s to come this summer and fall, one can only speculate as to where viewers will go:

SUNDAY

9-10 p.m. Desperate Housewives (ABC)
Move over Stepford Wives – Mary Alice Scott is moving in. Mary lives in a perfect house in the perfect suburb, or used to, she’s since deceased and can see more now than she ever did alive.

9-10 p.m. Jack & Bobby (WB)
The WB debuts its new drama, a snapshot of a young man being molded to beat the odds and become this mid-century’s greatest presidential leader.

9-10 p.m. The Partner (Fox)
Known for its zany take on reality, Fox is pitting its new series up against the other network’s dramas. The show will be similar to NBC’s The Apprentice, in which a group of recent law school grads compete for a position as a partner in a major law firm.

MONDAY

8-9 p.m. The Benefactor (ABC)
Billing its new reality series as an “alternative series,” ABC has created a show around billionaire businessman and Dallas Mavericks owner Mark Cuba as he prepares to give away a million bucks to one of 16 contestants.

8-9 p.m. North Shore (Fox)
Playing off the overnight success of its prime-time soap The OC, Fox introduces a new cast of beautiful characters on beautiful beaches — this time the staff at a Hawaiian hotel.

10-11 p.m. LAX (NBC)
NBC brings back television favorites Heather Locklear and Blair Underwood as intense rivals in this dramatic series centered in a world unto itself: a major international airport.

TUESDAY

9:30-10 p.m. Rodney (ABC)
Stand-up comedian Rodney Carrington takes viewers into the middle of real, everyday America. This comedy features a down-to-earth guy who keeps quitting or getting fired from jobs while doing stand-up in dive bars at night.

9-10 p.m. Clubhouse (CBS)
This new drama stars a 16-year-old boy who becomes a man in a world of overgrown boys when he takes a job as a batboy for a professional baseball team.

9-10 p.m. The Jury (Fox)
Fox’s new legal drama focuses on the perspective of a different New York jury every week, starting with the deliberation process and unfolding each case via flashbacks.

WEDNESDAY

10-11 p.m. CSI: NY (CBS)
Building upon the success of the CSI franchise, CBS is launching another installment — this time focusing on forensic investigators who use high-tech science to follow the evidence and solve crimes in The Big Apple.

9-10 p.m. Revelations (NBC)
As religious fervor sweeps the nation with The Passion of the Christ, NBC has worked up this new limited-run drama series in which a scientist is faced with challenges as he investigates the coming apocalypse.

9-10 p.m. Kevin Hill (UPN)
Taye Diggs stars as a 28-year-old, hotshot lawyer in New York City, left to raise the six-month-old daughter of his cousin, who unexpectedly passed away.

THURSDAY

9-10 p.m. Life As We Know It (ABC)
This coming of age drama is about three hormone-charged teenage boys who are trying to do something even harder than losing their virginity — and that’s to grow up without totally freaking out.

8-8:30 p.m. Joey (NBC)
This Friends spin-off follows the aspiring actor to Los Angeles, where he chases his dream, reunites with his sister and moves in with his 20-year-old nephew.

8-9 p.m. The Mountain (WB)
Oliver Hudson (yes, Goldie’s son and Kate’s brother) plays a free spirit who finds himself fighting to protect the family business from a rival developer in this ski resort drama.

FRIDAY

8:30-9 p.m. Savages (ABC)
Tucked into ABC’s TGIF comedy line-up, this series from exec producer Mel Gibson centers on a single dad raising a brood of boys.

10-11 p.m. dr vegas (CBS)
Emmy-nominee Rob Lowe plays a physician who takes a gamble when he becomes the in-house doctor at a Sin City casino.

8-9 p.m. The Next Great Champ (Fox)
Showing striking similarity to NBC’s The Contender, this reality series features six-time world champion Oscar De La Hoya as he mentors boxers to become prizefighters.

NOTE The nets have put no programming innovation into Saturday night.

Broadcast networks broke new ground at this year’s upfront, revealing year-round, fluctuating schedules and continued involvement in reality-based programming as they attempt to capture media buyers’ dollars.

Compared to this year’s growing cable upfront, advertisers are not reaching into their pockets as readily for broadcast ad buy. The “big six” broadcast networks are up against other sources of entertainment, including the Internet, video games and DVDs.

“Upfront marketing is terribly expensive — people are spending more money for the same number of eyeballs,” says Sunny Garga, president and CEO of Wilton, CT-based Marketing Management Analytics, a company that helps brands assess ROI from ad spending. “This is a very frustrating time for media buyers as rates continue to go up and they are making their media buy work harder to maintain the same level of effectiveness.”

Last year, the upfront took in $9.3 billion across all six networks and that number is expected to grow by 5% in 2004. According to Garga, “Marketers are sourcing money from other media, namely print and radio, and putting it into TV and online spending.” However, broadcast TV spots are no longer the end-all-be-all for skeptical marketers, who are seeking other ways to reach target audiences. This often means seeking promotions beyond the traditional 30-second TV spot, which is increasing in price by 15% to 20% this year.

While the 30-second spot is far from dead, media buyers are also looking to incorporate more promotions into their marketing mix. Though TV spots do reach consumers broadly, clients can more effectively measure return on their investment through promotions that may provide, for example, the number of Web site hits, consumer registration to sweepstakes and rebate redemption.

“Buyers are definitely looking to do more promotional overlays — with the increase in the prices and because the clients are now requiring that the buyers really have their media dollars be more accountable,” says Patti Regan, president and CEO of Los Angeles-based The Regan Group. “Clients are looking for a more tangible return on investment.”

Triple threat

The three top nets coming out of the May sweeps are CBS, NBC and Fox. This year, both Fox and NBC are trying their hand at year-round program schedules, while CBS prefers to stick with its traditional programming recipe.

“NBC’s schedule is a little bit self-serving because it’s year-round scheduling, starting after they have the Olympics. Fox has a different issue because of baseball,” says Leslie Moonves, chairman and CEO of CBS. “All I know is that we are up in every single category over the last five years playing the game the way we’ve played it. So I guess when you’re failing, you want to change the rules; when you are succeeding, you don’t.”

NBC and Fox beg to differ as they roll out their new scheduling tactics. Fox plans to schedule fresh shows all 52 weeks of the year and essentially have three mini-seasons. Its schedule will also be in constant flux because of both baseball and shifting reality programming, such as its hit American Idol. NBC’s plan is not quite as drastic, though the net is currently rolling out new shows this summer rather than embargoing them for fall premieres.

“We’re going to be seeding in comedy throughout the year — starting possibly in the fourth quarter and definitely in the spring and summer as well,” says Jeff Zucker, president of NBC Universal television group.

Going into this fall, NBC and Fox are both strong on reality programming and CBS is also banking on the success of new installments of its reality groundbreaker Survivor. Currently, NBC and CBS are neck and neck as they vie to be No. 1 in ratings among all broadcast networks. In May, following sweeps, NBC won the 18-49 demo, its fourth straight season win for this sector. CBS won the 2003-2004 season in viewers averaging 13.1 million — the largest margin of victory for any network in over 14 years, by more than 2 million viewers over NBC, 3 million over Fox and 4 million over ABC.

“The smart networks sell different shows at different levels,” Moonves says. “Twenty-five to 54 is more important to us than 18-49; there are also a number of shows that we do sell on total viewers. Viewers are extremely important and among a number of advertisers that still matters.”

After losing its two mega-comedies, Friends and Frasier, NBC will add five new series in the fall, including a Friends spin-off. The network also picked up seven additional series that will debut some time next season as part of their new year-round schedule. CBS will add five new series, with its standout expected to be its third incarnation of CSI, this time set in New York City.

Already dividing its offerings into three periods, Fox’s new season began in early June with the launch of two new comedies and two new dramas. Reality will play a large part in the network’s fall offerings, with The Billionaire: Branson’s Quest for the Best leading the way.

Bottoming out

The low end of the totem pole is comprised of ABC, The WB and UPN. Turning away from comedy, ABC is focusing more on dramas and reality programming for this fall introducing eight new series: four scripted dramas, two sitcoms and two reality shows. The network has fallen to fourth place among viewers aged 18-49, those most highly valued by advertisers, perhaps because the network lacks a mega-hit. Viewership also fell 9% this season. ABC will attempt to rebuild its Tuesday and Friday comedy blocks to attract both more viewers and more advertisers.

The WB, having fallen 11% overall in viewership, is also struggling at this year’s upfront, possibly because it is the last network to embrace reality programming. The net, a perennial teen favorite, will reinforce that position and debut two new hour-long dramas, three new comedies and add a reality show to its fall lineup for the first time this fall.

The WB recently signed a marketing agreement in which stars of its hit series will don Kmart clothing on air for cross-promotional purposes. The campaign, handled by Kmart’s AOR Grey Worldwide, is expected to begin this month and last through September. It includes a mix of television, print, newspaper, online, outdoor, contests, spot radio buys and in-store promotions featuring WB talent.

“We view product placement as you would an event marketing sponsorship — without proper activation and advertising, the sponsorship is flat and you don’t have enough control over it,” says Chuck Corcoran, director of entertainment for Atlanta-based GEM Group. “The key is for companies to view it as one part of the marketing mix.”

Regan agrees, “Today and more so in the future it is critical that the integration is not only a demographic fit but also a brand personality match. Consumers are savvy, especially in the youth market where they’re astute and more cynical — it can’t be a forced fit.”

Though at the bottom of the lineup, UPN has been attracting buzz and managed to surpass The WB in viewership. This season’s schedule is designed to sustain the network’s momentum among young adult and African-American viewers, establish signature nights and stars and deliver audience growth throughout the week. New additions include one comedy and two dramas.

Ones to watch

The networks debut their new programming at the upfronts, however most new installments fail to make the cut. According to Jim Chabin, president and CEO of industry association Promax & BDA, “Programming will have to find a way to evolve into the business model or it will go away. My sense is the money will continue to flow wherever new viewers are spreading.” Here is a sampling of what’s to come this summer and fall, one can only speculate as to where viewers will go:

SUNDAY

9-10 p.m. Desperate Housewives (ABC)
Move over Stepford Wives – Mary Alice Scott is moving in. Mary lives in a perfect house in the perfect suburb, or used to, she’s since deceased and can see more now than she ever did alive.

9-10 p.m. Jack & Bobby (WB)
The WB debuts its new drama, a snapshot of a young man being molded to beat the odds and become this mid-century’s greatest presidential leader.

9-10 p.m. The Partner (Fox)
Known for its zany take on reality, Fox is pitting its new series up against the other network’s dramas. The show will be similar to NBC’s The Apprentice, in which a group of recent law school grads compete for a position as a partner in a major law firm.

MONDAY

8-9 p.m. The Benefactor (ABC)
Billing its new reality series as an “alternative series,” ABC has created a show around billionaire businessman and Dallas Mavericks owner Mark Cuba as he prepares to give away a million bucks to one of 16 contestants.

8-9 p.m. North Shore (Fox)
Playing off the overnight success of its prime-time soap The OC, Fox introduces a new cast of beautiful characters on beautiful beaches — this time the staff at a Hawaiian hotel.

10-11 p.m. LAX (NBC)
NBC brings back television favorites Heather Locklear and Blair Underwood as intense rivals in this dramatic series centered in a world unto itself: a major international airport.

TUESDAY

9:30-10 p.m. Rodney (ABC)
Stand-up comedian Rodney Carrington takes viewers into the middle of real, everyday America. This comedy features a down-to-earth guy who keeps quitting or getting fired from jobs while doing stand-up in dive bars at night.

9-10 p.m. Clubhouse (CBS)
This new drama stars a 16-year-old boy who becomes a man in a world of overgrown boys when he takes a job as a batboy for a professional baseball team.

9-10 p.m. The Jury (Fox)
Fox’s new legal drama focuses on the perspective of a different New York jury every week, starting with the deliberation process and unfolding each case via flashbacks.

WEDNESDAY

10-11 p.m. CSI: NY (CBS)
Building upon the success of the CSI franchise, CBS is launching another installment — this time focusing on forensic investigators who use high-tech science to follow the evidence and solve crimes in The Big Apple.

9-10 p.m. Revelations (NBC)
As religious fervor sweeps the nation with The Passion of the Christ, NBC has worked up this new limited-run drama series in which a scientist is faced with challenges as he investigates the coming apocalypse.

9-10 p.m. Kevin Hill (UPN)
Taye Diggs stars as a 28-year-old, hotshot lawyer in New York City, left to raise the six-month-old daughter of his cousin, who unexpectedly passed away.

THURSDAY

9-10 p.m. Life As We Know It (ABC)
This coming of age drama is about three hormone-charged teenage boys who are trying to do something even harder than losing their virginity — and that’s to grow up without totally freaking out.

8-8:30 p.m. Joey (NBC)
This Friends spin-off follows the aspiring actor to Los Angeles, where he chases his dream, reunites with his sister and moves in with his 20-year-old nephew.

8-9 p.m. The Mountain (WB)
Oliver Hudson (yes, Goldie’s son and Kate’s brother) plays a free spirit who finds himself fighting to protect the family business from a rival developer in this ski resort drama.

FRIDAY

8:30-9 p.m. Savages (ABC)
Tucked into ABC’s TGIF comedy line-up, this series from exec producer Mel Gibson centers on a single dad raising a brood of boys.

10-11 p.m. dr vegas (CBS)
Emmy-nominee Rob Lowe plays a physician who takes a gamble when he becomes the in-house doctor at a Sin City casino.

8-9 p.m. The Next Great Champ (Fox)
Showing striking similarity to NBC’s The Contender, this reality series features six-time world champion Oscar De La Hoya as he mentors boxers to become prizefighters.

NOTE The nets have put no programming innovation into Saturday night.