MAY 2004 HIGHLIGHTS...
	Director's Note: Changing Channels   New Content Initiative: In-Store Media   Tactical Insights: High-Visibility Packaging Desktop Marketing Conference: Managing Brand Meaning In-Store by Source/Inc. Research: Consumer Decision Trees by Meyers Research Center

Director's Note Changing Channels

The television community again crosses its fingers this month, hoping that the annual Upfront ad-buying market remains strong despite another year of debate over the relative effectiveness of TV advertising. Meanwhile, proponents of in-store media are hopeful that the rollout of a television network inside Tesco, the U.K.'s largest grocer, will jumpstart the prospects of retail narrowcasting as a legitimate ad buy here in the U.S. Industry pundits have been drawing the curtain on TV advertising for several years now. (They've done the same in the past with print and radio, and those shows still haven't closed either.) And futurists have been promising the era of in-store TV for nearly a decade. (Wal-Mart aside, there haven't been many supporters.) Could this finally be the year when marketers admit that TV advertising is no longer effective enough to serve as the primary marketing tool? Might we finally see significant progress in developing the retail environment as an alternative advertising conduit? Well, yeah, maybe. The evidence is still too insufficient to go ahead and schedule the revolution. But there have been a few recent signs: What has been a steady decline in TV viewership for any one program or any single network this year turned into the alarming defection of an entire demographic group. Now where do you go to reach 18-to-34-year-old males? Even network NBC has decided that Best Buy might be a logical place to find them.   Tesco is admired as a retail innovator, so its rollout of a major narrowcasting program is a big deal. Kroger, for example, currently is in the process of overhauling its loyalty-card program to emulate what the British chain has done in that area. Food retailers might view Tesco's TV initiative as a similar bellwether.   Reports that another U.S. TV conglomerate plans to fund installation of an in-store TV network as a promotional vehicle for its programming could be the most significant step yet. If advertisers outside the retail world start viewing the store as an effective marketing medium -- and would be willing to help eliminate the cost prohibitions that have kept many retailers from jumping in -- the revolution might very well be upon us. In-store media historically has been regarded as detrimental to display merchandising. That's because funding for these tactics usually comes from the same below-the-line marketing coffers, and not from advertising budgets. If the aforementioned initiatives continue, both the perception and the reality should change. But that either-or debate has been counterintuitive all along, as results from another recent U.K. trial attest: In measuring the effectiveness of a dynamic digital signage network (another tactic long in the development process), convenience-store operator Spar found that ads were "most effective" when the products being promoted were displayed "conveniently close" to the TV screens. Media, in any form, can only do so much on its own. As always, we encourage your feedback and welcome your support. Sincerely, Peter Breen Managing Director, Content Click here for more information. »

New Content Initiative In-Store Media

Beginning this month, the Institute formally expands its coverage of in-store media with a variety of content looking at TV, radio and at-shelf systems. Highlights include articles on Tesco's retail TV plans, NBC's activity in the consumer electronics channel, and results from Spar's dynamic digital signage test. You also can check out a new directory of leading in-store media suppliers and an image gallery of available media options. Members: View the articles here. »

Tactical Insights High-Visibility Packaging

Merchandising strategies within the club store and supercenter channels have fueled a new wave of packaging innovations that serve a dual purpose: helping products stand out on crowded shelves while reducing the potential for theft. Tactical expert James Peters looks at the benefits of the clamshell blister and other forms of high-visibility packaging. Members: View the article here. »

Desktop Marketing Conference Managing Brand Meaning In-Store by Source/Inc.

Striking a balance between a brand's desire to make a visual impact in the store and the retailer's need to present its own consistent image can be a bit like arm wrestling, says Bill O'Connor, president of marketing consultant Source/Inc. The two needs are not mutually exclusive, however, and successful brands develop meaningful cultural connections that can enhance the retail environment. Listen to "Culture & Context: How Successful Brands Manage Their Meaning In Store," originally presented at The P-O-P Show/New York. Members: View the presentation here. »

Research Consumer Decision Trees by Meyers Research Center

Manufacturers who sincerely want to help retailers manage categories by providing "Decision Tree" reports on purchase influences should deliver more objective, less self-serving analysis. They also should more clearly define categories and sub-categories, provide regional and consumer-segmentation analysis, and be more timely about updates. These suggestions come from 100 leading retailers surveyed in summer 2003 by Meyers for this special report. Members: View the research here. »