Theories of Evolution

The evolution of in-store marketing continued this month with two different events connected by a common catalyst.

First, industry bellwether Procter & Gamble released a fiscal 2007 annual report that included a significant restatement of historical ad spending data. The restatement incorporates outlays for displays and third-party in-store media into the traditional advertising expense line -- alongside media spending -- rather than classifying them as a separate component of selling, general and administrative expenses, as the company did previously.

This change in accounting is simply a case of P&G quite literally putting its money where its mouth is: for several years, the company has been espousing the importance of in-store marketing for its overall strategy, as well as its belief in the store as a bona fide advertising medium. (For some recent thoughts in that regard, see The Hub's interview with Dina Howell in this month's Highlights.)

That conviction is why Bob McDonald, P&G's chief operating officer, is speaking at the In-Store Marketing Expo next week as part of a panel discussion on the P.R.I.S.M. project -- which could potentially have all consumer product marketers similarly professing the importance of in-store advertising.

The other significant event was the acquisition of in-store "television" operator SignStorey by CBS. The broadcast TV giant will rebrand SignStorey's retail network -- currently installed in about 1,400 supermarkets -- as CBS Outernet and use it to deliver both paid advertising and promotional content.

I put quotes around "television" above because most industry experts strongly advise against using the store like a traditional ad medium; one executive at P&G has been known to correct those who even use the term "in-store TV," because it improperly implies that a retail network can operate on a model akin to network or cable TV without addressing the uniqueness of the retail environment, the objectives of retailers, or the needs of shoppers.

Will CBS turn the network into another "CBS Eye on American," which offers promotionally driven content and paid advertising programs to "captive" American Airlines passengers? Or will it continue the collaborative work SignStorey has undertaken with retail clients to develop content that enhances the shopping experience and increases store sales?

One sign that CBS might be heading in the right direction was the appointment of Jeff Weidauer as vice president of marketing for the Outernet operation. Weidauer, who is speaking at next week's Expo on "Understanding Shopper Behavior," was until recently the director of advertising for Supervalu. One of his responsibilities in that role was developing effective strategies for the SignStorey network at Albertsons. (For some of his findings, see the Highlight below for his In-Store Marketing Summit presentation.) In theory, then, he should help CBS understand the most effective plan of attack.

The catalyst for these events should, by now, be obvious: the growing understanding of the store as an essential venue for product marketing. The evolution has just begun.

Peter Breen
Managing Director, Content
In-Store Marketing Institute

Members: More information here.

Retailer Profiles: Walgreens and CVS

Between them, the drugstore channel's two leading chains comprise more than 12,000 stores and nearly $100 billion in retail sales. And while each retailing giant has strict policies toward brand-supplied P-O-P materials, they both provide numerous marketing and merchandising opportunities within their stores. Our coverage includes hundreds of related images.

Members, view the profiles: Walgreens | CVS

Store Checks: Food Lion's D.C. Variety

In 2006, Delhaize America's Food Lion division undertook a market-wide renovation of 60 stores in the Washington, D.C. metro area. The result was a transformation that produced 40 Bloom stores and 14 Bottom Dollar locations, giving the chain three distinct formats in the region. In-store intelligence agency Carroll Media Services provides field reports on the three stores highlighted by more than 100 images of merchandising activity.

Members: View the store checks.

Desktop Marketing Conference: "Optimizing Shopper Marketing via Digital Media" by Jeff Weidauer, Supervalu, and David DeBusk, DS-IQ

Proper use of in-store digital media not only can increase short-term sales of specific products but also can provide sustainable lift for entire categories. That's one of the important lessons Supervalu learned by working with DS-IQ to measure the effectiveness of its digital ad network. In an audio-enabled presentation from the In-Store Marketing Summit, Weidauer (then Supervalu's advertising director) and DeBusk (DS-IQ's vice president of sales) provide additional learning from their research of this evolving in-store tactic.

Members: View the presentation.

Industry Trends: The Hub on In-Store Marketing

Tesco's Simon Uwins discusses the upcoming debut of Fresh & Easy Neighborhood Market, Procter & Gamble's Dina Howell stresses the need for shopper insight, and BP's Ann Hand describes how to make the brand message "a little better" in exclusive interviews with The Hub magazine. Other features courtesy of Hub publisher Reveries.com include a roundtable featuring representatives from Best Buy, True Value and Cadbury Schweppes discussing best practices in research.

Members: View the articles here.

Welcome New Institute Members

The In-Store Marketing Institute is delighted to welcome new and renewing members to the Institute family. Below is a list of the companies that signed up recently. Welcome aboard.

• AAA Publishing
• ACCO Brands
• ALL YOU Magazine
• AMD Industries Inc.
• Canadian Tire Corporation Ltd
• Carhartt Inc.
• CVS/pharmacy
• Ferrara & Company Advertising & Marketing LLC
• Frontline Marketing
• G2
• Gladson Interactive
• Hallmark Cards Inc.
• Heinz North America
• ITW Brands
• Marketing Support Inc.
• MindShare
• Ovation In-Store
• Solutions Group
• Stephens Direct
• Stronghaven Inc.
• Sun-Rype Products Ltd.
• The Home Depot
• WW Grainger
• Wyse Advertising