Wal-Mart Canada saw good results when it launched an in-store TV network last summer in 60 stores.
The retail giant reported a 17% sales lift in a five store test area. And of that, 4% was an incremental lift from people who said they bought something after watching an ad, Mike Dombrow, director of marketing for Wal-Mart Canada Corp., told attendees Monday at the National Retail Federation Big Show in New York City.
The company is using the video advertising display network to engage customers and to deliver messages to help influence buying decisions.
“Digital media has the power to stimulate impulse sales,” Dombrow said. “If you use it well, it helps consumers make good decisions.”
Another 40 digital displays will be installed in Wal-Mart Canada stores July, Dombrow said.
EK, a digital merchandising company, and its retail subsidiary, ShopCast, targets Wal-Mart customers with “narrowcasting,” a term used to describe content delivered to reach a specific audience. The firms use Wal-Mart’s customer information and other data to reach shoppers when and where they’re more apt to make a purchase.
For instance, if a shopper is looking for a digital camera, an ad might appear on the monitor reminding people to buy a media card.
Beyond brand messages, Wal-Mart Canada is also running animated character spots targeting moms with young children. The clips include the main character, Lisa, her husband, three children and a dog. The company plans to run new animated ads this year that show characters endorsing products, Dombrow said.
Dombrow outlined some top reasons why retailers and marketers should consider video advertising displays:
- It entertains and keep customers engaged
- It drives impulse sales and improves sluggish categories
- It creates a revenue stream from brand marketers
- It helps promotes private labels
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