7-Eleven TV to Target 200 Million Viewers Monthly

Dallas -- Acknowledging the success of other retailers with in-store television networks, 7-Eleven is in the process of rolling out its own video service to more than 6,200 stores in the United States and Canada. When the operation is complete by the end of 2010, the network will reach an estimated 190 million viewers every month, according to the company. "We will, when completed, have more than 12,000 screens available for advertising and informing our clients," says Kevin Elliott, senior vice president of merchandising and logistics. "This should make our network an attractive outlet for advertisers and enhance our customers' shopping opportunities."The network is the culmination of a three-year process for 7-Eleven, which included customer and technological research and a six-month pilot program, in which screens were installed in 60 stores in central California, Dallas, Miami and Orlando. "We took a very disciplined approach of research, testing and verification," says David Veckerelli, co-CEO of Digital Display Networks (DDN), the Santa Monica, Calif.-based company providing turnkey services (including installation, content production and advertising sales) for the network. "They're giving us access to 190 million customer visits a month. They wanted to make sure every aspect of the program worked well."That includes the placement of the two LCD monitors that will be present in every store. Rather than placing them in the checkout area (as they are often in grocery chains), the screens will be in the areas that have the highest dwell time -- the grill and the coffee bar, Veckerelli says. Considering the stores' relatively small size compared to other retailers with in-store networks, the video network will include directional audio that limits the listening range to areas within proximity of the screens, he says. The upshot is that while the screens will be viewable throughout the store, the audio won't be a distraction to customers (or an annoyance to employees)."We view the audio to be an add-on benefit to the video," Veckerelli says. "The audio is one area that we are continuing to refine and make even better."To accommodate the retailer's 24-hour schedule, DDN has divided programming into five dayparts: morning, lunch, snack (afternoon), dinner and late night. "Each daypart has a distinct look and feel," Veckerelli says. "We know in a general sense that there's different missions for the different customers throughout the day."For instance, late night will have more energy, while the morning programming will be much more crisp and direct, and the daytime programming will be more family oriented, Veckerelli says. The programming mix will be divided among 7-Eleven advertising (38%), in-store brands (29%), outside, non-competitive brands (26%), and news and weather (7%), playing on a three- to five-minute loop, Elliott says, though that may be tweaked as the program becomes fully operational. "We recognize going in with such a new concept in a convenience-first atmosphere that we will have to tailor the message and develop learning from interactions with our customers," Elliott says. The company does have a decent idea of what works from its pilot program, Elliott says. The operational and market tests included independent customer surveys about their experiences with the networks and what others in markets outside of the test wanted in an in-store network. "Based on this research, we developed the key elements we need to make the program successful, complement our future business growth goals and appeal to the customer base," he says. Installation of the systems is already under way, and the company expects to have it fully installed (DDN's contract requires 80% participation from store franchisees) and operational by the end of 2010. Currently, plans only call for the network to operate in the U.S. and Canada, though there has been interest from international markets as well. "We prefer to prove the concept and take the polished version with demonstrated success to our licensees," Elliott says. "We can then [ask others] to participate in the network to enhance our standing with advertisers and customers worldwide."

7-Eleven TV to Target 200 Million Viewers Monthly

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