TV COMES TO GROCERY STORES
Markham Economist & Sun
Saturday June 9, 2007
By: Simone Joseph
|
Sjoerd Witteveen
Zee Najar, president of the Captive Channel, pretends to hold
up one of his screens for 7 million monthly viewers to see at Michael-Angelo's in Markham and 170 other locations across Canada.
Whether selecting apples or deciding between canned soups, shoppers at several grocery stores across York Region
remain close to news, weather information and, of course, in-store promotions as a result of Captive Channel,
a Markham company selling digital advertising screens.
Each location has six to 10 screens around the store, according to the company's website, www.captivechannel.com
Demand for this product stems from the fact it is becoming harder to reach
TV audiences, Captive Channel president and co-founder Zee Najar said.
"Television is saturated by the number of channels," he said. So retailers
are left wondering where to spend their advertising budgets.
The digital advertising concept is not new, as many gas stations use the
technology, but both Markham residents Mr. Najar and co-founder Raul Sukraj
have targeted grocery stores.
The company sells or leases the screens and creates content, some of it from
information supplied by the client.
The client can sell local advertising while Captive Channel collects revenue
from selling national commercials.
Captive Channel is in more than 170 locations across Canada including Weston
Produce Food Centre and Vince's Country Market in Newmarket,
Michael-Angelo's in Markham and Concord Food Centre Inc. in Vaughan.
Weston Produce had its screen installed last month. Shoppers like the new
technology, spokesperson Rocco Facchini said.
"I have heard all positive stuff. I have not heard any negativity about it
yet," he said.
"It is a great look for the store. It made sense to show advertising in a
store that sells the same products," he said.
The store's flyer goes up on the screen beside a commercial, as well as
weather and news information.
It is too soon to tell whether the venture has affected the store's bottom
line, he said.
Despite Weston Produce's feedback, there is risk shoppers will reject the
digital advertising, according to Marianne Marando, a professor in the
school of marketing at Seneca College's Markham campus.
"Consumers are feeling inundated with messages. They are bombarded. There is
no place to hide from advertising. You may turn off consumers because you
are being too intrusive."
'Consumers are feeling inundated with messages. They are bombarded. There is
no place to hide from advertising.'
There is a benefit to shoppers receiving product information at the store,
she said.
But, she warns the main message of the advertisement may get lost because
the shopper is watching the screen in a busy, distracting environment.
Another advertising concept yet to hit the mass market is responsive digital
advertising in a shopper's cart, Ms Marando said.
As you shop, you receive information about products. If you put a jar of
peanut butter in the cart, for example, a digital screen supplies
information about raspberry jelly in the store which you may want to buy.
Retailers are turning to digital advertising because people are not watching
as much TV, she said.
Four months ago, Vaughan's Concord Food Centre Inc. installed a Captive
Channel system.
"They (shoppers) enjoy watching something while they are waiting at the deli
counter or at the cash. It is something to look at, to see specials and
commercials," operations director Rina Virgilio said.
It is a bonus for the store that does not necessarily boost the bottom line,
she said. "It is a value added (tool). It adds to the ambience."
The future of digital advertising is murky, Ms Marando said.
"It is hard for me to predict if it will be successful. Consumers will
decide if they want to see it at the store."
But at least one large grocery chain is examining the idea of adopting the
digital technology.
"We are considering it," said Elizabeth Margles, vice-president of
communications for the Loblaw Company.
Source: YorkRegion.com - Markham - TV comes to grocery stores
