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; that even using the term "in-store TV" 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 BreenManaging Director, ContentIn-Store Marketing Institute

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