National Petroleum News (NPN) has been the independent voice of the petroleum industry since 1909 as the opposition to Rockefeller’s Standard Oil. So, motor fuels marketing and retail is not just a sideline for us, it’s our core competency.
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consumer,” said Tricia Nichols, media portfolio projects lead at PepsiCo Inc. and group media director at the TracyLocke marketing agency. “We can help consumers understand where our products fit into their lives, which leads to a com- pelling reason to purchase our products.” Dispenser manufacturers are also on board with in-pump video options. Mark Williams, marketing manager of dis- penser applications at Gilbarco Veeder-Root in Greensboro, N.C., said his company recently partnered with Outcast to create interactive merchandising at the pump for its Applause Media System. Launched last fall, Applause™ TV combines advertising, news, and entertainment with on- demand coupon printing. “For an average retailer,” said Williams, “only a third of customers go into the store. But today, you’re fighting more than just the c-store down the street. The same products you sell may be offered at multiple competitors. So there’s a need for engaging point-of-sale marketing that gets the customer inside your store.” The same need is recognized by dispenser manufacturer Dresser Wayne of Austin, Tex. “More than half of fuel cus- tomers never leave the forecourt to shop inside the store,”said D.P. Rabalais, global marketing communications manager. The company’s iXT Media digital merchandising system, he added,“increases sales and builds brand loyalty by harnessing the power of multimedia marketing at the dispenser.” PROOF IN NUMBERS To measure the value of television monitors at the pump for both retailer and advertiser, Gas Station TV was independ- ently audited by Nielsen Media Research. According to Leider, 93 percent of consumers surveyed preferred gas sta- tions with GSTV, some 83 percent “thought it was a good thing for retailers to provide,” and stations with GSTV “had sales lifts of up to 78 percent.” Similarly, Outcast and PumpTop TV reports research that indicates more than 90 percent of fuel customers notice their screens, more than 70 percent considered at-the-pump advertising a good source of product information, and 75 percent could recall at least advertisement. Outcast notes that customers are a captive audience—with no DVR to skip over ads—so that viewers spend an average 35 percent more on days they fuel their cars. Eighty-seven percent of those surveyed said they found the programming to be entertain- ing and plan to watch again on their next fueling visit. A Nielsen study conducted from 2006 to 2008 for GSTV found that windshield washer fluid advertised on-screen had a sales lift of 42 percent and candy lifted 69 percent. Compared to c-stores without the pump video service, car washes saw a 78 percent sales, bottled water 60 percent, energy drinks 53 per- cent, and candy bars 15 percent. Similarly, research by www.npnweb.com NPN Magazine PumpTop TV indicated that products featured on videos enjoyed an average sales lift of 13 to 42 percent per month. The concept behind the content is simple—each TV seg- ment is followed by a promotion. Outcast partners include CBS, CNET, HGTV, BBC, DIY Network, and TV Land. On PumpTop TV viewers can watch the NBA and MLB net- works, FX, DIY, truTV, Better.TV, and other programmers. Gas Station TV offers custom-produced, exclusive, and con- stantly updated ESPN sports, NBCU news and entertain- ment, and market-specific AccuWeather forecasts. “The key is that everyone loves television,” Leider said. “Compared to static advertising, TV’s blend of full sight, sound, and motion makes for greater impact and aware- ness.” Specific promotional schedules are tailored to each retailer. After the retailer and GSTV agree on the amount of advertising to be run for the year, he explained,“then we cre- ate monthly promotional calendars, as well as help create and design what the announcements will look like. Tying in our national advertisers also drives people into the c-store.” Promotions can be also be used not only to push prod- ucts but also to build a retailer’s brand. “Some clients have been very successful at this,” said Leider. “They might point out their cleanliness or outstanding service, or a charitable event in which they’re participating.” Leider acknowledged that some fuel retailers may be skeptical. “With past systems that tried to transmit video content,” he said, “some providers weren’t able to deliver. Screens went dark after the networks failed.” Today, howev- er, the in-pump video market has consolidated into three major players—Gas Station TV, Outcast, and PumpTop TV. Installation time for GSTVs at a typical site is less than three hours. And since the technology is IT-based, programs are immediately up and running. “We maintain and monitor all televisions from our headquarters,”Leider said. “If a prob- lem occurs, 95 percent of the work can be done remotely.” WIN-WIN PROPOSITION National advertisers, suggested TracyLocke’s Tricia Nichols, can benefit from sponsoring promotions that increase brand sales—without taking money from retailers’ pockets. In 2010, for example, PepsiCo brands including Pepsi, AMP Energy drink,AMP Energy Juice, and Lipton Brisk were pro- moted to viewers via GSTV “just steps away from the prod- ucts available inside the convenience store,” she said. By the same token, the PepsiCo ad campaign generated a 213 per- cent increase in awareness of end the AMP Energy brand, 277 percent rise in purchase intent, and 150 percent increase in individuals willing the drink to friends and family. Marketing success hinges on crafting messages that target a specific audience or region, so that PepsiCo’s ability to tar- get gas station customers played a key role in its AMP Energy JANUARY/FEBRUARY 2011 23