Wal-Mart Stores is partially lifting its six-year ban on providing sales data to syndicated market-research firms as part of a new study into the effectiveness of in-store media.
Speaking at Nielsen Co.'s Consumer 360 Conference in Hollywood, Florida last Wednesday, Wal-Mart's chief marketing officer Stephen Quinn said the retailer would only provide the sales data for use by members of the new Nielsen In-Store syndicate and only for use in that program, not for broader applications. Others among the more than 20 syndicate participants include Unilever, Kraft Foods, General Mills, Miller Brewing, Hewlett Packard, Kroger Co. and Meijer.
Wal-Mart will provide sales data from 1,000 of its over 3,000 U.S. stores to the Nielsen In-Store service, an initiative also backed by Procter & Gamble Co. and media agency, Starcom MediaVest Group. The Nielsen In-Store service, launched two weeks ago on a limited national basis, will roll out nationally in early 2008.
Regarding metrics, the program will count only "unique impressions" at the store level - defined as shoppers who actually walk down a particular aisle and have an opportunity to see the media or promotion in place.
Nielsen plans to be stringent in making sure stores are in 'compliance' with a media/promotion program, and is looking at four possible ways to audit compliance. Accurately measuring the effectiveness of in-store media has proved difficult because many stores or vendors don't put the whole program in place at every store it's scheduled for.
An initial test of the statistical system last year in 10 Wal-Mart stores, cross checked against in-person audits, showed audience estimates are about 76 percent accurate, which is better than expectations going in. Mr. Quinn said since the initial test, refinements have increased confidence to 85 percent.
Dina Howell, general marketing manager of global operations for P&G, who co-presented with Mr. Quinn, said in-store marketing has become more important as other forms of mass marketing have become more fragmented and less effective.
"Today, the click of the remote can cut the throat of even the best advertising in the world," she said.
Mr. Quinn added that getting to a generally accepted measurement of in-store audiences can also allow retailers to make substantial strides in the improving the store as a advertising medium.
"A lot of [analytical] tools are developed and can be applied," said Mr. Quinn, "if only we know people have been exposed to the advertising."
Discussion Questions: How will having sales data from Wal-Mart help in understanding trends in in-store media? What are some of the ongoing challenges in measuring shopper impressions to in-store media?