1. G2 ETA
EMERGING TECH ANALYSIS
200 Fifth Avenue | New York, NY 10010 | t. +1 212 537 3700 f. +1 212 537 3737 | www.g2.com
11/2/2011
POV ON:
2. EMERGING TECH ANALYSIS 2
200 Fifth Avenue | New York, NY 10010 | t. +1 212 537 3700 f. +1 212 537 3737 | www.g2.com
THE ELEVATOR PITCH
3GTv Networks brings a television and interactive screen
network into grocery stores, enabling marketers to reach
shoppers at the moment they are making their purchase
decisions. In-store networks have been around for a while, but
3GTv layers in a measurement system that tracks shoppers’
in-store movements and provides advertisers with audience
delivery metrics comparable to at-home TV.
ROLE ALONG THE PURCHASE DECISION JOURNEY
Inspiration Planning Shopping Experience Reflection
ADDRESSES SHOPPER NEEDS
INFLUENCES BRAND CONSIDERATION
PROVIDES AN IMMERSIVE BRAND EXPERIENCE
DRIVES BRAND PURCHASES (TRANSACTIONAL)
PLANNED PURCHASES
IMPULSE PURCHASES
BUILDS BRAND LOYALTY (REPEAT PURCHASE)
GENERATES BRAND BUZZ (SOCIAL)
BROAD USER ADOPTION POTENTIAL
LOW HIGH
Provide brand
messaging and
additional
product
information at
the point of
purchase
11/2/2011
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WHO IT’S FOR
Consumer
Shoppers interested in new products and ideas, and information
at grocery stores
Brand
Marketers that want to promote grocery products or to reach
audiences with relevant goods or services at the point of
purchase
Reach a captive
audience at
retail with
target-relevant
messages
G2’S POV
BRING BRAND MESSAGING TO THE POINT OF PURCHASE. 3GTv offers marketers
several ways to reach a captive audience of grocery shoppers with brand messaging
that can influence their purchases at a critical juncture in their purchase decision
journey, i.e., in-store. Unlike other out-of-home networks, 3GTv’s measurement and
tracking approach means that advertisers can purchase in-store airtime using
accepted at-home TV metrics, with verifiable audience delivery.
The company has just completed a limited pilot test but plans to expand over the
next year. Results are forthcoming. We recommend test-driving 3GTv’s network to
reach shoppers at retail. Use the shelf-edge displays to call out new products and to
cross-sell complementary products in other store aisles. Also consider advertising
on line-of-sight monitors to drive awareness of, and interest in, both products sold
at the grocer and products and services relevant to the audience of grocery
shoppers.
N/AN/A N/A
3. 33
200 Fifth Avenue | New York, NY 10010 | t. +1 212 537 3700 f. +1 212 537 3737 | www.g2.com
A CLOSER LOOK
Out-of-home networks at airports, gyms, offices and retailers are experiencing
tremendous growth as advertisers look for alternatives to broadcast TV. 3GTv is a
new out-of-home network focused on grocery retailers. The company outfits
grocers with two types of in-store media platforms. The first consists of double-
sided line-of-sight LCD monitors that are strategically placed so that they are in the
shoppers’ line of sight, at eye level, as they navigate through store aisles. Stores
typically have 60 monitors, which are synchronized to display identical blocks of
looped content, each about 28 minutes in length, and to deliver three message
impressions per store visit. Approximately 60% of the airtime is devoted to 3GTv
media buys (brand advertising) and 40% to the retailer (local and seasonal content,
tips). Content blocks are updated weekly and brands can get category exclusivity.
The second in-store platform consists of double-sided shelf-edge devices, which
are smaller and include a TV screen with audio, video and interactive touchscreen
capabilities. The shelf devices are mobile and can be placed at different aisle
locations, depending on advertiser needs. They are also IP-addressable, so that
content can easily be changed on the fly and tailored to specific stores. 3GTv
recently announced that it will be integrating near field communications (NFC)
functionality into these devices to give shoppers with NFC-enabled smartphones
additional content and special offers.
3GTv devices placed on shopping carts collect samples of shopper flow patterns
throughout the store in order to calculate audience delivery metrics similar to the
metrics of at-home TV. This measurement approach means that airtime on the
in-store line-of-sight TV platform can be purchased using the same rating-point
metrics as those used in at-home TV. 3GTv envisions creating partnerships with
television networks that will allow advertisers to do a media buy that spans
in-home and in-store.
In addition to providing advertisers with a rating-point model comparable to that of
at-home TV, 3GTv utilizes an ad verification system for shelf-edge and line-of-sight
devices to ensure that shoppers have been exposed to the media buy. The company
has just wrapped up a pilot test in nine Bloom grocery stores in Washington, D.C.,
Maryland and Virginia. Results are not yet available, but feedback has been
positive.
1
2
Synchronized ads run on lineofsight screens; PepsiCo uses the shelfedge unit
to promote the soft drink in the snack aisle; McCormick uses the shelfedge unit
to alert shoppers to product bene=its.
EMERGING TECH ANALYSIS
11/2/2011
4. 44
200 Fifth Avenue | New York, NY 10010 | t. +1 212 537 3700 f. +1 212 537 3737 | www.g2.com
EMERGING TECH ANALYSIS
11/2/2011
BRAND OPPORTUNITIES
1. New product introductions. Leverage the sight-line and shelf-edge
platforms to draw attention to new products. Research shows that
consumers rely on in-store media to discover new products. 3GTv ad
units can provide them with enhanced brand content to bring the product
to life (e.g., usage-tips videos, testimonials).
2. Cross-selling. Utilize shelf-edge units to alert shoppers to
complementary products and increase share of basket. For example,
promote crackers in the soup aisle.
3. Nongrocery product promotions. 3GTv provides a new out-of-home
network to reach a captive audience. Line-of-sight advertising does not
need to be limited to grocery products only. Consider the platform for
any ad campaign (e.g., entertainment, services, automobiles, credit
cards, apparel) that would be relevant to the audience of grocery
shoppers. 3GTv’s proprietary research indicates that 25-34 year-old
shoppers are particularly receptive to this form of in-store media.
COSTS
3GTv charges brands $17-$25 per week per shelf-edge device per store.
Line-of-sight pricing is based on actual audience delivered, and ads run
$5-$7 CPM. 3GTv works with advertisers to adapt and optimize brand ad
units to fit within image size and audio guidelines.
NOTE
We will be happy to discuss 3GTv opportunities with you further and to tailor
this ETA and recommendations to your specific business objectives and
needs.
COMPETITIVE SPACE
3GTv competes with a variety of captive audience out-of-home networks,
including PRN Networks and RMG Networks. However, 3GTv is the only one
that can measure shopper flow patterns and translate them into delivery
metrics that are comparable to at-home TV rating points. This capability
enables the service to partner with TV networks to trade airtime on 3GTv on
an equivalent-audience delivery basis.
PARTNERS
American Express, B. Smith Home, Campbell Soup Company, CW Network
(Washington, D.C., affiliate), Dietz & Watson, General Mills, Johnsonville
Sausage, Kraft Foods, McCormick & Co., Nestle Purina, PepsiCo
CAMPAIGN EXAMPLES
PepsiCo: The food and beverage manufacturer included several brands in the
pilot test. Shelf-edge units placed in the snack aisle (e.g., near Doritos) and
on freezer cases (e.g., pizza) reminded consumers to stock up on Pepsi and
also promoted the Pepsi Refresh Project. Results from the initial pilot
campaign have not yet been made public. PepsiCo indicates that it was
pleased with the results and 3GTv’s impact on basket size and looks forward
to the service’s expansion to more retail locations.
Multibrand Labor Day Campaign: A recent Labor Day holiday content block ran
on line-of-sight devices deployed at 9 Bloom stores, with segments featuring
grilling tips and tricks by store associates, as well as messaging from a
variety of partner brands. It also included a text-to-win promotion for a $500
Bloom gift certificate or grill, which yielded entries by 2% of store shoppers.