Wal-Mart Networking Consumers with PRN - firm's broadcasting network - Brief Article

Brandweek, July 2, 2001 by Sandra Dolbow

Having safely established itself as the world's No. 1 retailer, Wal-Mart is targeting another sector for conquest: media. The Bentonville, Ark.-based company has completed a storewide rollout of in-store broadcasting network PRN to all 2,600-plus U.S. Wal-Mart and Supercenter locations, as well as Sam's Club locations nationwide.

With more than 90 million shoppers making their way through these stores each week, Wal-Mart's PRN is on-par with traditional TV networks in terms of potential viewers. The system of 10-to-12 monitors per store is operated by Premier Retail Networks, San Francisco.

Broadcasts include informational and entertainment programming and paid advertising. Content partners include ABC News--which creates Wal-Mart-specific news briefs--Discovery Channel, Oxygen, Tech TV and VH1. Programs vary from Inside Wal-Mart (a new product show) and Your week at Wal-Mart (seasonal information) to concerts starring Garth Brooks, Reba McEntire, Trisha Yearwood and Hanson.Via PRN interactive programming, Wal-Mart shoppers also can preview music CDs, home videos and software before purchasing select products.

Paid advertisers include Unilever, Procter & Gamble, Bayer, Revlon, Direct TV, Frito-Lay, Colgate and Sony, which has signed on to promote PlayStation 2. Ad rates are competitive for the number of viewers reached depending on frequency and time of day and work off Nielsen measurements. PRN's renewal rate by major advertisers is 90%, according to Mark Mitchell, PRN evp-sales.

Ray-O-Vac, a charter member since the system was installed in Wal-Mart stores about three years ago, supplements ads created specifically for PRN with its regular TV ads and sponsors special programs developed by VH1.

PRN also creates customized in-store programming and interactive networks for such retailers as Sears, Circuit City, Best Buy and Footaction USA. Not on the list are Wal-Mart's mass merchandise competitors Target and Kmart.

"This is mass media that is cost-efficient," said Mitchell. "It builds brand equity at POP."