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Published in MediaPost’s Online Video Insider, “Online, In-Store: Two Big Opportunities for Video.”

In spite of the fact that most people - including those elusive teens and twenty-somethings - still spend a big chunk of time watching TV each day, the decrease in cost effectiveness of TV advertising is causing marketers to seek alternative platforms for their video ads. Right now, two big opportunities exist: online and in-store.

In-store media  reaches millions each week and provides an opportunity to influence people at the point of purchase. The Wal-Mart TV Network already rivals broadcast networks in terms of weekly reach, and market research firm Frost & Sullivan says that by 2011, 90% of retailers will have in-store digital screens.

Despite its scale, in-store advertising has had only patchy success to date. In the U.K., the major grocery chain Tesco endured three years of lacklustre results before figuring out what really drives in-store success: brevity. While online advertisers debate whether a pre-roll of 15 seconds is too long, Tesco’s marketing partner Dunnhumby recommends five seconds for screens placed in the main shopping aisles, because the power of these “alerts” rests not in their creativity but in their proximity to purchase. The alerts reported to be most effective are those for price-off events and new or seasonal items.

Shopper mindset will vary according to the type of store and the items being purchased, as well as the point during the shopping trip in which the advertising is encountered. Someone in the market for an HDTV screen who is unsure of the benefits of plasma versus LCD may appreciate a five-minute video on the topic. But someone in the grocery section of the local supermarket is unlikely to devote that amount of time to a video. In that setting, a quick news flash or reminder will work far better than an infomercial. The checkout line is yet another story; as they wait in line, shoppers will welcome some distraction to pass the time.