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First-of-its-Kind Convenience Store Advertising Channel to Reach 27 Million Shoppers Daily.

Publication: Business Wire
Date: Tuesday, June 25 2002

Business Editors

InStore Network from Onvance Gives Packaged Goods Marketers a Dynamic

Point-of-Purchase Vehicle to Increase Sales, Build Brand and Improve

C-Store Execution

To influence the buying decisions of more than 27 million daily convenience store

visitors, Onvance today unveiled the InStore Advertising Network, the first-of-its-kind proprietary television network of news and entertainment designed expressly for the convenience store (c-store) environment.

Featuring customizable, contextual advertising, the InStore Advertising Network is one of three new services announced today by Onvance, a marketing services company founded by six leading petroleum and a technology company, including Conoco, Crown Central Petroleum, Hughes Network Systems, Irving Oil, Suncor, Tesoro and Xtramart.

Leveraging a direct-to-the-store broadband satellite infrastructure, the services from Onvance include:

-- Entertainment, sports, weather, music and trivia about c-store products

-- Customized ads with day-part or promotion specific messaging

-- Sponsored programming with product placement

Onvance is deploying these new services in an effort to redefine the c-store and small-box retailing environments as reliable, operationally efficient and always-relevant destinations for today's busier-than-ever consumers.

"With 62 percent of Americans shopping at c-stores, the InStore Advertising Network has the potential to impact 10 billion transactions annually," said Alan Slothower, President of Onvance. "Recognizing the potential of this growing channel, marketers are turning to the InStore Advertising Network to support promotions, maximize campaign effectiveness, drive sales and increase brand awareness."

Leading Brands Pilot Campaigns on New Advertising Channel

Several packaged goods companies have already embraced the InStore Advertising Network include PepsiCo, The Coca-Cola Company, Pfizer, Interstate Batteries and Dr. Pepper/Seven-Up (DPSU).

"We are very impressed with InStore's ability to increase sales and generate brand awareness in the convenience store environment," said Phil Pacific, Director of Channel Marketing for DPSU. "We've found that the customized programming that is broadcast on the network is a great tool used to reach 'active consumers' who are out of their homes, in retail stores, with money in their hands, making buying and brand decisions, where our products live."

Trial Proves InStore Advertising Network Increases Sales, Builds Brand

An intensive four-month trial revealed the InStore Advertising Network improves both awareness and sales for brands in the c-store environment. Specifically, the trial revealed:



-- Entertainment, sports, weather, music and trivia about c-store products

-- Customized ads with day-part or promotion specific messaging

-- Sponsored programming with product placement

New Network Helps Product Marketers Improve C-Store Execution

When integrated with a promotion, advertisements on the InStore Advertising Network resulted in an additional 41 percent sales lift, representing 140 percent more awareness than traditional point-of-purchase signage.

InStore Advertising Network programming includes:



-- Entertainment, sports, weather, music and trivia about c-store products

-- Customized ads with day-part or promotion specific messaging

-- Sponsored programming with product placement

The InStore Advertising Network carries 60 percent brand advertising and 40 percent entertainment news, sports and weather content designed to make the c-store a more entertaining place to shop. Its fast pace is tailored for the c-store environment where quick bursts of content (10-, 15- and 20-second spots) capture shopper attention. Advertising and promotional programming may be based on the time of day and tailored for specific chains and/or local markets.

To produce the InStore Advertising Network, Onvance has partnered with RMS Networks, the creators of made-for-retail networks that touch more than one million customers daily. RMS customers include JCPenney, Advance Auto Parts, The Sports Authority and Brite Smile. RMS Networks produces and distributes InStore Advertising Network content through a satellite and digital broadcast system customized specifically for Onvance.

Availability and Pricing

The InStore Advertising Network is broadcast daily in more than 500 locations throughout North America and will encompass more than 2,200 locations by the end of the year. When rollout is complete in 2006, more than 30,000 locations (25 percent of all convenience stores) across the United States and Canada will feature the InStore Advertising Network. Advertising and promotional packages are available immediately. Pricing terms vary depending on program scope. For more information or sales contact information, call 1-404-942-2600.

About Onvance

Onvance is a marketing services company that enhances the relationship between retailers and consumer packaged goods companies through value-added in-store services and innovative technology solutions. Founded by seven leading petroleum and technology companies, including Conoco, Crown Central Petroleum, Hughes Network Systems, Irving Oil, Suncor, Tesoro and Xtramart, the company leverages a direct-to-the-store broadband satellite infrastructure, making it faster and less costly for retailers to run transactions, communicate and provide innovative new services to customers.

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