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The Market Leader in In-store Broadcasting
Realising an asset.
The fact that any advertising medium's intrinsic value is directly proportional to the number of viewers or listeners, logically stipulates that any entity that can effectively communicate to a large number of commercially viable people must also be valued for its media capabilities.
This comparative look feeds the idea that a retailer communicating with any number of customers, can value his output the same way as a radio station would.
This viewpoint can even be further enhanced by the fact that the retailer not only converted his customers to 'listening' customers, but also knows the following facts about them:
- The total size in value of the market.
- The total size in numbers of the market.
- The category-breakdown of each market segment, e.g. in the pet food division the retailer know what brand is the top seller, etc.
- The frequency of the purchases.
- The demographical breakdown of the market.
- The purchasing profile, e.g. when the 18-34 year old customers are visiting the store, etc.
- The projected potential of the market.
Keeping all of the above mentioned in mind, it doesn't take much thinking to realise that the retailer accompanies the best position to communicate to the store's clients through Radio Retail in the store. The same commercial message on a commercial radio station could not be as effective as the same message being delivered to the customer they are standing in the store, in front of the promoted product and with money at hand.
By realising this potential, the development of the in-store radio opportunity not only adds value(due to the additional sales being generated because of the in-store promotions), but also adds to the value of the non-tangible assets due to the “commercial radio asset”.
Many times over people sniggered at this observation, but would with respect look at a National Radio Broadcaster selling itself to investors on the basis that its commercial viability lie in the fact that it has 32 million listeners. Why then would one laugh at a retailer with 32 million customers selling US$ 26 billion, claiming the same value?
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