7-Eleven TV

Retailer to launch one of the nation's largest in-store digital networks

LOS ANGELES -- 7-Eleven Inc. has contracted with Digital Display Networks Inc. (DDN) to create one of the nation's largest out-of-home digital networks in more than 6,200 7-Eleven stores throughout the United States and Canada. Upon its full national deployment, 7-Eleven TV is expected to reach an estimated 190 million monthly viewers. Features of the in-store network will include around-the-clock programming with national and local entertainment news and weather, as well as exclusive content fit for convenience shoppers.

Other original content will consist of commercials [image-nocss] advertising 7-Eleven's signature, proprietary brands, in-store and out-of-store brands and special 7-Eleven promotions. Network programming will be divided into multiple dayparts to promote specific items at the time when they are most relevant to customers.

Two LCD high-definition TV monitors with directional audio, which reaches only those consumers positioned in front of monitors, are being installed in each store, with the complete network expected to be operational nationally by the fourth quarter of 2010.

DDN is providing turnkey services, supervising installation, content production and advertising sales.

The in-store spots available on 7-Eleven TV are intended for manufacturers and distributors whose products are carried in 7-Eleven stores, with the ability to reach customers and influence their purchase decision.

"7-Eleven TV marks a new generation of advertising for us and will complement our external advertising programs," said Kevin Elliott, 7-Eleven's senior vice president of merchandising and logistics. "Communicating to customers directly in-store will enhance our effectiveness in promotion and trial of our foodservice offerings, proprietary and private-label products."

Thomas L. Harrison, chairman and CEO of Diversified Agency Services, Omnicom Group Inc., said, "Digital out-of-home networks are an emerging platform that deliver content-rich promotional messages at point of purchase. The creation of 7-Eleven TV, with its ability to reach some 190 million consumers monthly in more than 6,200 7-Eleven stores, truly establishes the relevance of this advertising medium as a vital channel for brands seeking to engage shoppers and effectively motivate them to purchase."

Added Elliott: "All of the network's content will be designed and created specifically for 7-Eleven and our customers, giving us a vehicle for very targeted advertising and programming.

David Veckerelli, co-CEO of DDN, said, "Our aim is to offer 7-Eleven customers up-to-the-minute news, weather and interesting information about new products, specials and promotions at the point where they are making purchasing decisions," said David Veckerelli, co-CEO of DDN. "The strategically placed screens and directional audio will help inform them of special promotions and products that they can take advantage of immediately while in the store."

And Darren Mann, co-CEO of DDN, said, "According to industry statistics, digital out-of-home networks have been experiencing significant growth over the past several years. The ability of these networks to drive purchase at the point of sale and generate incremental revenue for retailers through advertising is the foundation for this growth. Because of its ability to generate some 2.3 billion consumer impressions annually, the 7-Eleven TV network approaches the national networks in viewership but, even better, reaches them when they are actually in a shopping environment and able to make a purchase."

DDN, Los Angeles, is a digital network provider that creates and installs digital networks, produces and manages all content and administers advertising sales to provide a singular digital signage solution at point of purchase. It was formed by the principals of Explorer TV, the nation's largest in-hotel digital visitor information TV network, servicing more than 150,000 hotel rooms in major U.S. and European cities, as well as cruise ships, visitor information centers and airports. Founded in 1992, Explorer TV was a pioneer in place-based media where advertisers are integrated into network content. All of Explorer TV's content is 100% advertiser supported.

Based in Dallas, 7-Eleven operates, franchises or licenses approximately 7,850 7-Eleven stores in North America. Globally, 7-Eleven operates, franchises or licenses more than 36,600 stores in 15 countries. During 2008, 7-Eleven stores worldwide generated total sales of more than $53.7 billion.