The moment a cardholder swipes his card and types in his PIN at an ATM, the machine’s screen has his undivided attention until it completes dispensing funds.
Cardtronics Inc. is not going to let those seconds go to waste. The Houston-based ATM ISO will use the time to prime cardholders to spend some of the cash they just withdrew from the ATM to purchase products in the store where the machine is deployed.
To accomplish this goal, Cardtronics has signed an agreement with i-design plc, a Newport-on-Tay, Scotland-based company that advertises products on ATM screens.
Cardtronics is launching the platform, called atmAd, on 2,200 of its Vcom multi-functional financial kiosks that are deployed in 7-Eleven stores in 20 markets. The markets are in California, Florida, Colorado, Texas, Virginia, Oregon and Washington. Although the Vcoms are housed in 7-Eleven stores, Cardtronics purchased the machines from Dallas-based 7-Eleven in June 2007.
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Ever since Cardtronics wrote a check for the Vcoms, the ISO has found the machines to be an unprofitable investment.
In 2007, in a United States Securities and Exchange Commission filing, Cardtronics reported operating losses from the Vcoms. The company said it was giving the Vcoms 12 to 18 months to become profitable or the company would exit the business. The Vcoms initially offered check cashing, bill payments and money transfers. Cardtronics has removed some unprofitable services and added others that the company believes would make money. The ISO also has deployed Vcoms in stores in closer proximity to each other for a consistent customer experience.
Rick Updyke, president of Cardtronics U.S. Business Group, said the company is focused on getting the most out of its deployed assets. "I-design’s third-party advertising will provide Cardtronics with a new revenue stream," he said. "Cardtronics will be able to maximize its channel potential and provide value to consumers through relevant promotions."
I-design will sell ATM advertising space to third-party brands on behalf of Cardtronics. The agreements would allow advertisers to place their messages on the Vcoms in the United States, Cardtronics officials said.
The contract with Cardtronics follows a similar deal i-design signed with Bank Machine Ltd., Cardtronics’ U.K.-owned subsidiary. In September, i-design installed the atmAd marketing platform on 800 of Bank Machine’s cash-dispensing ATMs. Those machines are not multifunctional Vcoms.
In the U.K., i-design has placed advertising for several companies, including Pizza Hut, Volkswagen, Subway and British Airways, on ATMs.
I-design demonstrated how the advertising worked on its website. An advertisement for Pizza Hut appeared as the cardholder waited for the ATM to dispense cash. After the ATM completed that phase of the job, the machine issued a receipt. On the receipt was printed a British pounds off coupon to Pizza Hut.
The time a commercial appears on the ATM screen depends on the length of the cardholder’s transaction. A commercial appears for no longer than 40 seconds, said Sara Christmas, i-design marketing director.
Cardtronics piloted i-design’s atmAd campaign platform last April and May on 200 Vcoms at 7-Eleven stores in Orlando, Fla., said Joel Antonini, Cardtronics vice president of marketing.
On one of the ATM screens, i-design advertised $2 off a bottle of Bud Light beer and a freshly made sandwich. A discount coupon for the sandwich and beer was printed on the cardholder’s ATM receipt. The cardholder could purchase the food and drink at the 7-Eleven counter. Cardtronics and 7-Eleven would like cardholders to spend money in the stores, but i-design is expected to solicit advertising contracts from customers whose products are not sold at 7-Eleven.
ATM advertising is very effective, Cardtronics officials said.
“Independent research revealed that consumers in the pilot were highly receptive to ATM advertising with more than 95 percent recall of the advertised brand. Further, 94 percent of surveyed ATM users agreed that the transaction was a better experience when the advertising campaign was playing," a company spokesperson said.
