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An E*TRADE Access pilot in Manhattan is an early test of the topper, a medium that may help put a new spin on ATM advertising.

January 7, 2002

A four-month pilot currently under way in Manhattan could help make the case for putting ATM advertising on a high topper, a screen that sits atop the actual machine. But the jury still seems to be out on using full-motion video, a format that may be a little too flashy for some advertisers.

RBuzz Inc., a media management company, is working with E*TRADE Access, Inc. (formerly Card Capture Services), a wholly-owned subsidiary of E*TRADE Group, to test the delivery of digital advertising at 25 ATM locations, using toppers manufactured by Triton Systems.

Currently, advertisements for E*TRADE Bank are running on the toppers. But more advertisers will join the pilot soon, said Saul Caprio, director of marketing for E*TRADE Access.

"The purpose of this is not for me to run E*TRADE ads but to demonstrate the economic viability by selling advertising to someone who'll pay for it," he said. "The issue everyone has, including us, is coming up with the right model to charge what people seem to be willing to pay. No one has clearly defined a profitable model."

The process has become even more complicated by an economic downturn in recent months, which has been accompanied by a reduction in many advertising budgets. Because ATMs and ATM toppers are new advertising mediums, Caprio said, they may feel the pinch before better established media like radio and television.

Chantal Vaillancourt, president of RBuzz (USA Inc.), said four ads, each six to 10 seconds in length, will run continuously on the toppers. All will utilize static screens. While the full-motion video capability is there, Vaillancourt said advertisers haven't yet expressed much interest – although it may be added to the mix later.

"We don't want to overpackage the product. That will just make the pilot cost more than necessary," she said. "With this technology, we can scale it to whatever level we need."

In this early stage, full-motion video presents a "chicken or the egg" dilemma for companies trying to sell ATM advertising, said Gary Walston, president of ATM Advertising Solutions, Inc. While it will most likely appeal to large national companies that already have television ads in an MPEG video format, those advertisers want more critical mass, a large number of ATMs in densely-populated metro areas.

"You're not going to be able to sell 25 machines to a national advertiser," Walston said. "You could sell that to a local or regional advertiser, but they're not going to want or need full-motion video."

"It would be a lot easier to sell if I had 100 locations in New York City," Vaillancourt said. But, she added, the advertisers RBuzz has approached are "interested in the bigger picture."

Advertisers will pay a cost-per-thousand (CPM) rate, which is calculated using a combination of foot traffic, when available, and transaction volume. The topper makes it easier to include foot traffic, Vaillancourt said, because its high-profile, 15-inch screen is more likely to catch the eye of consumers other than those using the ATM.

While this is true, Walston said, the physical placement of a machine is a crucial part of making the formula work. "The topper is bigger and up higher, so it's going to capture a customer's attention more than a 5-inch screen. But you need to have the ATM right by the front door or the counter, where everyone who comes in or leaves has to pass by and see it."

According to Caprio, most of the 25 ATMs in the pilot are located in neighborhood groceries or delicatessens. Because those stores tend to attract customers from the immediate vicinity, advertisers can target their campaigns to a particular demographic group.

"(The advertiser) places value not only on CPM impressions but on the geographic location," he said.

Another technological element that is available with the toppers but is not currently being utilized is audio. Caprio said some of the merchants expressed concerns that the noise level would be too high for their mostly small stores.

"We're taking the conservative route," he said, noting that the ATM medium is still largely untested. "We can add elements (like full-motion video and audio) later and see if there are incremental differences in transaction volumes, in store sales or in any other areas."