When Wempe Jewelers wants to lure well-heeled travelers to its store on Fifth Avenue in Manhattan, it snuggles up to them in their hotel rooms. No, not like that. For the past eight years, the company has relied on the in-room television service Applevision, established in 1981 to provide programming to guests at New York City’s top hotels. Wempe’s 30-second spots, which air 1,400 times a month, have become the catalyst to its integrated marketing communications success.

“Applevision spots give a three-dimensionality to our stores, which a print ad doesn’t,” says Beth Siverling, who handles integrated marketing and public relations for Wempe. “And the program reaches the high-end hotels where our customers stay.”

Broadcast around the clock, Applevision’s programs present a sophisticated blend of entertainment and information, allowing viewers to find out where to shop, eat, sightsee, and go clubbing in New York. Applevision also offers a broad menu of health, finance, and lifestyle tips. Hotels and potential advertisers were skeptical at first, but as City-Buzz, Applevision’s programming network, honed its demographic reach, companies grew more impressed with the customer response.

“Companies weren’t getting the bang for the buck from conventional TV advertising,” says CityBuzz COO Joann Butler. “We offered a creative and effective broadcast alternative.”

Big Potential Market
Domestic and foreign travelers spend $1.6 billion a day in the United States, according to the Travel Industry Association of America. That potential market has led City-Buzz to expand its in-room programming to 804 hotels in 22 locations nationwide, reaching 9.4 million viewers each month — an advertiser’s dream. A Nielsen survey found that nearly 70 percent of hotel guests in New York, Chicago, Philadelphia, and Washington, D.C., turn to pre-formatted in-room programs. Even more impressive, two-thirds of respondents say such programs influence their dining, entertainment, and buying decisions.

Seen in this light, the rate sheet quote for a 30-second, monthlong spot on Applevision ($12,500) is reasonable. California-based media researcher iSupply says the in-room media industry could triple over the next five years, to $17.4 billion. The revenue potential has created a highly competitive environment: In-room programming providers now include a mix of media giants (LodgeNet Entertainment, Otrum and HBO) and smaller independents (CityBuzz and Broadway Channel).

Not all advertisers are selling specific products. American Express and British beverage giant Diageo, among others, have effectively used Applevision’s in-room service to attach their names to public service announcements. But commercial advertising remains at the heart of the service.

“It’s easy to quantify response to Applevision — it’s very direct,” Siverling points out.

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