Success with advertising on automated teller machines

Sweden's independent ATM deployer Kontanten

Paderborn, (PresseBox) - Automated teller machines are ideal as a medium for direct, personalized product and service advertisements that target individual customers. Kontanten, Sweden's leading independent ATM operator, deploys a software package that provides direct marketing and third-party advertising functions on its self-service systems. As a result, Kontanten generates additional revenue with third-party ads and, at the same time, increases usage of its ATM base.

Kontanten is one of the most intensive users of this technology, with more than 250 ATMs already running Wincor Nixdorf's ProSales Marketing software. In November 2007, Kontanten launched an offer that gives businesses and service providers an advertising platform on its ATM network. Since then, newspaper publishers, mobile carriers and service station operators, banks and retail enterprises have already taken advantage of the offer and regard it as successful. To publicize its own portfolio, Kontanten joined forces with a radio station to advertise its own cash service via its ATM network. System usage varies with location - between 300 and 800 withdrawals each day - with the transaction volume and hence the number of advertising contacts steadily rising.

Kontanten offers its customers two different advertising types. They can display graphically designed messages, normally video clips or animations, either during idle time or during the 15-second phase reserved for bank card and PIN authorization, the so called transaction time. "Individual ads will normally be displayed for five seconds - long enough to be perceived by consumers, but not long enough for users to find them boring or disruptive," Patrik Severgardh, Marketing Director at Kontanten, reports on the bank's experiences to date. He also stressed another interesting feature of this local advertising format, namely the option of disseminating campaigns either on a single ATM, a group of systems or via the entire network.

Since the beginning of the year, Kontanten has billed customers for advertising services on the basis of a cost-per-thousand (CPT) price model - in the same way as a media company - and now plans to commission independent market researchers to measure their success. "Several retailers have confirmed that sales of the products we advertise have risen by 10 to 20 percent in the retail stores depending on products or services," Severgardh says. Kontanten launched its first personalized campaigns in May of this year. One example is Maestro cardholders, a group consisting largely of younger consumers in Sweden. They now receive offers created especially for them.

ProSales Marketing enables companies to address their customers directly on self-service systems. Graphically designed advertising messages can be distributed quickly and easily to ATMs or transaction terminals. The fact that they are only displayed during brief wait times when customers are not distracted by other media guarantees that ads get maximum attention. ProSales Marketing is easily integrated into existing customer relationship management (CRM) solutions via open interfaces. This paves the way for functions such as personalized advertising and product offers. Other options for interactive processes on self-service systems include appointment-making and the administration of surveys.

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