Aug. 13 (Bloomberg) -- That four-minute wait to fill up the gas tank is a prime opportunity for advertisers to reach out to a captive audience.
That’s why payment technology company VeriFone Systems Inc. is working with gas-pump provider Gilbarco Veeder-Root to get more video screens in front of customers while they’re trapped at the pump, waiting to fill up.
The deal is part of VeriFone’s strategy to expand into services and beyond card-payment hardware. The company also shows video in convenience stores and in taxi cabs in cities like New York, offering advertisers a way to reach consumers in new places and to spur purchases.
Since Gilbarco is one of the leaders in the fuel-dispenser market, the partnership lets VeriFone expand its advertising audience almost fivefold to 95 million gas-station customers, the San Jose, California-based company said. Gilbarco and VeriFone will collaborate on designing technology for payments and for delivering ads and entertainment, and Gilbarco will incorporate it in the equipment it sells to filling stations.
“We have a four-minute opportunity to entertain and advertise to the consumer at a point where they’ve not been engaged before,” said Jay Parsons, senior vice president for global media at VeriFone, in reference to the average time it takes a customer to refuel. “You pull in at a fueling station, and Pepsi is on sale for $2.50 -- no one advertised that before.”
As part of the deal, VeriFone and Greensboro, North Carolina-based Gilbarco, a unit of Danaher Corp., will combine their gas-station advertising networks. The companies estimate that the combined media business will reach 115 million consumers a month through the 50,000 screens they have placed in taxis, gas pumps and convenience stores around the world.
Beyond advertising promotions aimed at influencing purchasing at gas stations, VeriFone’s media platform includes local news, weather, traffic and public-service messages, the company said in its annual report.
VeriFone shares rose 2.5 percent to $33.93 at the close in New York.
(In an earlier version of this story, the company corrected the size of its advertising audience in the fourth paragraph.)
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