Capturing Retail Media Network Growth in Local Television and Radio

The 1936 Robinson-Patman Act: A Catalyst for Local Retailer Success

The retail media network landscape, dominated by national giants like Amazon, Walmart, Target, Lowe's, and Albertsons, is on the verge of a significant shift. The next phase of growth will likely come from regional and local retailers, who are now gaining access to vendor support funds that were previously funneled predominantly to national chains. These funds, designed to support retailer-driven promotions, are being distributed more equitably, thanks in large part to the federal Robinson-Patman Act, which protects smaller and regional retailers from price and promotional discrimination.

This development presents a significant opportunity for local television and radio media outlets, which can provide regionally tailored advertising that is more effective than national strategies. By leveraging local media, regional retailers can access hyper-local audiences and optimize their promotional budgets with the same advantages previously enjoyed by their larger counterparts.

The Robinson-Patman Act of 1936 was enacted to prevent large buyers, like national retail chains, from receiving unfair advantages in pricing and promotions. The law ensures that manufacturers and suppliers must offer similar promotional allowances and pricing to all buyers under comparable circumstances. This protection is especially important for regional and local retailers, who may not have the same buying power as large chains but still require equitable access to vendor support funds.

The Robinson-Patman Act is a key driver of the shift in promotional and advertising budgets to regional and local retailers. As manufacturers and suppliers are required by law to offer proportionate discounts, promotional allowances, and advertising support to smaller retailers, it is poised to catalyze the flow of marketing dollars into local markets. This shift provides local media outlets with a valuable opportunity to capture a larger share of these advertising budgets.

The CBS F.I.R.S.T. Program: A Model for Success

The CBS F.I.R.S.T. (Framework for Insuring Retail Success with Television) program, launched at WCBS-TV in the 1970s and 1980s, capitalized on the foundations established by the Robinson-Patman Act. By ensuring that regional and local retailers could access the same media strategies as national players, the program enabled smaller retailers to use television advertising effectively. The program was designed to help regional retailers maximize their vendor support funds by providing:

• Custom media packages that aligned with their budgets and target audiences.

• Strategic advertising frameworks that demonstrated how to leverage local television to drive foot traffic and sales.

The success of the CBS F.I.R.S.T. program was rooted in the Robinson-Patman Act's protections, which ensured that regional retailers had access to the same promotional opportunities and media support that larger national chains enjoyed. This level playing field was a key reason why the program was so successful in driving local retail growth during its original implementation.

Why Local Television and Radio Are Primed for This Opportunity

A detailed opportunity to update and implement effective retail media network solutions at the local and regional level is outlined in the following section, available to subscribers to The Media Ecologist and The Myers Report (Full content is available at www.myersreports.com) The Media Ecologist is funded exclusively by your support and is truly appreciated. To confirm your support please subscribe with your free or paid commitment.

Today, local television and radio are uniquely positioned to take advantage of the growth of regional retail media networks, using the principles of the Robinson-Patman Act to ensure equal access to advertising resources. Here’s why:

1. Hyper-Local Targeting and Reach: Local TV and radio offer granular targeting that national media cannot. Regional retailers can reach local customers more effectively through community-driven content and advertising, creating deeper connections than national platforms.

2. Advanced Television Commerce Capabilities: The rise of Advanced Television technology offers new, direct-to-commerce opportunities for consumers. Technologies like WiOffer, used by Comcast and others, allow viewers to interact with ads by scanning QR-code-like capabilities directly on their screens, leading them to special offers, product pages, or retail sites. This innovation bridges the gap between advertising and immediate purchase, enabling retailers to connect directly with consumers via their TVs. Regional retailers can harness this technology to drive immediate sales or engagement, providing a direct return on their advertising investment through television, a traditionally indirect medium.

3. Trust and Credibility: Local media outlets enjoy a high degree of trust and engagement from their audiences, especially in smaller or mid-sized markets. This trust is valuable to regional retailers, who often depend on local customer loyalty to compete with larger chains.

4. Fair Access to Vendor Funds: Thanks to the Robinson-Patman Act, regional retailers are now better equipped to tap into vendor support funds. These funds, which once predominantly supported national retail chains, are now available in proportionate amounts to regional and local retailers. Local media companies are in an ideal position to help these retailers use those funds effectively by offering tailored advertising solutions. In the programmatic marketplace, key leaders are already aggregating regional and local retailers for a vendor support initiative. It’s in the interests of local TV and radio station groups to be fully aligned with these emerging programs.

5. Cross-Platform Integration: Major local media companies like Nexstar, Sinclair, and Audacy have expanded beyond traditional TV and radio to include robust digital advertising platforms. These cross-platform capabilities allow regional retailers to combine broadcast reach with digital precision, offering an advertising package that mirrors the retail media networks used by national chains, but with the added advantage of local focus.

Modernizing the CBS F.I.R.S.T. Program

A revived CBS F.I.R.S.T. program, implemented by aggressive national station groups such as Nexstar, Sinclair, Scripps, iHeart, or Audacy, would be well-suited to the current advertising landscape. This modern version would: