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The Future of Digital Signage in Retail and Public EnvironmentsAdrian J Cotterill

Interim Executive and Industry Analyst Specialising in Digital Out of Home and Web 2.0

Editor of the "Digital Out of Home Advertising Networks” directory currently published by The Screen

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Definition of Digital Signage

“A network of displays that can be remotely managed and whose business model revolves around merchandising or advertising”

Source: Frost & Sullivan

Also Known As / Seen As

Digital Out of Home In-Store TV Digital Screen Media Captive Audience Networks Retail Media Networks Screen Networks Narrowcasting Place Based Media Digital Street Furniture Video-enhanced Shopping

Carts etc.

Network Types

Self Financed / Branding

Financed Through Advertising / Advertising Only

Mixed / Hybrid

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Network Types

Self Financed / Branding

Financed Through Advertising / Advertising Only

Mixed / Hybrid

Self Financed / Branding

Typically Retailers (especially Retail Banks) etc.

Often started life as ‘music’ networks

Network used for music video, product marketing, own-branding, wayfinding etc

Examples; Nike, Harrods, Footlocker, IKEA, Jyske Bank, National Lotteries, various Airports

Financed Through Advertising / Advertising Only

Typically the specialty of (new) third party businesses such as Avanti Screenmedia, LibriumTV, MDM.tv, Neo Advertising, POSTV, etc

Networks like the “Pharmacy Channel(s)’ across Europe bring together niche retailers (very successfully)

Mixed / Hybrid

Thomson Travel Poster Network, jointly ‘owned’ by retailer and advertising network ‘wannabe’

Retailers and Retail Banks may go ‘hybrid’ if they can be convinced of ‘brand-fit’

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3 1 High Street

Grocery

Malls and ServiceStationsPetrol Forecourts

ATMs

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5

2General Outdoor

Destination Venues

Mobile

Stadiums /Exhibition Halls

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30

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High ImpactRetailCaptive Audience

High ImpactUK Market - Mid 2007

Retail

Based on number of venues Based on number of venues

Based on number of venues

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4

2

1

510

LeisureTransportHair SalonsWaiting RoomsQSRHealth Clubs

Captive Audience

Based on number of venues

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Pub, Club, Bars

Shopping Malls

Corporate Offices

Outdoor ‘High Impact’

Billboards

Hotel Rooms and Lobbies

Stadiums

University, College, School

Corporate Reception Areas

Theme Parks

Race Tracks

Grocers

Real Estate Classifications

Advertising Classifications

Mobile Vans

Mobile / Portable Screens

Highway Signs

Airports

Railway Stations

Taxis, Trams, BusesHigh Street Retailers

Control Rooms

Financial Exchanges Film Sets, TV Backdrops

Retail Banks

Petrol Stations

Hair Salons

Government Buildings

Hospital, Waiting Rooms, Surgeries

Casinos

Studios

Restaurants

Rental / Staging

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Cost Reduction of POS (print and delivery) Instant customer “message - action“ Brand Enhancement; adds another dimension to

customer experience during visit Time of day content targets specific types of

customer (propensity to purchase) Centrally controlled campaign management tools Brand relevant “feel good’ editorial content Third party brand partnership activity (media

revenue)

Benefits of Digital Signage

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Tesco - Then and Now

TescoTV Initially Advertising Driven

model (JC Decaux chosen to sell advertising space as if it were a billboard)

Instrumental Media and Applied Television Group won contract to manage network

Scala Software and Hughes Satellite Connectivity

Common belief that wait-and-see attitude from other Grocers slowed down digital signage adoption by others across Europe

Allegedly cost £30 Million to rollout to 100 stores

TescoScreens Managed now by Dunnhumby Focus on Trade Marketing Example £5k for 2 x 5

second slots in every 5 minute loop

RFP for technology, network, solutions etc. out shortly

Now a “Self-Financed” model though Dunnhumby not averse to bringing in 3rd party media sales revenue when ready (i.e will become a mixed / hybrid model)

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Why It’s not TV According to a draft study by Deloitte from

the Grocery Manufacturers Association, the investment in in-store advertising has doubled since 2004 and is on pace for compound annual growth of 21% through 2010.

Conventional wisdom, backed by solid if not conclusive research, says that more than 70% of purchase decisions are made in-store. Yet despite that, in-store advertising still represents only 6% of marketing budget allocations, according to Deloitte

Marketing purists blame this anomaly on the lack of analytical data proving the efficacy of advertising at point-of-purchase. But how "proven" is traditional TV/radio/print, which still commands 35% of marketing budgets?

It's indisputably intuitive that a message delivered at point-of-purchase has the best chance to influence the desired behavior - getting the consumer to take the product off the shelf.

The latest and most expensive trend has been video screens along the store perimeter, at checkout, even in some aisles. A step forward, perhaps, but out-of-step with shopper behavior: Mass merchandise and supermarket consumers go shopping to shop, not to stop and be entertained

Shoppers are conditioned to move

through stores, not to stop, look and listen.

Marc E. Babej and Tim Pollak are partners at Reason Inc., a marketing-strategy consulting firm that works with clients in a range of categories, including media and entertainment, financial and professional services, packaged goods and the public sector

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“IT'S NOT TV” People don't watch like they watch TV….

… I don't even use the term In-Store TV anymore because of the Connotations. Comparing traditional Mass Media with Digital Signage is like comparing a Greyhound Bus with a sports car.

The Idea of ”Captive Audience" is a myth. If that were true, increased traffic would have to mean increased viewer ship. I can show that times of peak traffic are often NOT times of peak engagement. many times the exact opposite is true.

Steve Yetsko, Director of Media Research Services at VideoMining Corp.

Think “Poster+” rather than “TV minus”

Don SperringGroup Strategy DirectorJC Decaux

“It strikes me that (this) … makes your screen look MORE like TV … which is fundamentally where you don’t want to be because your audience is not in a TV receptive place when they are encountering your screens”

Alex HughesCreative DirectorAmigo Digital

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Note: Poor graphic quality due to Screen Shot

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Success…

A Clear Strategy and Vision

Customer retail psychology Marketing communications Video graphic design Technology - AV/IT

What Happens if the Vision is Not Thought Through?

Screens in the wrong places Content may be inappropriate

for the retail locations Channel not a commercial

success

Screen Layout in Relation to Customer Purchasing Pattern

Where should the screens be placed?

How many screens? What size?

Screen Content

What content should go on screens?

What’s the eye-on-screen dwell time?

How long should content segments be?

How should it be day-parted? What is the wear-out time?

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Brand Content Mandates1. Engaging - you can’t look away

2. Aware of the context - talk to me as if you are here

3. Compelling - you still can’t look away

4. Informative - tell me something I didn’t know until now

5. Containing a clear call to action - what do I do next?

6. Able to improve brand awareness - did the content make an impression?

http://screenvox.com/

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Dagobert’s 10 Rules of Content1. Define your own magical triangle between promotion, entertainment and

brand experience

2. Adopt a leading theme

3. Never forget that it is a furtive media

4. Open a dialogue with the customer

5. Create Interactivity

6. Structure the content with a single graphic code or by introducingheterogeneous content with short jingles

7. Be explicit at any stage of the program

8. Create an efficient sequencing

9. Preserve yourself from text overloading

10. To promote an event, create a ‘cluster’ of animations

http://www.dagobert.fr/

Definitions of furtive on the Web: -

Marked by quiet and caution and secrecy; taking pains to avoid being observed; "a furtive manner";

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Industry Problem

Content Delivery (is it Guaranteed?)Compliance for Digital Signage and Screen Networks

Relevance with regard customer habits, buying patterns, stock levels, time of day etc.

Most customers (Brands) need a Geographic Reach* not just local (country-specific) implementations

*For example across EMEA

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Customer Problem

You have Screens1, but can you guarantee… that they are turned on? that they are playing relevant content?

You have Content2 but can you… target your customers by time of day or week or make seasonal variations?

sell what you have, not what you think you have? sell more of what's selling not what's not selling?

1 JML for example; typically 20-25% are off at anyone time AND there is probably an equal number playing wrong (irrelevant) content versus what is in stock

2 European Research studies have shown that digital marketing and advertising consistently; shrink wastage, quickens turnaround for promotion to venue, decreases printed POS in-venue clutter, gives the ability to communicate multiple messages from one ‘poster’ site AND offers the possibility of 3rd Party Advertising / Media Revenue (if desired)

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Compliance - True ExampleTotal Network A Network B Network C

Any POS in Venue 58% 49% 69% 56%

Participating in Promotion1 59% 60% 64% 54%

Gave Gamecard without Prompting 25% 23% 36% 16%

Posters in Window 8% 6% 13% 6%

Posters in Venue 34% 30% 38% 35%

Show cards in Venue 41% 38% 47% 38%

Leaflets 4% 4% 3% 5%

On-Screen Promotion 36% 26% 57% 26%

Overall Display 24% 24% 26% 23%1: This statistic is compiled from the number of venues that gave gamecard right away, number of venues that gave gamecard after asking and number of venues that had run out of gamecards.

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Content Delivery Roadmap

Note: Poor graphic quality due to Screen Shot

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Number of screens: 1,015Number of venues: 203Footfall: 1.4 million till transactions per week Dwell time: 4.5 minutesFrequency of visit: 3.6 visits per week

DOOHAN, SparTV Entry, May 2007

iCapture - Accurately captures, tracks and analyses faces in video images, generating real-time audience data

iTally - Embedded people counting device with built-in overhead camera, i.e Gross Footfall

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Why Will Digital Out of Home Be Successful?

Audience

Immediacy

Selling by day part

Uniqueness

Editorial Content

Interaction

Creativity

Challenges to success

Accountability and Effectiveness

Creativity - the right treatment for the right screens

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The Screen is the Out of Home digital signage industry association. It is based in London, with members in the UK, France, India, Israel, South Africa and the USA

http://www.thescreen.org/

The DailyDOOH blog brings you Digital Out of Home Industry Analysis in Europe, Middle East and Africa

acotterill@dailydooh.com

http://www.linkedin.com/in/aideycot

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This Motion-activated (Flash-driven) interactive wall mural was in London’s Virgin Megastore at Piccadilly Circus for the last 4 weeks (it came down on Sunday so if you didn’t see it in person then you have missed it).

The 20′x8′ wall, project managed by the folks at PosterScope’s Hyperspace division showcases Adobe Creative Suite 3’s library of effects, including Illustrator, Photoshop, After Effects, and Flash.

The murals are designed so that when a person walks from left to right more animations are triggered and the density of the imagery increases.

It’s quite a clever way to do interactivity and I am sure will be repeated elsewhere (this Adobe creative was previously in New York). Interactive View and Obscura Digital (from the US) used an edgeless plasma wall (MPDP panels) to create the large window display and the Flash content respectively. I think there is a reason why all of the publicity shots were taken in the dark (in my opinion it does not look as good when in direct sunlight)

http://www.interactiveview.co.uk

http://www.obscuradigital.com/

DailyDOOH 26th August 2007

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Music - Legalities (UK Example)

Phonographic Performance Limited PPL is a music industry organisationcollecting and

distributing airplay and public performance royalties in the UK on behalf of over 3,500 record companies and 40,000 performers

http://www.ppluk.com/ Video Performance Limited

VPL is the collecting society set up by the record industry in 1984 to grant licences to users of music videos, eg. broadcasters, programme-makers, video jukebox system suppliers

http://www.vpluk.com MCPS

The MCPS-PRS Alliance is th home of the world's best songwriters, composers and music publishers

http://www.mcps-prs-alliance.co.uk