The Future of Digital Signage in Retail and Public Environments

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The Future of Digital Signage in Retail and
Public Environments

• Adrian 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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High Impact
UK Market - Mid 2007
Based on number of venues
Based on number of venues
Retail
Captive Audience
Based on number of venues
Based on number of venues
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Real Estate Classifications
Control Rooms
Corporate Offices
University, College, School
Rental / Staging
Studios
Financial Exchanges
Film Sets, TV Backdrops
Highway Signs
Theme Parks
Government Buildings
Race Tracks
Retail Banks
Casinos
Corporate Reception Areas
Hotel Rooms and Lobbies
Airports
Shopping Malls
Stadiums
Pub, Club, Bars
Restaurants
Railway Stations
Mobile Vans
High Street Retailers
Taxis, Trams, Buses
Outdoor High Impact Billboards
Petrol Stations
Grocers
Hair Salons
Hospital, Waiting Rooms, Surgeries
Mobile / Portable Screens
Advertising Classifications
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Benefits of Digital Signage

• 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)

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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 Its 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.
It strikes me that (this) makes your screen
look MORE like TV which is fundamentally where
you dont want to be because your audience is not
in a TV receptive place when they are
encountering your screens Alex Hughes Creative
Director Amigo Digital
Think Poster rather than TV minus Don
Sperring Group Strategy Director JC Decaux
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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?
• Whats 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 Mandates

1. Engaging - you cant look away
2. Aware of the context - talk to me as if you are
   here
3. Compelling - you still cant look away
4. Informative - tell me something I didnt 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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Dagoberts 10 Rules of Content

1. 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 introducing?heterogeneous 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

Definitions of furtive on the Web - Marked by
quiet and caution and secrecy taking pains to
avoid being observed "a furtive manner"
http//www.dagobert.fr/
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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 Example
Total 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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• 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

Number of screens 1,015 Number of
venues 203 Footfall 1.4 million till
transactions per week Dwell time 4.5
minutes Frequency of visit 3.6 visits per week
DOOHAN, SparTV Entry, May 2007
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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 DailyDOOH blog brings you Digital Out of Home
  Industry Analysis in Europe, Middle East and
  Africa

acotterill_at_dailydooh.com http//www.linkedi
n.com/in/aideycot

• 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/

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DailyDOOH 26th August 2007
This Motion-activated (Flash-driven) interactive
wall mural was in Londons Virgin Megastore at
Piccadilly Circus for the last 4 weeks (it came
down on Sunday so if you didnt see it in person
then you have missed it). The 20'x8' wall,
project managed by the folks at PosterScopes
Hyperspace division showcases Adobe Creative
Suite 3s 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. Its 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.inter
activeview.co.uk http//www.obscuradigital.com/
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Music - Legalities (UK Example)

• Phonographic Performance Limited
• PPL is a music industry organisation?collecting
  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