the future of digital signage abridged

8/7/2019 The Future of Digital Signage Abridged

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DailyDOOH

http://www.dailydooh.com/

The Future of Digital

Signage in Retail andPublic Environments

Adrian J Cotterill

Interim Executive and Industry Analyst Specialising inDigital Out of Home and Web 2.0

Editor of the "Digital Out of Home Advertising Networksdirectory currently published by The Screen


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Definition of Digital Signage

A network of displays that can beremotely managed and whosebusiness model revolves aroundmerchandising 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



Mixed / Hybrid


Typically Retailers (especiallyRetail Banks) etc.

Often started life as musicnetworks

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

wayfinding etc Examples; Nike, Harrods,

Footlocker, IKEA, Jyske Bank,National Lotteries, various Airports


Typically the specialty of (new)third party businesses such as

Avanti Screenmedia, LibriumTV,MDM.tv, Neo Advertising, POSTV,etc

Networks like the PharmacyChannel(s) across Europe bringtogether niche retailers (verysuccessfully)

Mixed / Hybrid

Thomson Travel Poster Network,jointly owned by retailer andadvertising network wannabe

Retailers and Retail Banks may gohybrid if they can be convincedof brand-fit


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7

8

31

High Street

Grocery

Malls and ServiceStations

Petrol Forecourts

ATMs

7

6

5

2

General Outdoor

Destination Venues

Mobile

Stadiums /Exhibition Halls

20

30

28

High Impact

Retail

Captive Audience

High ImpactUK Market - Mid 2007

Retail

Based on number of venues Based on number of venues

Based on number of venues

6

4

2

1

510

Leisure

TransportHair Salons

Waiting Rooms

QSR

Health Clubs

Captive Audience

Based on number of venues


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Pub, Club, Bars

Shopping Malls

Corporate Offices

Outdoor HighImpact

Billboards

Hotel Rooms and Lobbies

Stadiums

University, College, School

Corporate ReceptionAreas

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, WaitingRooms, 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 customerexperience during visit

Time of day content targets specific types of customer (propensityto 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 advertisingspace as if it were a billboard)

Instrumental Media and AppliedTelevision Group won contract tomanage network

Scala Software and Hughes SatelliteConnectivity

Common belief that wait-and-seeattitude from other Grocers sloweddown digital signage adoption byothers across Europe

Allegedly cost 30 Million to rollout to100 stores

TescoScreens Managed now by Dunnhumby

Focus on Trade Marketing

Example 5k for 2 x 5 secondslots in every 5 minute loop

RFP for technology, network,solutions etc. out shortly

Now a Self-Financed modelthough Dunnhumby not averse to

bringing in 3rd party media salesrevenue when ready (i.e willbecome a mixed / hybrid model)


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Why Its not

TV

According to a draft study by Deloitte from theGrocery Manufacturers Association, the investmentin in-store advertising has doubled since 2004 andis on pace for compound annual growth of 21%through 2010.

Conventional wisdom, backed by solid if notconclusive research, says that more than 70% ofpurchase decisions are made in-store. Yet despitethat, in-store advertising still represents only 6% ofmarketing budget allocations, according to Deloitte

Marketing purists blame this anomaly on the lack ofanalytical data proving the efficacy of advertising atpoint-of-purchase. But how "proven" is traditional

TV/radio/print, which still commands 35% ofmarketing budgets?

It's indisputably intuitive that a message deliveredat point-of-purchase has the best chance toinfluence the desired behavior - getting theconsumer to take the product off the shelf.

The latest and most expensive trend has beenvideo screens along the store perimeter, atcheckout, even in some aisles. A stepforward, perhaps, but out-of-step withshopper 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 atReason Inc., a marketing-strategy consulting firmthat works with clients in a range of categories,

including media and entertainment, financial andprofessional services, packaged goods and thepublic sector


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IT'SNOTTVPeople don'twatch like they watchTV.

I don'teven use the term In-Store TVanymore because oftheConnotations. Comparingtraditional MassMedia withDigitalSignage islike comparinga Greyhound Bus withasportscar.

The IdeaofCaptive Audience" isamyth. Ifthatwere true, increasedtrafficwouldhave tomeanincreasedviewership. Icanshowthattimesofpeaktrafficare often NOTtimesofpeak engagement. manytimesthe exactopposite istrue.

Steve Yetsko, DirectorofMedia ResearchServicesatVideoMiningCorp.

ThinkPoster+ratherthanTVminus

DonSperringGroupStrategyDirectorJCDecaux

Itstrikesme that (this)makesyourscreenlookMORElike TVwhichisfundamentallywhere youdontwanttobe because youraudience isnotinaTVreceptive place

whentheyare encounteringyourscreens

Alex HughesCreative DirectorAmigoDigital


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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 NotThought Through?

Screens in the wrong places

Content may be inappropriate for the

retail locations Channel not a commercial success

Screen Layout in Relation toCustomer 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 Mandates1. Engaging - you cant look away

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

3. Compelling - you still cant look away4. 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 contentmake an impression?

http://screenvox.com/


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Dagoberts 10 Rules of Content

1. Define your own magical triangle between promotion, entertainment andbrand 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 byintroducingheterogeneous 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 offurtive on the Web: -

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


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Industry ProblemContent 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 aGeographic Reach* not just local (country-specific) implementations

*For example across EMEA


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Customer ProblemYou 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, quickensturnaround 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 inPromotion1 59% 60% 64% 54%

Gave Gamecardwithout 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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Nu er of screens: 1,015

Nu er of venues: 203

Footfall: 1.4 million till transactions per weekwell ti e: 4.5 minutes

Frequency of visit: 3.6 visits per week

DOOHAN, SparTV Entry, May 2007

iCapture - Accurately captures,tracks and analyses faces in videoimages, generating real-timeaudience data

iTally - Embedded peoplecounting device with built-inoverhead camera, i.e GrossFootfall


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WhyWill Digital Out of Home Be Successful?

Audience

Immediacy

Selling by day part

Uniqueness

Editorial Content

Interaction

Creativity

Challenges to success

Accountability andEffectiveness

Creativity - the righttreatment for the rightscreens


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The Screen is the Out of Home digital

signage industry association. It isbased in London, with members in theUK, France, India, Israel, South Africaand the USA

http://www.thescreen.org/

The DailyDOOH blog brings you Digital Outof Home Industry Analysis in Europe, Middle

East and Africa

[email protected]

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


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ThisMotion-activated (Flash-driven)interactive wallmuralwasinLondonsVirginMegastore atPiccadillyCircusforthe last4 weeks(itcame downonSundaysoifyoudidntsee itinpersonthenyouhave missedit).

The 20x8 wall,projectmanagedbythe folksatPosterScopes Hyperspace division

showcasesAdobe Creative Suite 3slibraryofeffects,includingIllustrator,Photoshop,AfterEffects,andFlash.

The muralsare designedsothatwhenapersonwalksfromlefttorightmore animationsare triggeredandthe densityofthe imageryincreases.

Itsquite acleverwaytodointeractivityandIamsure willbe repeatedelsewhere (thisAdobe creative waspreviouslyinNewYork). Interactive ViewandObscuraDigital(fromthe US)usedanedgelessplasmawall(MPDPpanels)tocreate the large windowdisplay

andthe Flashcontentrespectively. Ithinkthere isareasonwhyallofthe publicityshotswere takeninthe dark(inmyopinionitdoesnotlookasgoodwhenindirectsunlight)

http://www.interactiveview.co.uk

http://www.obscuradigital.com/

DailyDOOH26th August 2007


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Music - Legalities (UK Example) Phonographic Performance Limited

PPL is a music industry organisationcollecting and distributing airplay and publicperformance royalties in the UK on behalf of over 3,500 record companies and40,000 performers

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

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

http://www.vpluk.com

MCPS

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

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

the future of digital signage abridged

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