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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
Self Financed / Branding
Financed Through Advertising /Advertising Only
Mixed / Hybrid
Self Financed / Branding
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
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 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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10Note: 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 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
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