Friday, September 29, 2006

Digital Signage: Information for A/V contractors

The world of digital signage and Audi/Visual are so close sometimes it is scary. But even scarier is the miscommunication that can occur between solution vendors and the Audio/Video professional managing the actual implementation.

I don't think any A/V contractor would deny the opportunity that digital signage presents. In an age of declining equipment margins, the Audio/Visual world is more than happy to see another layered service which will fuel equipment sales and augment monthly service contracts. On paper, everything looks great.

In reality, there continues to be a void between an equipment solution and the fully managed digital signage solution which includes not only equipment but content creation, media asset management and software scheduling . Unlike a traditional A/V installation, the real work in a digital signage project starts AFTER the equipment is in place.

Below is a link from an article I came across at Canadian Technology News which does a great job of describing the digital signage market as it sits today as well as where it is projected to go over the next several years. This is a great article for A/V dealers and professionals to read because it speaks to channel partners rather than end users.

Thursday, September 28, 2006

Digital Signage: Nielsen completes measurement study

In the marketing world one of the age old challenges is measuring impact. Whether it is managing a network spot purchase or scheduling media to a network of digital displays, the impact can sometimes lie within the gray area. As a consequence, it is no suprise that one of the most often asked questions I hear is "Do you have statistics to back up digital signage?".

The answer to that question is of course yes. With hundreds of our Codigo systems installed across the US and abroad, we have done many studies in many different verticals. We do know that now just our system but digital signage in general can do wonders to boost sales and brand recognition when done right. Now comes the tricky part. Nearly all of the statistics we offer our customers as proof of impact are studies we have done and not a removed third party.

It is for this reason I am so pleased to see Neilsen get involved in measuring the impact of digital signage. I can only hope that we see more studies done by independent houses such as Neilsen and Arbitron over the coming months and years.

Below is a recent article from aka.tv which describes the Neilsen study.




Two Thirds Of Shoppers
Influenced By In-Store
Networks, Says Nielsen


Nielsen Media Research is finding out that digital signage does influence consumer behaviour.
The researcher – a prominent player in the measurement and assessment of traditional advertising, to which many agencies and ad-buyers look for media justification – recently conducted an examination of in-store media, specifically in the grocery sector.

In its first customized analysis of supermarket data as it relates to digital signage, Nielsen studied shoppers at Albertson’s and Pathmark, two U.S. grocery chains that utilize digital-signage technologies from SignStorey.

The researcher found that 68 percent of those surveyed said in-store messages would help sway their product-purchasing decisions. A further 44 percent said they would switch a product they previously intended to buy for one advertised.

Overall awareness of the in-store networks was close to 40 percent – a figure which included those who briefly glanced at the screens, as well as those who listened to messages or watched intently.

Many in the digital-signage business have called for formal studies such as Nielsen’s to provide the advertising community with the necessary metrics to determine the effectiveness of in-store digital networks.

Don Graves aka.tv staff

Wednesday, September 27, 2006

Digital Signage: When will Technology and Media truly converge?

I came across an interesting article today from the folks over at signindustry.com entitled Digital Signage and Brand Building. The intriguing aspect of this article was Lynn's comments about the new found convergence of knowledge among both the tech folks that design and build the software that runs these great systems and the media people who use them day to day. Traditionally, digital signage companies have been primarily composed of people heavy on technology and light on application. This is in all actuality why I started my company 4 years ago.

This next part is not meant to be a shameless plug, it is simply true. Until recently we felt as if we were one of the few vendors in the industry to have a strong understanding of both media and software. Although I am reluctant to start relinquishing our claim to fame, Lynn points out that more and more digital signage companies are starting to hire the talent needed to truly understand the media mindset. I am pleased to see other companies start to put more weight on media. Ultimately this convergence will help fuel the ever growing rate of adoption for digital signage.

I hope you enjoy the article. Check back soon!



Digital Signage, sometimes called In-store TV or Digital Display Networks, is of critical importance to brand managers and retailers because of the new capabilities it brings to branding, their success and to the definition of their relationships with retailers and markets.

Digital Signage, sometimes called In-store TV or Digital Display Networks, is of critical importance to brand managers and retailers because of the new capabilities it brings to branding, their success and to the definition of their relationships with retailers and markets.
Branding and merchandising and other information in video, text or animation can be presented on electronic displays that might include multiple regions, each controlled by playlists that can present different content files every few seconds if need be. Digital Signage is not just a new “better than static signage” display capability that exploits the inherent economies and flexibility of “digital”, but is a dramatic shift in the business communications that underpins retailing.

It’s all in the branding

To brand is to gain a favored position with consumers for a product, service, experience or organization. Branding is to create revenues that are sustainable with positioning for greater growth at contained costs.

Not only can dominant brands stay in that position, but any advertising in the brand’s category supports the brand leader.

That is, unless the sale is made by a challenger. In-store profile offers an immediate opportunity to motivate the sale, and create a new customer in the best way that brand management can persuade.

This new “on-location” alternative display medium, presents a significant threat and opportunity to brand management because it is “outside-the box”. It changes display processes, improves display location and reduces the entry level of investment for consumer branding and sales activation spending. It heralds an enormous change in marketing communications ­ a paradigm shift, or what the Harvard Business Review called a Blue Ocean Strategy in an October 2004 article.

Digital signage has emerged as an integration of technologies in response to the business need for lower cost, more reliable, more flexible, more cost-effective marketing communications. Early providers of digital signage (though this is changing) are not the people who deeply understand “audience”, “consumers” and “categories”, as brand managers do; but are those who can bring enabling tools that better business processes. It is a sharper tool for the hands of capable marketers.

Enabling technologies take hold when the value in using them exceeds their cost, and when the capabilities, cost and availability of component technologies can be effectively integrated. Digital signage has been at this point for several years, the greatest impact being the ongoing reduction in the cost of electronic displays. Digital signage is in the “killer app” category. It is a proposition so compelling that it heralds a widespread shift in business processes, supply chains, partner collaborations and the speed of transactions.

Leverage of technology

Technology advances have reduced the costs and improved the effectiveness of communications. This has occurred as the pace and critical nature of training, education, merchandising, branding and stakeholder communication have increased, and the need for investment effectiveness (ROI), and return on communications effort (ROCE) are under growing pressure. With its dynamic content, controlled playlists and day-parting, digital signage enables message targeting to preferred demographics at the point of choice, of consumption, where and while consumers shop ­ at the “moment of truth”.
As such, Digital Signage approaches consumer communications differently ­ much closer to a retailer’s way of thinking than that of brand thinkers, which interestingly is where brand thinkers try hard to be.

Successful brand managers stay very close to retailers. The partnership is essential to the brand because of the growing power of the retail location provider to impact the success of the brand.
In-store Digital Signage is like jet engines for retailers. When shelf space is allotted and stocked, and customers are in-store, digital display generates sales, increases basket size, improves the shopping experience and deepens the retailer’s relationship with the customer.

But the “moment of truth” is of greatest importance to the brand. It is the last three feet of the marketing plan, the point at which all planning, production, distribution and marketing dollars have been spent. At the moment of truth, revenue is achieved and a customer gained, or not. This moment of truth merits investment above all.

Digital Signage focuses on revenue acceleration in the retail environment using digital technology. So the management of organizations who make their money from consumer spending such as retailers, brand managers, ad agencies, marketing service providers, franchise and chain store operators, must look carefully at the competitive impact of Digital Signage. It will work for them or against them ­ it is not neutral.

The great rewards are realized when all disciplines gather around the opportunity together ­ including brands, creative, display owners, location providers, research, ad sales and technology providers. Because digital signage does something new, that is delivering dynamic images to the at-shopping experience, traditional approaches to creative, display, measurement and pricing are not adequate.

Communicating

The communications areas of marketing display, staff training and business collaboration have generally developed independent of each other (from both organizational and objective standpoints). But the common characteristics of these business communications applications are that:

1- Content originates from a single location.
2- This content is delivered to many (all) locations.
3- The minimizing of cost related to the downlink is very important in containing ongoing operating cost.
4- The communication is primarily display based, and can include an instructor or a spokesperson, as well as visuals such as video, static or animated graphics.
5- The content should compel a behavior. Whether training, education or merchandising, the intention is to motivate a behavior in the interest of the organization.

Digital Signage infrastructure can also be used for sponsored event private broadcast, instruction, staff training, subject-focus edutainment and business collaboration, therein providing multiple contributions to the development of the brand.

The customer experience and their relationship with both the brand and the shopping experience change when digital signage infrastructure is used for other communicating.
So long as there is production overcapacity and market opportunity, marketing that is cost-effective in achieving branding and merchandising goals is attractive, if not essential.
Patrons and staff can be trained through sponsored events and distance education. Customers can be acknowledged and entertained through private in-store broadcast. Locations and personnel can be merchandised and the distance between suppliers, management and staff can be reduced through business television.

Reaching people is the new domain of digital signage in supporting brand building.

Lyle Bunn is BTV+ Director, Digital Signage and Rich Media. He has published over 25 articles and Whitepapers on Digital Signage, presents at all primary Digital Signage events and is formerly Chair of the Education Committee, POPAI North America Digital Signage working group. . lbunn@canbtv.com

Tuesday, September 26, 2006

Back in the Game

Captive Indoor Media has been humming along at an incredible clip the last few months and suffice it to say that I have completely neglected our blog. For those of you who do frequent our site for information, I apologize and promise a new found conviction for updating our blog on a consistent basis.

In the spirit of the above statement, I am going to start doing more to not only author articles on what I see taking place in the marketplace but to also post articles which are of value to our industry as a whole. One such article was recently published in Media Post and speaks to the broad acceptance digital signage is starting to enjoy.

For the last several years, digital signage has been at top of mind for many retailers but often the larger roll outs lagged behind and many of the RFP's never developed into full roll outs. I believe the 4th Quarter of 2006 will be the beggining of the true tipping point for digital signage and this article certainly backs that up.

Please enjoy the following article and be sure to check back soon. I will be posting as much as possible and at least once each week going forward.

Digital Ad Boom Shifting From Online To Out-Of-Home
by Joe Mandese, Tuesday, Sep 12, 2006 9:02 AM ET


THE HOTTEST FORM OF DIGITAL media on Madison Avenue isn't online. It's out-of-home. Digital out-of-home networks are popping up virtually everywhere: in stores, in theaters, in health clubs, in office buildings, and perhaps most importantly of all, on media planning flowcharts. The new networks, a subset of the outdoor media industry that is sometimes referred to as place-based television, are growing at a rate of about 10 new per month, according to a new report being released this week by marketing consultants Profitable Channels. The report estimates that the 700 digital out-of-home networks launched since 2002 will account for $1.2 billion in national ad spending this year, making it the size of a major network TV daypart.

"The 700 number is probably low," says Stephen Diorio, a partner at Profitable Channels, and the author of the report. "It's a lot like when all the dot.coms were coming out. Anyone with a venue and a good audience is launching something and calling it media."

In fact, digital out-of-home networks are popping up everywhere from high-rise elevators to gas station pumps to public rest rooms, creating new places and states of mind for marketers to reach their consumer and business prospects. The growth is being spurred by a combination of entrepreneurial zeal from venue operators looking to tap the fast-growing advertising sector, as well as from increasing demand form advertisers and agencies seeking alternatives to traditional media. Much of the growth is coming from retail-savvy marketers such as packaged goods companies seeking to get closer to where their consumers are making their purchase decisions, but it also is giving rise to new units within major ad agencies and media buying shops that have begun consolidating or integrating their out-of-home operations into new "shopper media" divisions.

"All the major agency networks - Interpublic, Omnicom, Publicis and WPP - have established within their network 'centers of excellence' that are equipped to deal with the unique nature of planning this media," notes Diorio.

One of the key drivers influencing the growth of the new networks is their ability to deliver conventional sight, sound and motion advertising that big TV advertisers have grown accustomed to, as well as their ability to deliver an extremely relevant message to consumers at a decisive moment in their purchase cycle.

"A gas station isn't going to be the right venue for every advertiser, but for certain types of products - oil additives, etc. - they can be super highly relevant," says Diorio, who interviewed more than 50 senior marketing and media executives while researching the 700 networks covered in the report.

"It is one of the smallest segments, but it is also one of the fastest growing segments," concurs Leo Kivijarv, vice president-research at Stamford, CT-based PQ Media, which is planning a similar report on digital out-of-home networks. "Anecdotally, what we've heard is there is a difficulty selling this stuff to advertisers the first time, but once people try digital out-of-home, they are re-upping at a very high rate because they are seeing a stronger ROI."

Kivijarv says PQ looks at the market slightly differently, grouping the new digital outdoor billboards being rolled out by companies such as Clear Channel and CBS Outdoor in with digital video networks. And unlike Profitable Channels, it does not include cinema advertising in the category. However, if cinema advertising was combined with PQ's estimates for digital out-of-home networks, Kivijarv calculated that the total market would be about $725 million.

Profitable Channels estimates that cinema advertising currently accounts for about half of the digital out-of-home market in the U.S., but that in-store networks such as In-Store Broadcasting Network (IBN), Premiere Retail Networks (PRN), and Sign Storey represent its fastest growth and greatest reach potential. While cinema advertising networks currently available in the top 40 markets, they only have the potential to reach 32 percent of the U.S. population. In-store networks are currently only available in the top 25 markets, but Diorio estimates they have the potential to reach 93 percent of the U.S. population, making it a broader reach medium than the burgeoning mobile marketing sector.

The rapid growth of digital out-of-home networks has even spawned its own trade association - the Out-of-Home Video Advertising Bureau, or OHVAB - which Diorio says is trying to bring some structure to the emerging marketplace the way the Interactive Advertising Bureau did for online advertising in the 1990s and the way the Cabletelevision Advertising Bureau did for cable TV in the 1980s.

"I think we're at the tipping point," says Diorio. "This is a market that is poised to explode."
While Profitable Channels doesn't forecast the advertising market potential, PQ Media has begun to calculate the market's future growth, projecting that in-store advertising networks are growing at an annual rate of about 45 percent, while other alternative forms of digital out-of-home networks - gas stations, convenience stores and unconventional locations such as rest rooms - are growing at a rate of 15.2 percent per year.

Joe Mandese is Editor of MediaPost.
Hyper Smash