The Digital Sign Industry has recently achieved an important milestone with installations now in excess of one million screens. The falling cost of hardware and software along with the promise of new reach, has allowed the medium to grow at a considerable rate over the last number of years. The industry saw growth in excess of 25% in 2009 alone; recession? What recession? This growth has given rise to applications we would not have imagined even a few years ago. Today digital screens can be found in places such as subway cars, taxi cabs, gas pumps, elevators in addition to the usual suspects: waiting rooms, hotel lobbies, pubs, QSRs and of course retail environments.
The real growth driver going forward will be leveraging the mediums ability to deliver meaningful messages, relevant to the context (the activities audiences are engaged in at the time of interaction) in which screens are placed. Digital signage is entering a new phase where the excitement of the technology and program management capabilities are giving way to the real hero; relevant content. Success in creating content starts with an honest assessment of what role digital signage should play in the customer experience? The answer will vary considerably depending on context; one reason why digital signage is a unique and powerful medium in its own right.
One constant driver of success in the digital age is a mediums’ ability to engage its audience, regardless of venue. This is an increasingly difficult challenge in the media savvy world we live in today. What seems apparent is that as consumers of media, our tolerance for advertising diminishes the closer our proximity to the point of sale. We accept (although grudgingly) that watching our favourite TV programs come with the price of enduring ads that may or may not be relevant to us. We have become remarkably adept at blocking out what we perceive to be meaningless information. This skill extends to sorting through print and web media to find the stories that interest us as well as looking past all but the most engaging of outdoor ads. When it comes to circumstances that involve queues or waiting areas, you could say we actually welcome anything that reduces our perceived wait time. If on the other hand we are engaged in making a buying decision or focused on our shopping list, our tolerance for irrelevant “ad noise” disappears. A positive customer experience using digital signage is a matter of creating relevant messages that are useful and helpful to the viewer.
Keith Kelsen is seen by many as heading the charge to step up the quality of digital sign presentations. His goal is to better equip the industry responsible for creating and distributing digital signage content. Kelsen, CEO of The 5th Screen, has recently published a book on the topic named: Unleashing The Power of Digital Signage – Content Strategies For The 5th Screen. The 5th screen refers to the sequence moving from cinema, TV, computers, mobile phone to the digital sign. In the book, Kelsen taps the brain trust of leaders across this new and vibrant industry. Contributors draw from a wide range of digital signage network developers and operators who share their experience on best practices. The book focuses on content strategies for three key screen applications: Point of Transit, targeting people on the go, Point of Wait, focused on dwell time or queue based circumstances and Point of Sale (POS), the retail environment. Although technical at times, the book is a very worthwhile read for anyone involved in content creation and distribution.
I sat down with Kelsen at the recent Digital Sign Expo in Las Vegas to get his thoughts on the digital landscape and specifically the critical role of content. Kelsen asserts that digital signage is an important part of the communication grid but the technology is only the delivery mechanism. The content will determine its success or failure. He adds, it important to see digital signage as part of the overall communication strategy but content must stand alone while maintaining continuity to other mediums particularly the other four screens (cinema, TV, Computer and Mobile). Kelsen’s vision of the role content plays in digital signage is only part of the story. The big picture sees content as “transmedia” with the portability to allow shoppers in the market place to capture content and move it at will to where and when viewing suits them. Given where we are with mobile tagging (2D tags & Microsoft TAG) the future is not far off.
Where Are We Today?
Although it’s still early days for digital signage, Kelsen suggests that content creation has a market size of approximately $3.5 Billion while digital sign development, deployment and maintenance sits at $2.5 billion. Impressive given the industry practically didn’t exist ten years ago. Kelsen asserts that digital signage is an important link in the in an increasingly connected world. It represents the critical stage of connectedness to a wide range of media and platforms; a theme his book explores in some depth. My sense is Kelsen has got this right. Digital signage today has the potential to allow media content to move between our home and the public domain without losing relevance. If content creators focus on engagement across multiple platforms, customers are further empowered. We have witnessed many examples of remarkable adoption rates to new technology when the value to customers is clear. Whether it’s a digital screen message inviting shoppers to text for a discount coupon or touch screens giving access to relevant product information, the goal is to engage by making value or rewards apparent.
Growth at a Tipping Point
Kelsen believes in 2010 the digital signage industry is at a tipping point when it comes to growth. This is driven by a number of factors including; the continued shift among brands to alternative ad channels, massive deployment plans among network operators, and the conclusion of extensive testing in QSR formats. When you add an improving economic picture and lower cost barriers, it’s not difficult to see there’s reason to be upbeat.
Meeting the Challenge
In spite of the positive forecasts the industry faces a number of challenges. Another presenter at the Digital Sign Expo, Pierre Richer, President & CEO of NEC Display Solutions, uncovered a number of hurdles being faced by Place Based Media on DOOHN (Digital Out of Home Networks). Most of today’s hurdles revolve around the fact the industry is extremely fragmented. Here are some of the challenges the industry is working through:
- A lack of standardization of format
- No universal measurement for proof of performance widely in place
- No standard media distribution serving tool
- A lack of visibility of network inventory
From a customer experience stand point these issues result in sub standard or uneven programming which could turn customers off. Although these challenges may stand in the way of media buyers embracing the medium today, there are clear signs the resolve to overcome them is significant. Kelsen believes that natural industry consolidation will streamline the way media is distributed and measured through digital sign networks. NEC’s Richer, made reference to related technology that has the potential to give digital networks at retail more credibility than any other medium – POS integration. The integration of digital sign programming with POS transactions, allows operators to link direct sales results to content programming. This has the potential to move traditional CPM (cost per thousand) ad rates to CPA (cost per acquisition). This alone can generate considerable interest while ensuring content is relevant to the customer experience.
What works?
The question of what works best in digital signage content is a broad and deep topic. Here is a small sample of what is covered in the book, Unleashing the Power of Digital Signage. In simple terms the success of a digital signage initiative depends on creating content that is appropriate to the target audience, screen type and placement (size, passive or touch etc). As a general rule the further the screen from the point of sale the more effective branding content is likely to be. The point of sale calls for product specific messaging that informs the buying process. Whenever practical, the option of allowing customers to drive the discovery process makes the experience more compelling. Touch screens have the potential to drive engagement allowing access to extensive detail including product comparisons and user ratings. In the case of retail placement, the degree of image movement should be relative to the audience movement. Will Conklin, Director of Sales & Marketing for Noventri a Maryland based vendor of digital signage solutions, has a simple rule: If your audience is moving your image should have limited movement. If your audience is still the image should be at least somewhat dynamic. The question of audio vs. no audio is always a hot topic. In general audio is a powerful addition to any motion graphic but in the wrong context it can be an annoyance resulting in a screen being turned off by associates. POS applications present limited opportunity for effective audio, while it can significantly enhance point of wait experiences. In the case of point of transit applications, the use of audio is represents unnecessary noise.
One attractive aspect of digital sign deployment is the potential to re-purpose content from other mediums, such as TV, for use on an out of home network. This can make content relatively inexpensive on one hand but to be effective, it’s important to focus on the context in which the message is received. One of the books’ contributors Christopher Grey PsyD, sheds light on how to create better content by assessing the experience it delivers. Grey suggests breaking it down into four areas:
- What the viewing audience sees – the physical perceptions
- What they feel – the emotional reaction
- What they think – the thoughts and attitudes that are formed
- What they do – the behavior that results from the interaction
As Kelsen puts it, you only need three things to create compelling digital signage content: the time, the tools and the talent. Sounds like the ingredients to just about any worthwhile endeavor.
We truly are entering an exciting time as technology convergence is creating opportunities to connect to meaningful content across multiple platforms. The real power of digital signage lies in relevant content but becomes even more powerful when it’s used as part of a communication grid. When digital signage is coupled with a mobile device it has the potential to give consumers customizable, portable and even more engaging experiences. All of this can happen in the context of where customers are and what they’re doing. As always content is king but I would add content in context reigns supreme.
By: Adrian Pynenburg
One of Time Magazine’s honored traditions is it’s annual assessment of who or what has done the most to influence the events of the year. In late 2006 Time named person of the year “You”, acknowledging most if not all people for advancing the information age through the use of the internet. The front page read; “You control the Information Age. Welcome to your world”. The story covered the far reaching effects of the internet, highlighting areas such as sharing of online content, emerging online communities and its impact on democratizing global media. As Time magazine editor Lev Grossman wrote “It’s about the many wresting power from the few and helping one another for nothing and how that will not only change the world, but also change the way the world changes”.
When one considers the far reaching effects of the Age of Customer Empowerment, it’s hard to draw the line on its full implications. Empowerment in the marketplace extends beyond access to information to controlling TV via PVR to accessing just about any movie or TV program, on demand, through Hulu. Add email marketing subscription controls and “My Site” parameters on web sites and… well, you get the picture. It makes the question of how marketers respond, seem particularly daunting. Perhaps even more so given that customers are really only starting to come to grips with their new found power. Technology has put the elements of empowerment well in place. As a result customers have changed the way they engage brands. It’s now time for brands to change the way they engage customers. It’s very important to understand that short of a complete melt down of the World Wide Web, this movement is here to stay and grow exponentially.
Apple Stores – No grab’n’go operation
Palmetto Market in a South Carolina Hilton resort location 
The Emotional / Rational Balancing Act
Have you noticed that over the last 40 years, the evolution of retail supply and demand has been very lopsided? The supply side of the equation has significantly outpaced progress on the demand side. The advances in quality control, space planning and logistics are a few examples of the progress we’ve made in managing the products that flow through the marketplace. When you compare this progress with the average retailer’s ability to meet consumer’s needs through a meaningful experience, the differences are stark. It is my sense that much of this disparity revolves around the outdated ‘build it and they will come’ mentality. It’s no secret that business deals much more effectively with ‘things’ rather than with people, so mass marketing to a faceless audience is second nature for most organizations.
When it comes to focusing on what it all boils down to in the marketplace, I think P&G’s CEO, AG Lafley says it best; “The First Moment of Truth is when the consumer makes the decision to buy a product. The Second Moment of Truth occurs when the consumer uses the product”. The power of this statement is that it allows us to look past all the noise associated with marketing, design and product/ service development to focus on one single concept. What really matters to the customer in making a purchase decision? In this context, the First Moment of Truth revolves around the experience leading up to and what occurs at the point of decision; the emotional connection, apparent value, accessibility, awareness, and compelling points of distinction.
There are many reasons to request feedback from your customers but the best motives revolve around the concept of empowerment. Today’s marketing efforts must acknowledge that customers have more information, and ultimately choice, than ever before. This translates into a better understanding of what is available, what’s right for them and why. This simple fact means communication must involve a dialogue rather than the old top down monologue method of telling your story. Giving your customers a voice is key to building lasting relationships while demonstrating that you want to involve them in improving the products and services they value. In addition, if dissatisfied customers don’t have an opportunity to express themselves directly to the source of their aggravation, they are more likely to find online forums to vent. Here are some additional reasons to engage customers for insights on the experience your brand delivers:
“
Great Fashions…Cheap” read the sign that greeted shoppers walking into a local apparel retailer recently. I couldn’t help but see the irony and think; this will cost the retailer dearly. Low prices are not what this particular brand was built on. When scanning the retail marketplace, one doesn’t have to look too far to see the same story play out with massive price reductions offered by premier retailers. The idea of aggressive pricing in itself is not unusual. What is unusual is the brands behind them and the frequency and scale with which price reductions are taking place. Who can argue that price incentives are critical to maintaining traffic and market share in an economic environment that has everyone looking to get more for less? From a retailer’s perspective, the question is; at what cost?