Status And Best Practice European Digital Signage

1
Status And Best Practice European Digital Signage

• Adrian J Cotterill
• Interim Executive and Industry Analyst
  Specialising in Digital Out of Home and Web 2.0
• Co-Founder DailyDOOH and WeAreON.com

2

• Primary Target Audience is Media Owners, Media
  Planners, Media Buyers, Brands, Advertising
  Agencies, VCs, Angel Investors, Corporate and
  Retail Investors
• Actual Readership is (all of the above )
  Industry Execs, Screen Network Owners, Hardware
  and Software Suppliers, Journalists, Content
  Agencies, and Conference Organisers
• Visitors come from 88 countries/territories and
  include the United Kingdom, United States,
  Canada, Spain, India, Netherlands, Germany,
  Israel, Australia and France (the top 10 visitor
  locations for 2008).
• We write 6 days a week

• The graph shows how prolific our research teams
  are. Since 1st January 2008 - 500 articles, an
  average of 5.51 posts a day!

Italian Farmacia.TV
3

• 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
• Shelf Edge Labels
• Video-enhanced Shopping Carts
• etc.

• Network Types
• Self Financed / Branding
• Financed Through Advertising / Advertising Only
• Mixed / Hybrid

4

• High Impact
• General Outdoor
• Billboards, Posters
• Stadiums / Exhibition Halls
• Mobile
• Airports, Railway Stations

5

• Retail
• High Street Retail
• Grocers
• Shopping Malls
• Petrol / Gas Station Forecourts
• ATMs

6

• Captive Audience
• Leisure, Pubs, Clubs, Bars
• Transport, Taxis, Trams, Buses
• Hair Salons
• Waiting Rooms
• QSR (McDonalds, Starbucks etc.)?

7
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
8
Content For Profit

• Do customers remember the advertising they see on
  the screens?
• Does advertising on your network increase brand
  perception lift?
• Does the advertising prompt unplanned purchases?

• Normal Commercial Rules Apply!!
• Shoppers are conditioned to move through stores,
  not to stop, look and listen, some examples...
• VMG / CCUK 10 Seconds
• Neo Advertising 15 Seconds in Food Courts, 7 to
  10 seconds elsewhere
• Tesco Screens 5 Seconds
• Eye Corp 7, 7, 7 and 3

9
European Activity

• 2001 2007
• Netherlands
• United Kingdom
• France
• Scandinavia
• (Emerging Markets)?

• 2008
• Germany
• Netherlands
• United Kingdom
• Scandinavia
• France
• Turkey
• Spain
• Poland
• Greece
• Italy

10
Retailers in Europe

• (
• Legacy Music Systems meant legacy music
  providers, meant sometimes poor / token Screens,
  disjointed rollouts
• Lack of IT involvement in projects meant Screen
  Network providers / aggregators moved in
• Tesco TV slowed grocery rollouts

• )?
• Retail downturn has meant more focus on quality
  and ambience ('retail theatre')?
• Neo Advertising doing a great job in Retail (and
  Malls)
• Tesco Screens has got grocery sector excited
  (again)?

11
Legacy Offline Screens

• 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)?
12
Industry Problem IT Opportunity

• 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.

13
Imitate The Norm

• It's not Television
• Think Poster / Animated Posters rather than TV-
  
• It's not (actually) Digital Signage
• Digital Out of Home is a Content Delivery
  Business
• Think of the 4th Screen, whether that be mobiles,
  Kiosks, Interactivity etc.

14
Content Delivery Roadmap
Note Poor graphic quality due to Screen Shot
15
Note Poor graphic quality due to Screen Shot
16

• wrong adverts
• embarrassing brand collision
• wrong colour schemes
• can't choose music
• no interactivity
• no ambience
• presenter led
• family values
• wrong language
• bad language

Why wouldn't you (just) play MTV in your Retail
Environment?
17
Why Retail 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)?

18

• Trends
• Screens wont be (traditional) Screen Shaped
• Device based signage solutions will start to
  prevail
• Digital Street Furniture
• User Generated Content (UGC)
• Predictions
• Bluetooth as an out of home medium will die
• Major Cities will have issue with Visual Clutter
• People will see digital out of home as the
  industry to be in

• Further
• Why build when you can buy, why buy when you can
  rent?
• EPOS based Networks
• Shelf Edge Labelling
• Wi-Fi (should be free) / WiMAX
• Active Digital Signage (versus Passive)?
• Web 2.0 especially loosely coupled application
  solutions

• See http//www.dailydooh.com/archives/746

19
Buy From / Work With Solution Providers!!!

• 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?

20
Sound matters

• Sound affects people powerfully, altering their
  behaviour
• Primary effects are physiological, psychological,
  cognitive, behavioural
• Research has shown that sound can increase retail
  sales by over 30
• Most retail sound is arbitrary, incongruous and
  hostile
• Main effect is to reduce dwell time and therefore
  sales
• How to design an effective soundscape
• Create audio brand guidelines (ABG)?
• Remove inappropriate noise
• Optimise acoustics and install a decent sound
  system
• Design an effective background sound using
  psychoacoustics and ABGs
• Add foreground sound that is targeted,
  appropriate, valuable
• Consider the whole soundscape and listen shut
  your eyes!
• Test and test again

• Slide reproduced by kind permission Julian
  Treasure, http//www.thesoundagency.com/