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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

2Italian Farmacia.TV

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!

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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

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High Impact

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

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Retail

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

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Captive Audience

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

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Pub, Club, Bars

Shopping Malls

Corporate Offices

Outdoor ‘High Impact’

Billboards

Hotel Rooms and Lobbies

Stadiums

University, College, School

Corporate Reception Areas

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, Waiting Rooms, Surgeries

Casinos

Studios

Restaurants

Rental / Staging

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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

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European Activity

2001 – 2007 Netherlands United Kingdom France Scandinavia (Emerging Markets)

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

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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)

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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)

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Industry Problem = IT Opportunity

Content Delivery (is it Guaranteed?)Compliance for Digital Signage and

Screen NetworksRelevance with regard customer habits,

buying patterns, stock levels, time of day etc.

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Imitate The Norm

It's not TelevisionThink Poster+ / Animated Posters rather than

TV-

It's not (actually) Digital SignageDigital Out of Home is a Content Delivery

Business Think of the 4th Screen, whether that be

mobiles, Kiosks, Interactivity etc.

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Content Delivery Roadmap

Note: Poor graphic quality due to Screen Shot

15Note: Poor graphic quality due to Screen Shot

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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?

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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)

Why Retail Digital Signage?

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Trends Screens won’t 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

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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? What’s the eye-on-screen dwell time? How long should content segments be? How should it be day-parted? What is the wear-out time?

Sound mattersSound affects people powerfully, altering their behaviour

o Primary effects are physiological, psychological, cognitive, behavioural

o Research has shown that sound can increase retail sales by over 30%

Most retail sound is arbitrary, incongruous and hostileo Main effect is to reduce dwell time and therefore sales

How to design an effective soundscape

o Create audio brand guidelines (ABG)

o Remove inappropriate noise

o Optimise acoustics and install a decent sound system

o Design an effective background sound using psychoacoustics and ABGs

o Add foreground sound that is targeted, appropriate, valuable

o Consider the whole soundscape and listen: shut your eyes!

o Test and test again

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