Status And Best Practice European Digital Signage Adrian

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 Daily. DOOH and We. Are. ON. com http: //www. dailydooh. com/

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). The graph shows how prolific our research teams are. Since 1 st January 2008 - 500+ articles, an average of 5. 51 posts a day! We write 6 days a week Italian Farmacia. TV 2

Definition of Digital Signage Also Known As / Seen As “A network of displays that can be remotely managed and whose business model revolves around merchandising or advertising” Source: Frost & Sullivan Network Types Self Financed / Branding Financed Through Advertising / Advertising Only 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. Mixed / Hybrid 3

High Impact General Outdoor Billboards, Posters Stadiums / Exhibition Halls Mobile Airports, Railway Stations 4

Retail High Street Retail Grocers Shopping Malls Petrol / Gas Station Forecourts ATMs 5

Captive Audience Leisure, Pubs, Clubs, Bars Transport, Taxis, Trams, Buses Hair Salons Waiting Rooms QSR (Mc. Donalds, Starbucks etc. ) 6

Real Estate Classifications Control Rooms Corporate Offices Rental / Staging Financial Exchanges University, College, School Studios Film Sets, TV Backdrops Government Buildings Highway Signs Theme Parks Race Tracks Casinos Retail Banks Corporate Reception Airports Areas Shopping Malls Stadiums Pub, Club, Bars Hotel Rooms and Lobbies Railway Stations Taxis, Trams, Buses Hair Salons Restaurants High Street Retailers Grocers Petrol Stations Hospital, Waiting Rooms, Surgeries Mobile Vans Outdoor ‘High Impact’ Billboards Mobile / Portable Screens Advertising Classifications 7

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 8

European Activity 2001 – 2007 Netherlands United Kingdom France Scandinavia (Emerging Markets) 2008 Germany Netherlands United Kingdom Scandinavia France Turkey Spain Poland Greece Italy 9

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) 10

Legacy Offline Screens You have Screens 1, but can you guarantee… that they are turned on? that they are playing relevant content? You have Content 2 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? 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 1 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 3 rd Party Advertising / Media Revenue (if desired) 2 11

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. 12

Imitate The Norm It's not Television Think TV- Poster+ / Animated Posters rather than It's not (actually) Digital Signage Digital Out of Home is a Content Delivery Business Think of the 4 th Screen, whether that be mobiles, Kiosks, Interactivity etc. 13

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

Note: Poor graphic quality due to Screen Shot 15

wrong adverts embarrassing brand collision wrong colour schemes can't choose music no interactivity no ambience presenter led family values wrong language Why wouldn't you (just) play MTV in your Retail Environment? bad language 16

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) 17

Trends Screens won’t be (traditional) Screen Shaped Device based signage solutions will start to prevail Digital Street Furniture User Generated Content (UGC) Further Why build when you can buy, why buy when you can rent? EPOS based Networks Shelf Edge Labelling Wi-Fi (should be free) / Wi. MAX Active Digital Signage (versus Passive) Web 2. 0 – especially loosely coupled application solutions 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 See http: //www. dailydooh. com/archives/746 18

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? 19

Sound matters Sound 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 hostile o Main effect is to reduce dwell time and therefore sales How to design an effective soundscape o o o 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 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/