The next POPAI Digital Signage 101 webinar is coming up on August 7th

This is pretty much a cut-and-paste from the announcement two months ago, but if you, a client, a partner or some other interested party you know about is starting to explore the exciting world of digital out-of-home media, POPAI's holding another "Digital Signage 101" webinar on August 7th.

Specifically designed to help newcomers see past the industry hype and focus on the projects, business cases and best practices that have been successful in the real world, POPAI's Introduction to Digital Signage webinar is a great way to spend an hour of your time -- and only $50 -- to jump-start your understanding of what works and what doesn't in the digital signage world.

Dale Smith at Peerless will be leading the way, covering topics including:

• An introduction to the digital signage market with some basic market history and analysis,
• A look at some of the most common usage scenarios,
• An explanation of the components used in typical digital signage networks,
• A discussion of the benefits and drawbacks of using digital signage, and
• An examination of some of the most common pitfalls and problems that occur, and ways to avoid them in the first place.

So please join us on Thursday, August 7, 2008 at 1:00pm EDT


Tags: digital signage

Rethinking the concept of consumer intent

Back in 2005, we did an article over on the WireSpring blog about calculating the ROI for digital signs, and started out by describing an "awareness funnel" that took walked through a shopper's first moment of truth with an item -- from becoming aware that the product existed to actually purchasing it. It looked like this:

              / \
             /   \ <- SALES
            /_____\
           /       \ <- IDENTIFICATION
          /_________\
         /           \ <- PREFERENCE
        /_____________\
       /               \ <- PERCEPTION
      /_________________\
     /                   \ <- RECALL
    /_____________________\
   /                       \ <- RECOGNITION
  /_________________________\
 /                           \ <- AWARENESS
/_____________________________\

As I was reviewing some old blog articles from Advertising Age recently, I came across another description of the same concept, this time from the perspective of consumer intent. As the article's author Troy Young notes, "Intention is one or two steps before purchase and far removed from 'unaware.' Brand advertisers love intention, naturally, but the real magic is the part before intention -- moving a consumer from being 'unaware' to being 'predisposed'.... What the data show is this: In creating value for brands, we need to look beyond 'intent to buy' and toward 'intent to engage' with a brand message." Consequently, his funnel looks roughly like this:

              / \
             /   \ <- SALES
            /_____\
           /       \ <- ??
          /_________\
         /           \ <- ?
        /_____________\
       /               \ <- INTENTION
      /_________________\
     /                   \ <- PREDISPOSED
    /_____________________\
   /                       \ <- AWARE
  /_________________________\
 /                           \ <- UNAWARE
/_____________________________\

While Young states that "the real magic is the part before intention", from where I'm standing, I'd say the real magic is in fact after it, when you complete the 2-stage process, whatever it is, that converts a mere shopper into an actual buyer. Of course, Young notes that such a process will only happen when the purchase actually demands a decision - nobody's going through 6 or 7 steps to buy a can of soda or a pack of gum. But I guess that's the difference between a brand-focused guy like Young and a sales-focused guy like me: for the brand-centric, building the consumer psyche to the point where there's real intent to buy is the biggest challenge, and thus garners the lion's share of ad funds. That's why we see so many commercials for stuff, and none of them actually say "look, just buy me already!" We're instead finessed into wanting, desiring whatever it is -- a car, the latest clothes, a new computer. But very few actually take the direct route and say "buy me now." I suppose it's because unless the viewer has an immediate need for the product, the message is lost and there's no "residual" value. With a brand-centric message, on the other hand, each commercial, print ad, banner on the 'net or other marketing device builds on previous messages, essentially assuming in advance that the viewer doesn't want to make the purchase right now, but might need to in the future.

My funnel, on the other hand, is more heavily weighted towards the top. I assume that, being a good brand marketer, the product's already going to be in the hearts and minds of my viewers. My job is to figure out how to turn all of that goodwill and built-up brand recognition into an actual sale of the product. That's one of the reasons I like digital signage so much - it's hard to find a more direct route to shoppers, or a better place to put a message like "hey you! buy me right now!" -- in as elegant and beautiful a way as possible, of course.

Tags: in-store marketing, marketing at-retail, digital signage, shopper marketing

Introduction to digital signage webinar coming up on June 12th

There's been a lot of talk lately about digital signage, and specifically, treating the store as a new medium for communicating everything from product advertisements to late-breaking news and important information. Regardless of where you stand on the issue, there's no doubt that the industry is growing at a fast clip, and a lot of retailers, brands and marketing agencies are clamoring to learn more about its efficacy as a marketing medium.

While there are a lot of proclaimed "experts" in the field, POPAI, the global organization for Marketing at Retail, has decided to start holding bi-monthly "Introduction to Digital Signage" webinars to get more of their members -- as well as interested non-members -- properly oriented in this complex and evolving field. The first of these webinars is coming up this week - Thursday, June 12, at 1PM EDT.

If you're already an expert in the field of digital signage, this webinar isn't for you. But if you're just starting out in the industry, or if you have a client or partner that is, it will give you an excellent introduction to the exciting world of digital out-of-home media.

Specifically designed to help newcomers see past the industry hype and focus on the projects, business cases and best practices that have been successful in the real world, POPAI's Introduction to Digital Signage webinar is a great way to spend an hour of your time -- and only $50 -- to jump-start your understanding of what works and what doesn't in the digital signage world.

The topics we'll cover include:

• An introduction to the digital signage market with some basic market history and analysis,
• A look at some of the most common usage scenarios,
• An explanation of the components used in typical digital signage networks,
• A discussion of the benefits and drawbacks of using digital signage, and
• An examination of some of the most common pitfalls and problems that occur, and ways to avoid them in the first place.

So please join us on Thursday, June 12, 2008 at 1:00pm EDT


If you're interested, you can click here to sign up now! You have to sign up by the end of the day on Wednesday the 11th in order to participate, so don't wait too long if you want to check it out.

Tags: digital signage

More retailers discover the benefits of in-store TV

Promo magazine has put together a piece that focuses on a handful of retailers and their experience with in-store TV. According to the article, "About 630,000 TV screens are now housed in 97,000 U.S. retail stores, estimates PowerPact, a consumer marketing agency. That number is projected to grow by 20% a year."

Obviously, this is good news. But even more interesting is the fact that "hipper" stores like Borders (whose in-store TV developments we wrote about in early December), Ecko Unltd and Limited Too are following in the steps of Wal-Mart, who already has 120,000 screens according to Promo. It's even more reassuring that these retailers are working to develop unique content for the in-store TV's instead of just settling for glorified versions of late-night infomercials.

According to the article, "Ecko Unltd teamed up with Channel M to launch 'ecko TV' last October. It uses short-form content -- everything from sports and shout-outs from celebrities -- to 'stop people in their tracks,' says Eric Hebel, president and COO of Channel M."

This is exactly the kind of approach that all companies should take when developing in-store TV project plans: make it eye-catching and entertaining above all else. If a customer stops to watch a video because they are genuinely interested in its content, there's a better chance of the content's message being imparted (rather than if the customer is aware that they are shamelessly being sold a product and decide not to even glance at the screens).

The article also gives lip service to a critic of this kind of advertising: "'It is an intrusion,' says Susan Linn, the group's co-founder. 'This is part of a targeted device by corporations to get brands in our face 24 hours, seven days a week. It may benefit marketers, but it doesn't do the rest of us a lot of good.'"

I don't buy this argument. After all, we are talking about in-store advertising here, so I don't know how that aims to keep "brands in our face 24 hours, seven days a week." Nobody is ever forced to walk into a store. The only time I'd be exposed to in-store TV from Wal-Mart or Borders is if I make the conscious decision to give them my time.

Once a customer is in a store, should it not be the goal of any retailer to enforce their brand and make a sale while they have our attention? Moreover, isn't it better for all of us (customers and retailers) if the store projects an attractive and possibly even entertaining atmosphere? If in-store TV can accomplish both tasks, then why should retailers back off of it? It seems to me like Ms. Linn has a beef with advertising in general and merely looks at this as an illustration of the increasing pervasion of ads.

On the off-chance that you're not familiar with in-store TV networks (which is the subject of one of our other blogs, Digital Signage News), I recommend you check out WireSpring's digital signage primer, and specifically the section on Retail TV.

Tags: digital signage, store experience, in-store TV

Borders adds original film & music content to in-store video

According to this article in Variety, Hollywood is taking some tentative steps into the store, with Borders announcing that they'll be featuring videos of live musicians as well an interviews with prominent filmmakers like Wes Anderson, or as they put it, "real entertainment programming -- not ads."

While I think this is great idea, when it comes to Hollywood the line between entertainment and advertising is very hard to define. Take for instance late-night talk shows. Yes, they are entertaining, but actors and musicians appear on them for the purposes of selling a new product of theirs. So let's be honest and look at the implications of showing this kind of content in store... You can't put interviews and live shows on a screen in a Borders and not call it an ad, no matter how entertaining and informative it may be.

I'm a Borders junkie myself. I can't walk into the store without buying something, so anecdotally I think this kind of advertising has a good chance of being successful. There have been plenty of times when I've lingered inside while unable to make a purchase decision. If I were to see a particularly interesting interview or a great live performance, it could easily sway me. "Entertainment" as a concept is much easier to sell in video form than other media, so the producers of this content no doubt see an opportunity to get their pitch across in the best way possible, and to an audience that's already receptive to making purchases.

However, people also go to Borders to get away -- it's a haven for a lot of people. So if the content isn't truly entertaining, and it's just thinly-veiled advertising, it will be a turn-off for a big contingent of Borders shoppers. That will be the toughest part of this project: making sure that the content, if it has to lean more towards the direction of entertaining people than trying to sell to them.

Tags: Borders, digital signage, retail advertising

Kroger and Nascar team up for in-store blitz

According to MediaPost, Kroger and Nascar are gearing up (no pun intended, honestly) for a major in-store marketing push, with Nascar providing POP displays, buying screen time on the digital signage network and even branding packages for dozens of different branded goods in 2,500 Kroger stores. The purpose of the event will be to celebrate the 50th anniversary of the Daytona 500, Nascar's central event.

As you might imagine, branding packaged goods means that Nascar isn't just working with Kroger on the deal. They've made arrangements with General Mills, ConAgra, Kellogg, PepsiCo and a bunch of other companies to feature the Daytona 500 50th anniversary race logo on products in Kroger stores, all starting this week.

Interestingly, one major reason to work an in-store marketing deal is because Nascar fan demographics are starting to shift. About 40% (and rising) of Nascar fans are women, and this campaign is seen as a way to better reach that part of their audience as well as promote the brand to more Kroger shoppers (like most grocers Kroger skews to women too).

I have to say I'm impressed. This is a pretty savvy move, even for Nascar, which is known to have run some clever campaigns in the past. I wonder if they'll have any way of measuring the discreet elements of the promotion to see which work and which don't. Given the quantity of products that will be branded and the fact that there will "only" be 2,500 stores running the campaign, it doesn't seem like standard-issue split tests will be viable. Likewise, if they want to go for maximum exposure at all costs, they likely won't want to limit the amount of marketing in any given store. Thus, it'll be hard to figure out how much of an effect the branded merchandise has versus the branded fixtures or digital signage ads.

Or, given how massively profitable Nascar and related companies like ISC are, maybe they just don't care :)

Tags: retail media, digital signage, marketing at retail

Mattel and FAO Schwarz bring Barbie into the digital age

I can't say I've yet been to the Barbie Boutique in FAO Schwarz (the cool one in New York City, not those lame satellite stores that have popped up in malls from time to time), but after reading this article at VM+SD I think I might have to take a look.

While FAO Schwarz has always been known to set the bar for visual design and in-store theatrics, the latest Barbie installation from Mattel goes above and beyond the current state-of-the-art to deliver an interactive experience that is designed to be both the means (to encourage more Barbie purchases) and an end in itself (an entertaining, interactive and brand-building experience).

Featuring kiosk terminals that let girls (and their moms) design sophisticated custom outfits, and big flat screens that show off the designs on a virtual catwalk, the boutique does everything to empower the shopper, promote high-margin product sales and reinforce the Barbie brand. While the boutique is clad in reserved white laminate, frosted class and sleek metals, the signature pink color can be seen throughout, lest anyone forget they're in Barbie country.

Given how tech-savvy youngsters are, melding the classic Barbie brand with a high-tech in-store experience not only allows Mattel to create a more immersive and interactive environment, but also reinforces Barbie's relevance in an age when kids are spending more and more time in front of computers and video games. Barbie hasn't yet lost her relevance as a top-tier toy, but Mattel doesn't want to take any chances. Unfortunately, given the size of the boutique and the complexity of the layout I'd be surprised to see this experience get transplanted to many other toy stores, but there's always the possibility that it will be a launching pad for a new general merchandising strategy (that might even feature some of the technological components), and a tie-in to the Barbie website (which does have a lot of interactive features).

Tags: Barbie, digital signage, kiosks

The future of advertising and retail digital signage

Adrian Cotterhill, editor of the Digital Out of Home Advertising Networks (DOOHAN) directory (published in the UK by The Screen, an industry body devoted to digital signage in Europe), posted a PowerPoint presentation on his blog, the Daily DOOH, focused on the status of retail digital signage in the UK, and where it might be headed.

The first few slides are pretty parochial and are obviously geared towards people as industry-savvy as the average reader of this blog might be, but the rest of the content is quite good. In particular I was pleased with his requirements for success (including such remarkably elusive things as clear strategy and vision and good content), and several pages of slides trying to convince the audience that digital signage really isn't like television. I wish people would get that.

On the heels of that presentation comes another, this time from IBM. Titled "the end of advertising as we know it (PDF link)", the 28-page report looks at the current state of the advertising industry and predicts that there will be more disruption to advertising in the next 5 years than there have been in the past 50.

The IBM report looks at a number of trends, like electronic inventory management, user-generated content and of course the rise of out-of-home advertising. In general, it's an excellent summary of where a big company sees the industry headed. They're not actually involved in the advertising industry, mind you, but with their fingers in so many pies and so much of advertising going towards high-tech these days, I found more than a few insights while reading it over.

If you have a few minutes today, do yourselves a favor and download these two reports.

Tags: digital signage, out-of-home advertising, OOH

Will retailers look to the Internet for clues to success?

According to a new report released by Datamonitor Plc (and as reported by the Wise Marketer), "retailers around the world are hoping to win back lost market share by making their customers' shopping experiences a little more meaningful - and even theatrical - with emphasis placed on the sensuous elements of an in-store shopping trip." Of course this should come as no great surprise to those working in retail design and marketing, however the report's summary identifies a few key trends that, at least upon my initial cursory analysis, don't quite fit with what my customers and colleagues have been telling me recently.

The summary leads off with the notion that, "the next step in the battle to retain customers is to streamline the
buying experience, bringing it more in line with Internet shopping in
terms of ease and speed of transaction." While most retailers -- especially big ones -- do constantly try to optimize checkout lanes, reduce overall transaction time, and generally improve the part of the experience where the customer has to pay for stuff, in all other parts of the store retailers have been focusing on ways to make bricks-and-mortar less like the Internet, not more. The report notes that as tracking devices become more reliable at identifying a shopper's race, gender and age, retailers will be able to beam targeted ads and messages to nearby digital signs in hopes of catching their attention. So ok, maybe stores will start experimenting with Internet-style banner ads. However, where experience really counts, there's still no topping the bricks-and-mortar store.

Looking for a new guitar? Want to try on a pair of shoes? Is the Corinthian leather really that much nicer than the brushed vinyl? There Internet still lags far behind the real-world experience when it comes to examining/analyzing anything that can't be captured accurately in a photo or two. Lots of really innovative work going on inside the store these days tries to highlight the advantages of traditional commerce, and increasingly, hybrid commerce.

Of course, where the Internet excels is in instances where the customer can benefit from a very large amount of information, the ability to compare multiple products at once (for both price and features), and see reviews from (presumably) like-minded shoppers. And in my experience this is where retailers have been putting more effort lately. In an effort to combat Amazon, Borders has had kiosks in-store for a while, and Barnes and Noble is starting to follow suit. Best Buy and Circuit City have had product info/comparison kiosks for a few years, and recently I've even seen department and home furnishing stores get into the act.

While the Datamonitor study cites POS, RFID and proximity sensors, the key driver (which they also mention) is most likely to be mobile, or perhaps more accurately, a combination of local in-store kiosks, Bluetooth/WiFi beaconing, and mobile Internet, all delivered to a shopper's own handset and in-store digital signs. By letting shoppers access the same kind of information that they'd be able to get over the Internet, retailers can help level the playing field with e-commerce while still pushing native advantages like allowing shoppers to interact with products before buying them.

Giving shoppers the option to get information on their mobile devices forces retailers to give up some control (since the mobile devices come in all shapes and sizes, have differing capabilities, and of course can access content outside of the retailer's control). However, offering the service in the first place means that retailers can still control some of the content and marketing (as opposed to none), can provide for deeper interaction (by using digital signs as big display screens, or letting users snap a picture of an item's bar code to look up information on it, for example), and can help build customer loyalty in a highly value-added, purely opt-in fashion.

Tags: digital signage, retail media, store experience

Digital signage owners should look for the fine line between ambient and not

Digital signage gets a lot of lip service these days because like other forms of POP these screens can deliver marketing messages to shoppers while they're in a buying (or at least shopping) mode. The allure of being able to advertise so close in both time and space to where a purchase decision will be made makes the store a lucrative target for advertisers savvy enough to use it to its fullest potential. Unlike most other forms of POP, though, digital signs have a few other things going for them that make them unique, most notably that they can use both audio and animation to grab a shopper's attention.

While the marketing possibilities abound, there's a significant problem with a lot of today's in-store networks: they can be pretty annoying, for shoppers and employees alike. Building out an in-store media system that's effective while remaining unobtrusive is tough, even for marketing and merchandising experts. That's why this blog entry from the guys at Motorola (courtesy of this post from Experentia) caught my attention this morning. While Motorola is focusing on ways to create unobtrusive, ambient displays for the home environment, in reality they could be testing their techniques in stores as well. They note that their effort revolves around solving two fairly complex problems:

Over the past few decades many researchers have built devices that use light, color, sound, or motion to convey information about people, activities, and places. These devices let people see information at a glance, without the need to go to another device or navigate an interface.

...There are two big challenges in this space from a research perspective. The first is to create displays that are truly ambient and don't interfere with the home environment. We want to ensure that we can provide useful information without distracting people from their home lives. The second challenge is all about finding the most useful information sources for these displays. Obviously, the two are closely tied together and are a big part of our research into ambient communications.

The displays they favor aren't necessarily traditional big, flat panels, but instead encompass a broad range of devices from simple colored lights to small embedded screens. The display of a particular type of information is optimized for each device.

Visual clutter and a competitive POP environment will make ambient media a tough sell in retail right now, but as more retailers tighten down on what will and won't be allowed in their stores I'd expect these techniques to become more popular. I also expect to see "traditional" digital signage systems become more integrated into the retail environment, and the research being conducted by Motorola (and others, surely) will likely yield content creation and optimization techniques that will allow these systems to behave more like a part of the store instead of a bolted-on appendage.

To truly be effective, though, ambient media still needs to be noticed, even if it's typically in the periphery. Perhaps retailers will train shoppers to mentally correlate images, shapes, colors and sounds with the different types of information that might be displayed. A retailer that settled on a standardized set of visual and audio cues to help visitors connect with their in-store media would have the advantage of being able to quickly yet unobtrusively connect with regular shoppers. The problem of course, is that infrequent visitors would be unfamiliar with the cues, and if the media is a bit too ambient, would thus be more likely to tune it out entirely rather than be engaged by it.

Tags: ambient media, digital signage, retail media

Wal-Mart to provide some in-store media measurement data

Sorry for nearly month-long posting hiatus on this blog. I've been pretty good about keeping up with the WireSpring Kiosk/Digital Signage Weblog, but that came at the expense of posting here (and to digital signage news and kiosk news) less frequently during some serious busy times.

Fortunately, I can kick things back off with a bang, since Wal-Mart recently announced that they would be releasing some retail media tracking data as part of a larger project with Nielsen In-Store to measure in-store media consumption and effectiveness in about 1,000 of its US stores, and that's seriously big news for the retail media industry. Apparently, the company's initial results with Nielsen's PRISM in-store tracking system were determined to be 76% accurate (via cross-checks with in-person audits), which was a better than expected result. Tweaks to the system have supposedly raised accuracy to about 85%, which would be pretty impressive for a fully automated system, and were good enough for Wal-Mart to commit to a larger deployment of the system.

Considering how many have bemoaned the lack of accountability and effectiveness of traditional media channels recently (myself included), many are hopeful that the results of such a wide-scale study will indicate that retail media is better at connecting with consumers and communicating brand messages. Of course, if it turns out that's not the case, we'll be in for a rough time as marketers again scramble to find something that works. Not that I think that will be an actual problem. Our internal, customer-provided (and thus potentially tainted) data clearly indicates sales boosts and high satisfaction scores correlated with retail digital media networks.

At the DSE show last week, Nielsen In-Store's George Wishart noted that CPM (or gross impressions, or something similar) is likely to be the de-facto standard for media measurement and pricing for the foreseeable future, as that's what media planners are most comfortable with. Of course, Nielsen's PRISM system, which relies on simple infrared scanners to essentially measure store traffic at different points, is suited for only capturing this particular measurement. On the other hand, while more sophisticated measurement systems that can do things like eye-tracking, gaze-tracking, and idleness tracking could generate more precise measurements, without something to compare against, retailers and marketers would have little ability to actually use the data (not to mention the privacy issues that come with that level of tracking).

As ususal, RetailWire has some good discussion on the subject, so you might want to check that out as well.

Tags: digital signage, in-store media, retail media, Wal-Mart, PRISM

IconNicholson's interactive mirrors bring social media to shopping

While the image above may look like something out of the Haunted Mansion at DisneyWorld, it is in fact a prototype interactive mirror developed by IconNicholson and demonstrated at an NYC Bloomingdales for a few days last week. The mirror allows a shopper to virtually try on different outfits by projecting an image of the selected item(s) "on top of" the shopper's own image. While the obvious benefit might be a new wave of efficiency that allows shoppers to try out a larger number of items without having to drag them all into a dressing room, the mirror's developers had a more social goal in mind: group shopping. As this article from the New York Times notes,

As [self-described shopaholic Tracy] Noah stood in front of the mirror, a camera relayed live video images of her to an Internet site where online participants could view her outfit. When Web viewers responded by sending her comments, their instant messages popped up on the left side of the mirror for Ms. Noah to read. They also selected items for her to try on, causing virtual images of the clothing to appear before her in the middle of the mirror, like life-size holograms.

The article notes that shopping for non-essentials (ok, what I would call non-essentials) can be a largely social experience for many, and the prospect of trading a night out shopping with the girls isn't likely to be replaced by a night in front of the computer watching one of your friends go shopping any time soon.

Augmented reality mirrors have been a hot topic lately. Other blog posts about them include:
AddMirror brings retail media to the narcissist
Adidas virtual shoe-fitting mirror

Tags: IconNicholson, Bloomingdales, digital signage, interactive mirror

Cinema ads induce emotional buying effect

Hot on the heels of the news that cinema advertising company National CineMedia successfully completed its IPO comes this report from the Wise Marketer suggesting that the very type of ads the firm sells have been found to induce the emotional buying effect and create strong viewer involvement. The survey, conducted by ad research firm Ipsos ASI on behalf of cinema advertising firm Screenvision, was conducted in France and Spain to try and determine the power of emotions in cinema ad campaigns. The article notes:

It shows that the viewers are emotionally touched by the screen campaigns, which generate significant public involvement and strong positive emotions.

In association with TV campaigns, screen advertising increases the quality and the impact of ad messages, reinforcing the viewers' will to purchase. The survey results show the relationship between emotions generated by screen advertising and the quality of the response to the advertisement.....

The survey was conducted among a representative population sample aged 15-60. It compared the responses of heavy cinema viewers who have watched a specific ad on screen in a cinema during the previous seven days with the responses of those who had seen the ad on TV only.

In both countries, heavy cinemagoers who had seen the cinema ad expressed fewer negative and passive feelings about the ad than those who had only seen it only on TV. In France, heavy cinemagoers felt 20% fewer negative and passive emotions than TV-only viewers. Positive and active emotions were 39% higher for heavy cinemagoers than for than for less frequent cinemagoers.

While Screenvision supplies both on-screen and off-screen advertising media for movie theaters, it sounds like this study primarily focused on the digital signage-like element where full-motion video (perhaps simply television commercials) are displayed on-screen before the movie begins. Using the same content would have allowed Ipsos ASI to determine what kind of effect the media had in the cinema versus only on TV.

Tags: Screenvision, National CineMedia, digital signage, out-of-home advertising

A look at experiential and branding-oriented digital signage networks

Over at our Dynamic Digital Signage and Interactive Kiosks Journal, we're looking at a number of different digital signage business models in an attempt to sort out where the best business opportunities lie for different specialty houses. Our first installment went out today, and it's a good fit for the broad concept of "in-store and retail media news," since it focuses on in-store media networks that are designed to build brand value instead of advertise particular products (which is what most people think about when they hear the words "digital signage", I think).

When we talk about experiential and branding networks, we're referring to digital signage displays that are designed to increase the impact of the host's brand and what it stands for. These are typically found in retail environments, but can be used in banks and other venues as well. Experiential networks are supposed to make the host environment more pleasant, improve the in-store experience and deliver imagery that highlights the core tenets of the brand -- without actually advertising the venue's wares directly. For example, think of Oakley, whose small, often spartan stores use plasma screens to show high-motion extreme sports and action clips (featuring Oakley-clad adventurers) that are just long enough to impart a sense of adventure and adrenaline without turning into a segment from ESPN. Or consider Nike's various in-store media networks that show edgy video, artistic images and unusual iconography in a visceral attempt to capture raw motion and skill, without necessarily promoting a particular sport, product or spokesperson.

A number of pros and cons are mentioned, along with our observation that unless you're the brand or a company already closely allied with the brand, these types of networks can be a very tough sell (and in fact, even if you're an internal champion at a brand-oriented company they can be a tough sell). So if these are the kinds of networks that interest you, you may want to check out the complete article:Digital signage networks: experience, branding and private label networks

Tags: digital signage, retail media networks, at-retail media, brand-building, advertising, marketing

RetailWire discusses the potential of in-store advertising

Once again, the folks at RetailWire are having another lively discussion about the future of in-store media. Retail media expert Laura Davis-Taylor leads this BrainTrust Query (free registration required) in an attempt to answer the question of whether digitally-based retail media networks need a unique team and/or skills to function and be utilized to their fullest extent. As usual, the discussion is quite good, and there are responses on both sides of the table. My favorite is from Mark Lilien, a consultant with Retail Technology Group, who argues in favor of a interdisciplinary team by noting that, "retailing technology success is often 1% strategy and 99% execution."

That's a hugely important (and accurate) thought that still isn't well understood by many struggling to implement their retail media programs. The work that goes into up-front strategy is quickly surpassed by the work needed to implement and subsequently maintain any form of retail digital media, whether it be audio, video or interactive. Just because a medium is digital doesn't mean that it can lose it's relevancy or timeliness. Likewise, marketers would be wise to listen to the opinions of their customers during a retail media pilot, and consider making adjustments accordingly.

By my totally unscientific estimate, I believe that most retail media networks (digital signage in particular) are probably only utilized at 75% or less of their maximum efficiency (however one might measure that), since almost every network that I've looked at could benefit from some sort of improvement or other. Still, there are many who believe that once a network is deployed, it's finished, and the rest is up to the content guys. While that mentality might allow some networks to stay successful over time, there's almost always something that could be done to make it a little better for the consumer, and better performing for the retailer.

Tags: retail media, digital signage, in-store media, in-store advertising

Just say No to Interruption Marketing

With all of the hoopla surrounding the recent rise of in-store media like digital signage and retail audio networks, it can be easy to forget that for every cool, innovative and successful projects there are any number that not only don't meet their objectives, but also go one step further and irritate shoppers. For all those projects, David Meerman Scott has started an Interruption Marketing Hall of Shame at Web Ink Now. A frequent traveler, David's top three inductees are all related to airports. For example, look at what he has to say about his #2 pick, CNN, for their CNN Airport Network:

CNN has created this crap so they make the Hall of Shame. I actually like CNN, but only when I choose to watch it (usually while I am on my exercise machine at home). I don't want to watch (listen) all the time. CNN should have a clause in the contracts that they write with airports for the CNN Airport Network that says that quiet areas must be made available in every terminal that installs their network. Listen up CNN: You are hurting your brand with this nonsense.

Pretty strong words (I don't particularly mind CNN Airport Network myself), but there certainly are cases where less would have been more, and an otherwise good marketing opportunity becomes an annoyance. For example, #4 on David's list, Simon Property Group, is an example that I agree with. When Simon and Publicis Group announced that they were creating a digital signage network to be featured in malls, we all wondered what form it might take. After witnessing it first hand this holiday season, I must say I'm underwhelmed. In order to compete for attention over the cacaphony, the in-concourse screens blare audio that often just smashes up against audio coming from the different mall stores. In the food court, the screens are poorly placed (in the malls I visited, at least), and while not particularly loud or obnoxious compared to the already deafening noise that food courts are known for during peak traffic times, I can only imagine that when it's quieter they would be.

Retail marketing should not be interruption marketing. Retail media networks should complement the store environment, not stand apart from it in an attempt to be seen and heard. I think this is one of the biggest mistakes still being made in the retail media space today, and it's the reason why so many are still wary of using these systems in store.

Tags: retail media, in-store media, advertising, digital signage

Could Google bring user-created content into retail stores?

A few months ago I speculated that Google and YouTube could team up to deliver low-cost content to the thousands of digital sign networks out there that can't afford full-time custom content creation. Just yesterday there was an interesting article about automatic video tagging that I blogged about at Digital Signage News, in fact, that added to this speculation.

Today, it seems, would be a good day to add even more fuel to the fire, in the form of two ads about real companies utilizing low-budget content, and another about Google's foray into radio advertising. First is this article from AdvertisingAge about Dove solicing ads from consumers. AdAge notes:

In an e-mail today to members of its online relationship-marketing program, Dove began seeking entries for a 30-second ad to promote a new product, Dove Cream Oil Body Wash.

The e-mail directs people to DoveCreamOil.com, a site hosted on Time Warner's AOL, which provides online tools, artwork, photos and music for creating ads, and also allows consumers to upload their own files. "You don't need any special skills or experience," the e-mail says.

The second article is from arch-rival AdWeek, and focuses on Southwest Airlines, who is also asking for user-generated content to incorporate into its TV advertising campaign. Southwest is actually partnering with YouTube to collect 20 user-submitted embarrasing situations to include in its "Wanna Get Away" campaign. And in fact AdWeek notes a few other examples where name-brand CPGs have experimented with user-generated content:

Doritos is currently running a contest with Yahoo that will air a user-submitted video during the Super Bowl. Chevrolet, Sony and Converse are also experimenting with the concept.

A Chevy Tahoe promotion that let consumers create their own executions pointed to the risks of the tactic. Environmentally minded users created several ads lambasting the SUV for its effect on the environment.

And how would a hypothetical GooTube or Tooble get all of this great content from the Internet to a bunch of in-store displays without a lot of administrator intervention? Well, that's where this last article from ClickZ comes in. Google is finally putting its acquisition of dMarc to good use, and allowing a current pool of 700 radio stations to subscribe to its AdWords-like service for radio. The article states:

Google Audio Ads are sold on a CPM basis through the AdWords platform, and advertisers can target on factors like geographical market and time of day. Reporting functions disclose which stations ran ads and when, and real-time air checks are available, a bit of a novelty for interactive marketers who have grown used to not seeing their non-search executions.

The retail media market is still to immature for Google to put a lot of effort behind it, but it's certainly coming, and with brands getting on board behind user-created content (and the ongoing march of progress over at Google), I'm willing to bet that within a few years there will be little distinction between how Google and others supply Internet, radio, TV and retail media spots and fill out inventory.

One last (and quick) update: No sooner had I published this post than I came across David Polinchock's post about Martin Sorrell's take on Google (he calls them the "frienemy"). Great article, go check it out, and read the other article that he references about Google and ad agencies.

Tags: Google, YouTube, dMarc, digital signage, retail media, out-of-home advertising

Making an emotional appeal with in-store media

Note: I've cross-posted this to the Digital Signage News blog, since the subscriberships seem to be somewhat different (and unrelated).

Institutions spend too much time focusing on the science of shopping, rather than the art of shopping. So says The Integer Group's Meg Kinney in her article "The Art of Shopping," featured in the November/December issue of HUB Magazine. While that sentence might not appear to make a lot of sense on the surface (since when is shopping an art or a science, anyhow?), Kinney looks at the growing number of retailers who are focusing on ways to enhance the in-store experience, and comes to some interesting conclusions about what needs to be done to bring in-store media up to snuff in today's experiential retail environment.... Read the full article: Making an emotional appeal with in-store media

Tags: in-store media, at-retail media, digital signage, out-of-home advertising,

Supervalu aims to surprise and delight shoppers

Fresh off of their recent acquisition of the Albertson's grocery chain, Supervalu CEO Jeff Noddle announced an ambitious plan to spend $1 billion in the coming years to remodel existing stores and build a few new ones under a new program called Premium Fresh & Healthy. The goal, according to Duncan Mac Naughton, EVP of Merchandising Marketing, "is all about surprising and delighting the customer," which will apparently include things like:

[expanding the stores'] produce, meat, seafood, bakery and deli departments. Stores remodeled or built under the new plan will also have an area for international foods, since 24 percent of Americans eat at least one ethnic meal a week, Mac Naughton said.

Supervalu is also pushing to focus on natural and organic products, which have become quite popular for mainstream grocers in the past few years after the rapid growth of specialty chains such as Whole Foods Market Inc.

While it certainly remains to be seen exactly how the chain expects to delight their shoppers, I'm hoping that they'll introduce some new innovations for making grocery shopping faster and more convenient (and you can always spot the good innovations because they spread through the whole industry like wildfire :)

Tags: digital signage, store experience, retail media, in-store media, merchandising, retail marketing, advertising, visual merchandising