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Digital signage 101, part 1

In the first of three parts, Scala executive vice president Jeff Porter gives an overview of the digital signage market, as well as a "Top 10" list of things to remember.

August 24, 2005

In a world full of TiVos, where viewers get a fiendish pleasure out of zapping commercials at every chance, it's not the same old game for Madison Avenue anymore. The fragmentation of mass media is forcing advertisers to chase an ever-diminishing slice of what once was a pretty simple mass market. The rules have now changed. A recent study showed that Tivo users skip 95.7 percent of all fast food commercials. How does the average brand manager then reach his audience? And amongst the myriad of choices for advertising, how can you know that you are getting a decent ROI? How can you guarantee your target audience is listening?

These realities in 2005 are forcing everyone to "think outside the house." Fortunately, there is a way to reach your audience that is exploding today. It's called Dynamic Digital Signage.

In the early days of "Retail TV" (we didn't really call it Digital Signage back thenÂ…at least not before the advent of large format plasma displays), companies such as PRN (who produce Wal-Mart TV) and NGN (who ran the now defunct 7-Eleven TV network), wrote their own software and developed their own proprietary hardware to control their network of screens. Nowadays, sophisticated systems are available using off-the-shelf industry standard hardware and software to enable a wide variety of applications for dynamic digital signage in vertical markets, such as:

• Digital pre-show advertising in movie theaters that replace the old 35mm slide shows
• Targeted advertising in pharmacies and doctors offices to promote OTC and prescription drugs.
• Customized branded in-bank TV that prevents competitors ads from showing up
• In-store video messaging that is 100% in sync with what is on sale TODAY at that store
• Displays on gas pumps or in c-stores to get people to buy something more than just gas
• Menu boards highlight the extra value meal (or extra profit meal) of the day
• Gate information displays that show the FAQ for each flight at the airport.
• Networked gaming in sports bars and casinos linked with an affinity card
• Interactive exhibits in museums that display the most up-to-date content automatically.
• Corporate information networks where the good news from HQ makes it out to the field
• Training programs where no one asks, "Who's got the training tape?"
• Concession displays at arenas and stadiums that automatically adjust to the venue schedule.

The uses for dynamic digital signage are limitless. Perhaps movies like Minority Report are a little over the top, but not really. This sort of targeted marketing is very possible today and might actually be showing up in a Gap store near you sooner than you think! And of course, the closer you can get to the point of purchase, the better your chances of influencing sales in a world where immediate gratification never seems to be fast enough. But how do you sort this all out?

I have a favorite Top 10 List when it comes to implementing a digital signage network right the first time. There are many different aspects that you must consider. Here's my list:

1. Content is King: everyone's favorite number 1. No matter how good your technology is, if the content sucks, your network will fail. Plain and simple. Advertise Charmin Toilet Paper in McDonalds while waiting for your Big Mac, and you will fail (as the folks from NGN discovered).

2. Make it lively: Engage your viewer with relevant content, and he'll be unlikely to "tune it out."

3. Local Buy-in is Critical: If the staff hate your channel, they will find a way to sabotage it. Repetitive audio is usually the biggest culprit here.

4. Location, location, location: It's true in real estate. It's true in digital signage. If the screens aren't in a place where people will notice them (such as 12 feet in the air), people won't notice them. Period.

5. Is it easy to do small updates? The key to a successful narrowcast network lies in your ability to easily target information to the right people at the right time. If you can only do monthly DVD updates, you really are missing the boat. If you can't easily change the price of an item across your network in 15 minutes or less, you've got the wrong platform. How much is that costing you?

6. Closed-loop systems are key. If you can't prove that your ads ran, you won't be able to get a lot of money for the advertising on your network.

7. Don't rely on SneakerNet. Humans are human. Take mistakes out of the equation. Use the network to remotely update all of your systems. Don't just send around DVDs because you can't get up enough courage to talk to the geeks in the IT department. Use the network!

8. Employee-oriented content is a powerful sales tool. While most people focus first on the customer facing screens, having subliminal employee communications will make a HUGE difference to communicate your brand and image internally. Face it; the days of the bulletin board are numbered.

9. Sell signage like end caps: Remember the vendors whose commercials are being zapped? They're looking to reallocate that advertising money somewhere else. You have the brands in your store. Leverage that. Get them to find NEW co-op dollars to sponsor an end-cap or a special targeted promotion on your network. It works better and costs less than what they are doing today.

10. Don't fight the PC industry. Use industry-standard hardware. Low volume proprietary MPEG players just won't keep up with the price/performance of your average low cost PC.

11. Does it scale? Anyone can do a pilot. Brute force and ignorance can easily do this. What happens when you need to roll out 5,000? Pick an architecture THE FIRST TIME that is flexible enough to grow with your needs without having to replace the system later. (My apologies for extending my Top 10 list to 11 items!)

ABOUT THE AUTHOR

Jeff Porter is executive vice president of Scala, Inc., supplier of software solutions for dynamic signage networks. Mr. Porter has been employed by Scala in various capacities since 1994. Scala today has over 20,000 units deployed worldwide. Scala's InfoChannel 3 software suite is an off-the-shelf solution for dynamic signage networks and is in its third generation release. Prior to Scala, Commodore International Limited employed Mr. Porter, where he was responsible for worldwide product development of the Amiga computer from 1984 to 1994. He previously worked for AT&T Bell Labs and The Eastman Kodak Company. Mr. Porter holds a Masters degree in Engineering from the University of Illinois and a BSEE from Purdue University.