Digital Signage: Hybrid, Interactive Systems Amplify Marketing Impact

The marriage of interactive kiosk technology with digital signage opens a world of possibilities to the smart marketer.

A new trend in digital signage is emerging that combines the strength of digital signs with the interactivity of digital kiosks. For many areas, such as retail shops, the sum of the two holds greater potential for marketers than either of the individual parts.

Known in some circles as hybrid digital signs and by others as interactive digital signage, these combo systems can capture the attention of those nearby by playing back compelling linear content -for example an enticing commercial or news feed- and immediately switching to an interactive mode when triggered by an external input, such as the touch of a viewer, the mere presence of a passerby or even environmental conditions.

Like a standalone digital sign, a hybrid system allows communicators to playback a pre-built sequence of elements, including video files, graphics, text, animation and live television. Those staples of digital signage are the makings of an effective message that entices interaction with the very flat panel on which the content plays.

Once viewers touch the panel or step within its proximity, the hybrid sign automatically interrupts linear content playback and displays a digital kiosk-like interface that lets a shopper touch hot spots on the screen, launching a pre-built interactive branching presentation. Navigating through the presentation, shoppers can find the information they want like product recommendations, pricing and availability.

Depending upon the level of sophistication needed, such hybrid interactive presentations can link to company's servers, pulling information needed for the presentation and collecting information about the consumer that can be stored on the server.

For instance, a hybrid system at an automotive retailer could send an inquiry to the store's server to access a database of recommended filters and oil viscosity specified by each car manufacturer. Matching information the customer entered about his car with the recommendations in the database, the system could check inventory for the right products, retrieve availability and pricing and present the information to the shopper standing at the hybrid sign.

Prior to offering that information, the system could ask the shopper to enter his name and address and to grant permission to be notified of future specials. With that data saved on the server, the retailer's marketing department can automatically send out coupons for oil and filters when next estimated time for an oil change rolls around.

What enticed the shopper to touch the screen in the first place? Perhaps it was a video playing back in linear digital signage mode of a favorite racecar driver discussing why it's important to stay current on oil changes.

On the front end of customer interaction, the hybrid system cast a wide net, cycling through a playlist of content designed to sell oil, followed by tires, then batteries, air filters -the list goes on an on. Each linear segment is backed up by an interactive kiosk component that's triggered when a shopper's curiosity is piqued by one of these linear presentations and touches the screen. On the back end, the system uses data that's collected to stay in touch with shoppers once they leave the store, offering special incentives to have them return. In essence, hybrid digital signage can help to extend the marketing reach of a retailer well beyond arm's length from the display panel and into the homes of shoppers who are willing to interact.

Interactivity doesn't have to begin with a human touch either. Imagine a hybrid digital signage system in a ski shop at the base of mountain. Skiers donning their boots and gloves might see a digital sign in passing as it plays back linear content; however, their attention might be focused when temperature, wind and solar sensors at the top of the mountain report conditions and trigger specific presentations. Lots of sun could call up reminders about needing sun screen. Heavy snow might trigger another presentation that makes them think twice about leaving the store before having the right gloves or goggles.

The possibilities for interactive, hybrid digital signage are only as limited as the imagination of creative marketers. To be sure, this aspect of the digital signage market is in its infancy. However, with the recent availability of the hardware and software needed to bring together the separate worlds of kiosks and digital signage, hybrid systems will certainly play an important roll in the unfolding digital signage market.

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Digital Signage Growth to Propel Marketers into Orbit

Imagine you were an astronaut aboard the International Space Station. On a clear day you look to the earth below at the exact moment your celestial home zips over Manhattan. As you gaze down at the New York City borough, you are stunned by what you see: an enormous sign covering about 75 percent of the landmass of the borough reading "Come Home Soon! We Miss You."

This out of this world scenario is exactly what would happen if it were magically possible to position the viewable area of all the flat panel displays produced in 2006 next to each other over the landmass of Manhattan. Incredibly, that translates into 16.8 square miles!

The figure, part of the DisplaySearch's Q4'06 issue of its "Quarterly Worldwide FPD Report," underscores how dominant flat panel displays are becoming. According to DisplaySearch, the number of flat panel displays shipped was expected to rise 6 percent to 3.4 billion. (Remember, there are a lot of laptops, cell phones and other handheld devices that use LCD flat panel displays.)

The report estimates that flat panel TVs accounted for 33 percent of all televisions sold in 2006. In this country, with the government mandate forcing set makers to include DTV tuners in their sets kicking in next month and the introduction of legislation in Congress mandating retailers, broadcasters, and cable and satellite operators take steps to educate consumers about the impending analog switchoff, the demand for flat panel TVs is only likely to accelerate further -especially given the falling price of these flat panel sets.

In 2006, consumers got more display for their dollar, especially when it came to LCD sets. The price of a square meter of LCD display fell 32 percent year over year in the third quarter of 2006, according to the report. Not surprisingly, the amount of LCD viewing area shipped grew 54 percent in the same period. That helped to propel LCD to the lion's share of the flat panel display market, accounting for nearly 86 percent of all flat panel viewing area shipped, said DisplaySearch.

Plasmas accounted for 8.5 percent of total flat panel display area in the third quarter '06. Year over year, total plasma display area shipped grew 56 percent as of Q3 '06.

The implications of the DisplaySearch statistics for those wishing to use flat panels to meet their digital signage display requirements are significant. For marketing departments needing to justify the expense of digital signage systems, falling prices should make the task a bit easier.

More importantly from a strategic point of view, the rapid acceptance of flat panel displays by consumers means marketing messages played back on digital signage networks don't look out of the ordinary. They fit into the video mainstream. To consumers, they look just like television, and after all in today's world isn't TV the arbiter of reality?

The downside to the growing presence of flat panel sets in the homes of Americans is that the displays are becoming ever more familiar. Some of the mystique may soon begin to wear off. However, successful digital signage network operators, like their TV counterparts, know that ultimately content is king. As long as digital signage content compels its audience to stop, watch and take a desired action no amount of flat panel familiarity can stand in the way.

Ultimately, it is compelling content on these increasingly ubiquitous flat panels that will help marketers and advertisers using digital signage to influence the public to take the actions they desire. Resulting sales should be out-of-this world.

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Digital Signage: Getting Your Content Right Builds Credibility

Although digital signs look a lot like TV, they're actually a form of business communication that reflects on your organization.

I recently received an email from a friend that made me think about how important accuracy is when communicating on a digital sign and how difficult it can be to attain.

The email said in part:

"I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid Aoccdrnig to rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is that the frist and lsat ltteer be in the rghit pclae."

I don't know whether or not Cambridge University research actually found that as long as the first and last letters of a word are in the right place, the rest of the letters can be scrambled and the brain will figure it all out. What I do know is this phenomenon can make it extremely difficult to ensure you correctly spell words that appear on your digital sign.

Just ask copyeditors or proofreaders about the typos and misspellings they find every day in submitted manuscripts. They're common -even when the most talented authors submit works. Now think about the fleeting nature of the messaging on a digital sign, the fact that it's generated on a computer screen and not the printed page, and the hurry-up nature of creating such content and it's easy to see that consistently producing accurate messaging can be difficult.

Certainly those who are creating digital signage messaging can rely on technology to help. Where would we be without the spell check function? However, anyone whoever spends much time wordsmithing knows spell checks are only so good. They often confuse words, are befuddled by homophones -what is the difference between "compliment" and "complement"  or "I'll," "aisle" and "isle" anyway?- and don't offer any help with many names, places or technical words and jargon.

True enough, Ralph Waldo Emerson wrote: "A foolish consistency is the hobgoblins of little minds...." But he wasn't talking about consistency in spelling, grammar and usage.

I'll be the first to say I've made my share of mistakes over the years: using "wreckless" instead of "reckless,"  "irregardless" in place of "regardless," or just flat out overlooking jumbled spellings for the same reason that my friend's email was readable. But that's no reason to excuse such gaffes. When errors occur, I try to learn from them, avoid them in the future and move on. But moving on shouldn't be mistaken for disregard for accuracy.

Accuracy in business communications is vital. What would be the consequences of a title company inaccurately referencing a plot of land or a bank inaccurately recording a Social Security Number?

It's easy to see digital signage as an extension of television. After all, it uses the same sort of display, graphics and video as a television. But really, digital signage is just another business communications medium -one that makes a statement about the company in general and by extension the care with which management runs its organization.

Who could fault visitors to a corporation for wondering about that organization if the digital sign in the lobby welcoming them misspells their names? What would go through a driver's head if the digital sign in a car dealer's repair department said "We or committed to quality?"

After all, when it comes to business communication in general and digital signs in particular: "cnsincetsy in ugsae and aacrccuy in gmmraar are not the hglibobons of ltltie mdnis."

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Digital Signage Market Poised to Skyrocket

Well it appears that the 800-pound gorilla Google has set its sights set on the digital signage market.

NewScientist.com broke the story earlier this month that the search-engine company has filed for a patent on a way to divvy up ads on a network of electronic signs. The ideas seems to be to give retailers and others a simple way to organize an advertising campaign to promote inventory on, for example, a digital signage network display or displays near their stores in a mall.

Just as Google allows advertisers on the search engine to specify characteristics of their online ad campaigns, such as what keywords to use, how much money to spend, and what to say in ads, the new Google system is likely to give retailers a way to get very specific about what product is advertised, how and where it’s advertised and how much will be spent to advertise it.

Granted, Google is only at the patent filing stage, and it’s much too soon to discuss this approach in detail. However, that’s not what’s important. The point is that Google’s approach is another sign that digital signage networks are organizing into a market that can be meaningful to advertisers. Google’s patent filing is further evidence digital signage is quickly transforming from an amorphous marketing concept into a concrete, definable reality.

Like the November ’06 Screen Association announcement of the first directory of UK-based digital signage networks that accept third-party advertising and the news a month later of the formation of Nielsen In-Store to help marketers quantify in-store audiences, the Google patent move is a further indicator that digital signage networks are coming of age as a legitimate, quantifiable ad medium.

Another is the financial health of the out-of-home advertising market, which in 2007 is expected to be the second fastest growing advertising medium behind the Internet. A New Year’s Day article at MediaWeek.com quotes a forecast from private equity and mezzanine capital investment firm Veronis Suhler Stevenson as saying the out-of-home ad market will grow 6.7 percent to $7.25 billion, following a 7.9 percent growth rate in 2006. It goes on to say PricewaterhouseCoopers projects even stronger growth of 7.9 percent for 2007.

To be sure, out-of-home advertising encompasses many things, like digital and conventional billboards, cinema and mobile (i.e. bus, taxi, etc.) However, it also includes digital signage networks, which surely will stake out a growing piece of the out-of-home ad pie as they organize further into a media buy individual companies and ad agencies can measure and understand.

That could not come at a better time as ad agencies and ad buyers increasingly question how effective their traditional television and print ads are. Digital video recorders (DVRs) and video on demand are giving television viewers more control over what they watch and when. Zapping commercials –fast forwarding past them- continues to grow along with consumer uptake of digital video recorders.

Newspapers aren’t delivering the audience they once did. Circulation is down nationwide and that’s taking its toll on the commercial value of the medium. One need look no further than McClatchy Co.’s sale of the Minneapolis Star Tribune for about half of the $1.2 billion purchase price the publishing company paid in 1998 to see the impact of falling circulation.

All of these factors –including the congealing of digital signage networks into a quantifiable market, new convenient ways for retailers to ties their inventories to ads on digital signs near their stores, TV commercial zapping and the decline in newspaper circulation-  point out that digital signage advertising is poised to skyrocket to new heights in 2007.

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