Digital Retailing Expo: Sharper Views of In-Store Video

The perpetually good news about in-store video networks is that the costs of enabling technologies -- plasma and LCD monitors, networking hardware, etc. -- continue to drop. But the drive to make further improvements in overall consumer response to such networks -- via the segmenting of network content for specific store zones, day parts or consumer mindsets, for example -- will likely require a much higher level of investment in other areas, like content production and management. Exactly how to take in-store video networks to the next level was the focus of attendees, seminar speakers and exhibitors gathered at the inaugural Digital Retailing Expo, held Oct. 11-12 in San Francisco. Content creation, technology and installation issues, and network funding were the primary topics of discussion.Content is (a Difficult) KingThe idea that content for in-store media networks can simply be "re-purposed" from existing assets available to a brand may be attractive from a financial standpoint, but case studies presented by seminar speakers suggested that consumers expect a higher level of sophistication and refinement in messages."It's really easy to do content. It's also really easy to do bad content," said Bradley Gleeson, ceo, ActiveLight, Poulsbo, WA. The message must integrate with the brand and leave consumers with a positive feeling afterwards, Gleeson said. Other speakers noted that merely showing graphics from a store's circular is a waste of the media's potential."The audience expects more than just Flash demos or text messages," said Rebecca Walt, managing director, retail sector, for Convergent Media Systems, Alpharetta, GA. "They want to see engaging graphics." They also favor content that offers helpful tips and advice delivered in warm, friendly tones, according to Bob Clarke, CEO, Instrumental & Applied TV, a consultancy in charge of developing the strategy and content for the Tesco TV rollout in the U.K. Extensive research during the rollout revealed consumer resistance to overtly aggressive brand messages, Clarke said.In fact, American marketers would probably be taken aback by how strongly Tesco downplays partner branding on the network, he said. With Tesco TV, the focus is always on helping the consumer and building the category, and any message that competes with Tesco's own brand or undermines its relationship with customers is verboten. It would be unthinkable, for example, for the Tesco TV network to feature bright visuals for a Shrek 2 Nesquick promotion, Clarke said. That simply wouldn't mesh with the overall tone of the network. Tesco also spends considerable time and money researching dwell times in different zones of the store and tailoring the content length and message for each. In any given five-minute loop, 4:20 is devoted strictly to Tesco promotions and price messages, and only 40 seconds to advertising. Developing content for departments with short dwell times is particularly challenging. In some cases, a message must connect with a consumer in three to five seconds, said Walt. Distilling a brand's message into such a short segment isn't currently a strength of traditional ad agencies, but new companies are getting up to speed in dealing with the tight requirements of the new media, she added.Technology & InstallationPositioning digital displays in a retail environment continues to require tradeoffs between what makes most sense for visual impact and what restrictions store operations impose on that placement. Some current systems such as Wal-Mart TV position screens overhead, but that is far from ideal, according to Jeff Porter, Scala Inc., Exton, PA. The ideal is to put them at eye-level, directly within sight lines. Techniques to wrap monitors in decorative bezels so they are fully integrated into the surrounding environment have also been employed, but compromises are routinely made. Clarke said Tesco's decision to place the monitors overhead in aisles was dictated by requirements of store operations. The role of audio is also subject to a similar set of tradeoffs. If it's too loud or repetitive, it will certainly annoy employees and potentially even customers who dwell long enough to hear a loop more than once. Tesco opted for a mixed approach, employing silent monitors near the checkout and deli, where employees are continuously within earshot, and voiceovers in warm, soothing tones in other sections.Emerging technologies that beam sound to very specific points offer another potential alternative, as noted by at least two panelists. The ability to localize sound to a spot directly in front of a screen, but make it inaudible a few feet away, would seem to be he best of both worlds.On the horizon as a function with great potential to increase the value of digital signage is the ability to tie networks into a retailer's point-of-sale data system to deliver real-time updates and price promotions to shoppers. Such concepts point to how robust the back-end infrastructure could get for these systems, and how far they could evolve from simply pushing simple Flash graphics up to a sign. Even the current crop of content management systems must be flexible and scalable enough to schedule ad inserts and content across hundreds of different locations and multiple day parts for each store.Funding and ROISome retailers view digital signage networks primarily as a way to enhance the shopping experience and differentiate their retail environment from their competitors'. Others view it as a potential way to generate ad revenue from vendors. Some, like Tesco TV, blend the two into something that is designed to be self-supporting without compromising the shopping experience.Kevin Brailsford, vp of store design, planning and merchandising for Blockbuster Entertainment, said that one of the current challenges facing the digital signage industry is to prove ROI without relying on help from co-op dollars.Brailsford noted that one of his fears is that the industry could fall prey to the store "kiosk phenomenon" of the early 1990s. That industry exploded on a wave of Internet-related hype, then contracted along with all the other rushed dot-com ventures. He hopes that the digital signage industry can avoid the same pitfall by making sure the technologies and research are proven solid before any costly failures make the climate too difficult for the industry as a whole. The meticulous methodology behind the Tesco TV network, with its extensive focus group research and tireless honing of content for separate store zones, may point to the level of research and retailer involvement necessary to make these networks viable long-term. Tesco and European retailers in general are perhaps more willing to experiment with leading-edge technologies than their U.S. counterparts, however, so it still remains to be seen how much more prolific in-store video networks can become in the states.

Digital Retailing Expo: Sharper Views of In-Store Video

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