Digital Signage Overview

It was a very strange month for the digital signage industry. Soon after the close of a surprisingly vibrant (given recent trends in trade show attendance) Digital Signage Expo in Las Vegas came word that Tesco, the U.K. retailer whose activity has been considered a worthy model for others to follow, was shutting down its in-store network. (The official word was that the network's hardware was outdated and energy-inefficient, and also that it simply wasn't turning a profit.)News of Tesco's action hit as Circuit City — an early adopter of digital media as an in-store marketing tool — was closing all its stores and almost simultaneously with word that another early pioneer, Virgin MegaStores, would close its six remaining U.S. locations by June. Also in February, it was officially disclosed that Meijer had abandoned its in-store network after failing to find a buyer to replace the original operator, which went out of business last summer. (See "Meijer, Nintendo ..." in Related Articles.)On the positive side, two U.S. retailers — Tween Brands and The Athlete's Foot — in February announced large-scale deployments of new digital networks.The disparity was in full evidence at the Digital Signage Expo, where representatives from Tween Brands new network joined a former Circuit City executive for a panel discussion entitled, "How to Increase Your Sales with Brand Participation in Digital Signage at Retail."Another sign of the current times was that another speaker -- Mike Hiatt, Walmart's director of in-store media networks -- noted from the podium that he had been among the 800 corporate staffers let go by the chain two weeks before the show.Still, a significant number of marketers braved corporate travel bans and cap-ex freezes to walk the show's aisles looking for ways to create unique in-store experiences -- window shopping, perhaps, but exploring the possibilities nonetheless.Gartner Inc. research director Gale Daikoku, whose Retail Industry Advisory Services Group is tracking adoption rates for 45 in-store technologies, suggested during one panel that digital signage deployment is ready for steady growth now that it has moved past the initial "hype" stage and even endured an inevitable period of post-hype backlash. She estimates, however, that mainstream adoption is between five and -- more likely -- 10 years away.That could be why one of the leading trends among industry suppliers at the show was a greater emphasis on tools for small and medium-sized businesses. "We're looking to lower the entry barriers," said Jeff Porter, executive vice president at Scala, Exton, PA, whose company now has a "software as a service" plan that, in conjunction with Carrollton, TX-based FastSigns, lets retailers rent digital signage packages on a monthly basis.The trend was most blatantly exemplified by Sidewalk Digital Networks, Chicago, which could be to this industry what Jacoby & Meyers is to the legal profession: "A single phone call gets you everything you need to create a digital signage network" for as little as $259 per month for a full package or $40 per month for just software and help-desk service.Another trend illustrated at the show is the continued effort to interactively connect digital signs with personal mobile devices -- to "link the big screen to the small screen," as DynaSign president Alex Wang put it. Hiatt listed it among three key developments for the future of digital signage, suggesting that retailers envision their stores as "a walk-in website" that can provide a variety of interactive possibilities.Hiatt also advised that digital networks need to develop a "purpose." Although advertising revenue can be used as the mechanism to fund a network, it should not be the primary purpose, he warned.Hiatt's third key to the future was the development of industry standards, a need illustrated in several other sessions where media agencies noted that the current uncoordinated state of the industry makes it extremely difficult to evaluate -- or even find -- existing networks.The need for better research on network effectiveness was also evident, never more so than after a keynote presentation based on results from an interesting but overly broad -- all out-of-home digital networks -- consumer study fielded back in 2007. The general consensus recommends a move beyond such traditional ad-industry measures as awareness, reach and frequency to metrics that truly assess engagement and response.One final theme at the show was the now widespread availability of 3-D graphics. Among the companies offering the requisite hardware and software tools were:3DFusion Corp., New York (www.3dfusion.com)Alioscopy, San Diego, CA (www.alioscopyusa.com)Samsung, Ridgefield Park, NJ (www.samsung.com)Tridelity Display Solutions, Jersey City, NJ (www.tridelity.com)Akira Digital Signage, Livermore, CA (www.akiradisplay.com)Magnetic 3D, New York (www.magnetic3D.com)Tatung Co. of America, Long Beach, CA (www.tatungusa.com)Elsewhere at the show:Brain Interaktiv, Edinburg, TX (www.brainscreens.com) offers Holovision, a rear-projection display system in which the screens are transparent adhesives suitable for glass windows or acrylic surfaces.Cabco, Schaumburg, IL (www.cabco.com), demonstrated the ad-delivering and toddler-pacifying capabilities of its TV Kart in the booth of partner PRN, San Francisco. (See "Digital Ads Go a la 'Kart' in Related Articles.)Displax Interactive Systems, Braga, Portugal (www.displax.com), demonstrated its Moovit interactive indoor floor display, which let floor-walkers take a soccer break. The company also showcased its Displax Window technology, which features a transparent, interactive screen with holographic projection capabilities.Internet Connectivity Group, Lake Forest, CA (www.icginfo.com), pitched what company executives call the "only" wireless operating system for digital networks. ICG claims that the wireless alternative can save a retailer at least 10% on hardware costs and dramatically speeds up the installation timeline. Because there are no connections, it also gives digital displays mobility within the store.Lift Visual Systems, Brookline, MA (www.liftvisual.com), offers 360-degree LED displays that hang from ceilings to allow viewing from a distance and any angle.MegaPhone, New York (www.playmegaphone.com), demonstrated its mobile-phone game technology, through which consumers can use any cell phone to dial into a multi-player game -- "whack-a-mole" was the example at the show -- playing out on digital screens. The technology will be implemented at GameStop in conjunction with CBS Outernet, the videogame chain's digital network operator.Quividi, Paris, France (www.quividi.com) also provides audience measurement services via standard cameras mounted on screens and online data collection/analysis. The audience remains anonymous and no video is ever recorded.Sapient, Miami, FL (www.sapient.com) set up shop in hardware partner Samsung's booth to showcase "U-Vending," a soda machine with a digital touch-screen front. Coca-Cola will be installing up to 1,000 of the machines in Miami area malls this year.Scala, Exton, PA, (www.scala.com) introduced Frame Media, which delivers a feed of news, weather and other content to digital photo frames for use at retail (on checkout counters, perhaps) or even in consumer residences. Users can pay a monthly service fee or have the costs waived by agreeing to accept paid advertising.TruMedia Technologies, Tampa, FL (www.tru-media.com), demonstrated its iCapture audience measurement system, which identifies the shoppers in front of digital screens and tailors the ad message accordingly. (Guys get the beer ad, women the cosmetics spots, for instance.)Westinghouse Digital Electronics, Santa Fe Springs, CA (www.wde.com), which provides the screens for AdtekMedia's PumpTop TV gas station network, unveiled a software system dubbed neonSource that delivers low costs (less than $3,000) and easy-to-use controls, making it feasible for small retailers to implement a digital signage program.

Digital Signage Overview

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