Display Technologies: Can You Afford Them?

The technologies available to marketers have grown exponentially in recent years. Wireless signage, cell phone technology, touchscreens and all sorts of eye-catching, interactive displays are being offered -- and new developments always are on the way. But can marketers afford it? Can they make effective use of these systems?"There is a palette of technologies available, and what you use depends entirely on several factors," explains Craig Martin, president of Reality Interactive in New York. "The key point is the message to be had and what the user's experience is supposed to be," he says. "It's important to sit back early and ask what you're trying to accomplish. What is the value proposition? If you don't do this, you'll fail because you haven't given the consumer enough value."There are five factors to consider when deciding what technology to incorporate into a merchandising program, says Paul Miller, executive vice president of marketing and design for Southwood Industries, a New York-based strategic partner of International Paper Co. They are budget constraints, timing, appropriate brand credibility and identity, appropriate location and appropriate function. The final three target the audiences whose needs must be met: marketer, retailer and consumer.Often, Martin stresses, programs are created backwards. "Clients find a piece of technology that they think is cool, and they want to use it -- somehow. But from a merchandising standpoint, consumers are making a purchasing decision, and the technology has to help them feel comfortable making that decision." That comfort level can be reached through on-screen information, a printout, a demo or an interactive mechanism to make the consumer feel closer to the product, he says.Miller adds, "Marketers will come up with a program so they can make their mark personally and stand out in the company. If they aren't using 'cool stuff,' they won't progress." Although they want to use new technology for impact, they don't always know if that technology is optimal.Comes With a PriceThe cost of technology remains a red flag for some CPG companies. "Marketers are being confronted by so many choices in technology, it's hard to figure what makes sense, especially when you look at the dramatic difference that the costs can make," Martin says. "Displays had cost $18, now all of a sudden they're $600 with all the pieces of gear they want included. It doesn't fly."According to Martin, ballpark costs of some technologies are:Digital merchandisers (small, shelf-edge screens with flash animation): $1,200, depending on screen resolution and size. Kiosks: $2,000 to $7,000, depending on enclosure and peripherals (printer etc.). LED screens: $5 to $20 for a backlit logo that can be added to a display. Sound cards: $20 to $50 for a 20-second clip.Michael Lavilla, president of Retail Vanguard in Tampa, FL, which has produced a variety of kiosk-based merchandising programs, says costs are coming down for hardware such as kiosks, touchscreens and digital signage. "The manufacturers and display makers are learning lessons in the field and are not reinventing the wheel each time."Martin says the ultimate goal is that the cost of adding technology to a display will create at least a proportionate incremental addition in profit from added sales. Youth Factor One of the key uses for technology is to sell technology, notes Retail Vanguard's Lavilla. "We're seeing much more technology used, particularly in youth-oriented markets," he says. In part, that's because young consumers adapt to these technologies quickly and are attracted to them. The products being sold to this market also may demand higher-tech presentations.High-quality technology has helped VTech Inc., Arlington Heights, IL, get out the appropriate message, says Julia Fitzgerald, vice president of marketing. The company produced two versions of the demonstration display for its V. Smile educational video game program during the holidays: One was a battery-powered version for most retailers, the other was an AC-powered version for Toys "R" Us. Both featured a high-end LCD screen to simulate the look of a TV screen."The screen had to be comparable to what you would see at home. If the demo runs slow because it's cheaped out or low-grade, the impression is that the software will be like that. We didn't want the demonstration to be hurt by a low-grade LCD screen," she says. The quality of the technology also imputes an image to the company, she notes. "We want to get across that VTech toys are just like our displays -- they're built to last."'Ring' in SalesHow telephones are being used demonstrates the variety of available technological options and the ways they can be used to express an in-store message. A variety of interactions via the phone are possible, notes Michael Zirngibl, president of Angel.com, McLean, VA. For instance, voice-recognition programs could enable consumers to ask particular questions and hear responses by a product endorser or request a coupon. (Note: Angel.com and adidas America Inc. recently used such a tactic to introduce a soccer shoe endorsed by David Beckham.) CompUSA is creating an interactive phone-based service that it expects to go live later this spring, according to Jim Paddock, vice president of store planning for the chain. The company plans to create a fixture that offers hot-line phones for customers interested in buying networking solutions. By selecting one of three suppliers and picking up the phone, consumers will be connected to a technician who can discuss the products and walk them through the products' benefits. Customers also will be able to schedule an appointment for an installer to come to their home.For such products as digital-imaging solutions, kiosks that can demonstrate digital cameras and printers have been effective, Paddock says.A wireless camera phone also can serve as the conduit for supplemental visuals during a shopping trip, thanks to the "watermark" technology available from Digimarc Corp. and its Digimarc Mobile initiative. The system enables the phone to make a photo of a specific image on a product or its package and automatically be connected via wireless Internet to any sort of additional information the manufacturer wants to provide. The material can be digital entertainment, location-based content or catalog ordering, explains Andy Mallinger, director of product marketing for imaging solutions at the Beaverton, OR-based company."The saturation level of cell phones with cameras makes this idea feasible -- the market is exploding," he says. Asia and Europe are further along in using this approach to in-store information, he notes, as their use of wireless phones is ahead of America's. BMW of North America, Woodcliff Lake, NJ, produced kiosks with wireless cell-phone technology for its X3 sports-activity vehicle. The kiosks have been placed in high-end retailers such as Virgin Megastores since their introduction in late 2003. "The wireless technology allowed us to manage the content remotely and put out information ahead of the launch and then update it as we got closer," says Bob Plante, manager of kiosk programs.The company has improved the kiosks' performance in recent months, he notes. A consumer who requests information at the kiosk, for example, now has an e-mail waiting for him at home when he returns, thanking him for his interest. The key to using such technology successfully depends on the goals, Plante stresses. "You have to ask what it is worth to reach your customers with this message, how you are doing it now and whether that approach is effective," he says. "I believe that with a lot of products, if you demonstrate them on video, they will fly out the door. It's much more effective than having minimum-wage help that isn't as well-versed and has high turnover."Here are some technologies entering the market and becoming key weapons in the marketers' in-store arsenal:Lenticular: Three-dimensional images are continuing to improve, with sharper graphics, more levels of depth, larger sizes and lower costs. Big3D.com, Fresno, CA, for instance, has produced a substrate that can print images as large as 47 by 63 inches through sheet-fed presses. Sound: Sound domes, in which focused sound can be heard only within an enclosed overhead environment, block ambient sounds in loud environments, and focused sound beams direct audio to a pinpoint space, such as in front of a display.Lighting: Montreal's Digi-Charm Inc. produces Micropop displays and Microtags, which use Organic Light-Emitting Diodes (OLED) panels that can be built into displays, store shelves and packaging. The displays can present animation, video, text and images.Video screens: The UK's Tesco has created zoned programs that allow it to feature specific presentations in different departments in the stores. Within Tesco, seven channels map to seven areas.Touchscreens: Advanced screen technology enables consumers to control what is presented. In some cases, this can be done through a plate-glass window, so customers on the street activate equipment inside the store. In one recent application, a 42-inch interactive touchscreen was used alongside Spider-Man 2 displays at Broadway Circuit Cinemas in Hong Kong.Also, Reactrix Systems, San Carlos, CA, has introduced interactive screens for floors or walls that respond to motion to show computer-animated presentations. Consumers also can wave their hands across the image to produce ripples or special effects.Philips Design in Atlanta has begun experimenting with key-fob devices that use Bluetooth technology. They allow customers to establish permission levels to their personal information at a retailer's Web site. The device is carried on the customer's key chain and is triggered in-store to display content relevant to the passers-by and rooted in their previously set permission level. Digital signs: The latest versions of updatable, programmable wireless signs offer color options, more complex messaging and lower energy use. A new version from Magink Display Technologies, New York, for instance, can generate any color based on the amount of energy impulse the chemical paste receives. These signs, which can be paper-thin and as small as a channel strip, can create flexible options that can be changed quickly from a central location.Real OpportunityThe key to making all of these technologies effective comes in measuring their impact."Products where IT and entertainment come together need to find technologies to paint a picture for the consumer," says CompUSA's Paddock. "Most people today don't know what can be done with media centers that combine receivers, TiVo, a PC, DVD and wireless extenders. But finding a way to explain the benefits in the store is difficult. No retailer has done it well."Many of these ideas must await more testing, lower production costs and better understanding to become commonplace, however."There is real growth opportunity for many of these technologies," notes Lavilla, "but that's really a polite way of saying that there's not a lot of use in the market for them yet."

Display Technologies: Can You Afford Them?

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