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While Digital Signage is still a small part in the overall
cake of the media mix of the big advertisers, the industry has already gone
through a long learning curve of many years. It is clear that Digital Signage
is mainly driven by the typical retail applications in the large store networks,
such as EDEKA, Tesco, Carrefour, etc., however, one should not under-estimate
the value of all the other vertical market applications, such as hospitality,
ambient, corporate internal communication systems.
Typical
digital signage retail application in large store networks
While the other vertical applications are pure information
systems with no clear business model, in the retail market application, there is
only one fact which governs the success at the end of the day: the solid
financial, long term achievement under following aspects:
Break-Even point
Return Investment
Long term profitability
There are several
factors which impact the financial arithmetic and success of a DS rollout. The
ultimate goal of a DS network in retail is to sell more and to bind your clients
to your brand.
1.
Content is King: it's not a slogan, it's a fact. You may invest in
the highest tech hardware and software, if you don't broadcast professional
content which pays tribute to the DS media, don't broadcast at all it will not
be watched or simply watched in-effectively. Note that a DS network is not
simply a TV network where TV ads can be played.
It's about the user experience: it doesn't
matter how the signals get there, on what display the clip is being presented.
All that matters is that the consumer pays attention, has a memorable experience
with a lasting impact.
2.
Mix advertizing with information: Use the system not only to sell:
mix added value into the content, such as news tickers, weather info, etc.
Content is all the user should see and experience with a wow:
Digital signage installation in public bathrooms and mirrors
3.
Engage: Increase the duration of watching by engaging the customer
with questions, quizzes, humoristic sections, etc.
4.
Architectural Esthetics: The display should naturally integrate
into the environment. The display should be perceived as part of the overall
marketing and design concept.
5.
At Eye Level: Make sure the displays are being positioned in the
natural flow of the eye movement. The majority of consumers follow an accurate
pattern with their eyes when they enter a shop follow this pattern with the
display placement.
Engage the customer. Make your digital signage content entertaining
with quizzes, humoristic sections, etc
6.
Guide Customers: Efficient DS systems use the network to guide the
customer to where they need to be. In Russian retail stores, alcohol contributes
20% or more to the profit of a shop. Hence, the systems are used to drive
consumers with a separate channel to the alcohol section, normally in the far
end of a store.
Increase sales by guiding customers to special offers inside the store
7.
Constant Control of TCO: The total cost of ownership is often
under-estimated. While it does not matter at all to the consumer how the content
is brought in front of him, to the operator it is critical to use most cost
efficient technology to do so. The nature of cost efficiency is not cheap.
The measure is much more the efficiency. If you compare displays, they are all
built with the same panels originating from few factories in Far East. The
difference is made by what surrounds the display, such as manageability via
serial ports, modularity, such as an option slot, MTBF standing for life
expectation, and other added value functions which turn the screen into a more
intelligent device in the supply chain. Same applies for last mile distribution
technology over CAT5 do I use a low cost solution from Far East or rather a
high end solution from the market leader, which also allows me to control a
display remotely, switch in off when not in use, read out its status of
operation, etc. Do I use a remote access technology to control the media players
remotely, hence reducing maintenance reaction time when there is a problem? More
is less.
8.
Allow for easy maintenance: the player PCs and displays are
mission critical, availability is key; otherwise the advertisers don't pay the
bill. Place all player PCs in a central room, backrack it in a cabinet, managed
by state of the art KVM and remote access technology. This way you will avoid
technicians climbing the ladder in the midst of the sales floor. You will be
able to access the player PCs remotely from a central location, at zero
intervention time, resulting into a high availability of the system.
Players safely kept in a rack in the server room allow
easier maintenance, service and upgrading. The content is distributed via CAT5
cabling.
9.
Avoid duplication: use only the number of channels really required. Don't
fall in the trap of the false vision of having individual messages per screen.
This cannot be managed, purely from a content's perspective just imagine a
network with 1500 displays, each to be managed independently. In most cases in
the retail environment single channel, at the maximum dual channels are being
deployed. Rather keep the content updated and changing at a high frequency. Use
single player per location, duplicate the signals using last mile distribution
technology over CAT5.
10.
Keep the system green: pro-actively manage the system, switch in off when
not in use, reduce brightness where possible. It will result in direct benefits,
such as doubling life expectation of the display, lower power consumption, etc.
There are plenty of solutions in the market allowing you to manage power of the
net, access the serial interfaces of the displays remotely, etc.
Switch off when not in use: there are solutions in the market that allow
the remote power management of the net and the access of the serial interfaces
of the displays
Clearly, there is
not just one way or method of rolling out a digital signage network. However, if
you follow some of the more basic rules and patterns, there is a high chance of
turning it into a successful and profitable rollout.
---
Ronni Guggenheim is managing the European operations of
Minicom Advanced Sytems, a pioneer in the digital signage industry and market
leader for last mile distribution products over CAT5 technology. With over
250,000 points of display rolled out in the world, Minicom has been a driving
force in pushing the digital signage market to today's maturity. Ronni
Guggenheim has been actively promoting and networking for the industries
success. Having been involved in a large number of rollouts, his rich experience
and know-how has been valuable as keynote-speaker at various events, conferences
and in various articles and publications.
Ronni Guggenheim
President Minicom Europe
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