Digital Signage can be Complex

This
Whitepaper explains some of the key though processes
you should go through before you get started…….
Dynamic Digital Signage
is popping up everywhere. Retailers such as Tesco
use signage to coordinate the weekly specials from
the newspaper with the on-screen messaging in the
store. Wal-Mart has a network of in-store TVs to
promote "what's new". Movie Theatre owners such as
Regal Cinemedia use a satellite network of digital
projectors to entertain and advertise before the
feature film starts. Fast food operators such as
McDonalds have experimented with digital menu boards
to motivate sales. Grocery stores such as ShopRite
use plasma screens behind the deli counter to inform
customers on the special of the day, and entertain
customers while waiting. Even relatively innocuous
locations such as your local bank or your doctor's
waiting room, are likely to have a digital display
network to inform, educate, entertain and promote
products and services relevant to that venue.
But what does it take
to make this all work? Getting the traditional
advertising or visual merchandising people, who have
a large share of the clients, together with the IT
and display specialists can be challenging. It's not
normal for these two groups to speak with each
other! And even when they do, have they considered
ALL of the ramifications that are necessary to have
a successful deployment? For example: Many times,
the Content Management that ensures successfully
content play-out is not even considered, as everyone
is focused on big-ticket items like plasma screens
or networking. Content Management is actually one of
the most critical components to operating a
profitable and successful network on a day-to-day
basis. The good news is that Innov8 have been
through the Mill already !!
Here is a list of
things to consider.
CONTENT IS KEY:
It is amazing how many people are still over
looking how important content is. Content MUST be
lively, relevant and appealing. It's not TV. It's
not the web. It's signage. You can't just have the
same advertising 24 hours a day. And it MUST be
relevant to where the customer is and what he or she
is doing. For example, you could have a network in a
fast food chain that has some very nice LCD screens,
but instead of up selling the customer on the new
menu item, they have ads for toilet paper. What does
this have to do with fast food? Is this the
impression you want to give your customer? Of course
not. Wouldn't you rather find out about the new menu
items as a customer? And as a venue owner, wouldn't
you rather up sell your customer to increase your
revenue per customer? Of course. The customer's
wallet is open. Go for the up-sell!
And you need to be
sensitive to WHERE your customer is. You must
have a system that is able to generate
individualized content easily and cost effectively.
If your system is only able to play MPEGs, how can
you afford to create unique videos for each store?
And if all of your content is MPEG, how can you
afford to SEND the content. Five hundred stores
needing 1 gigabyte of MPEG video each month is 500GB
of traffic on your network. Few retailers have this
kind of "spare bandwidth lying around". You might
want to consider a satellite multicast network. You
also might want to look carefully at your software,
to efficiently produce lower bandwidth content more
easily.
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MAKE YOUR CONTENT
LIVELY: If your content looks like TV, people
will not pay attention. Your employees will hate the
repetitive nature of the loop. It just won't work.
You might want to consider a system that allows you
to interface your signage easily to your
point-of-sale system, inventory management system,
web store, etc. This way your screens can
automatically adjust their price with little or no
manual intervention. This allows you to directly
advertise the same products in different stores for
different prices to maximize your profits. If your
signage network doesn't have a call to action, "buy
now for this price", it might not be that effective
in retail. Providing national, regional, and
local content can also be a way to make your system
more interesting. This sounds simple, but have you
done that before and is your system capable of that?
What impact does this have on your production costs?
Can you make changes without re-encoding your MPEG
files? What impact does that have on the bandwidth
requirements when you now need to do national,
regional and local insertion?
LOCAL BUY-IN IS
CRITICAL: With a system that is able to do
national, regional, and local insertion, we're now
able to have participation at a store-by-store
level. Take a grocery store for instance. Imagine
being able to have the Store Manager's picture on
the screen welcoming you to his store, or perhaps
Betty from the Deli department welcoming you to her
part of the store. Perhaps the Manager can add an
unadvertised special that he needs to move. Perhaps
the bananas are looking a bit ripe, and he's not
looking to have a sale on banana bread any time
soon. How can he push the things at a local level?
Will the signage system that you choose empower the
local staff to work WITH you, not against you? If
the employees are a part of the network, it provides
a sense on ownership and pride to your staff, and
more importantly to you, they won't try to sabotage
the network. Imagine a system in the same grocery
store where the screens are at the checkouts (with a
really short loop time because your customers have a
short dwell time in line), but the audio with that
system is so obnoxious that it drives the checkout
people mad. They will find a way to cut the speaker
wires, or worse yet, pull the plug on the entire
system. On top of that, I'm guessing that you've
just grabbed whatever TV commercials you happen to
have lying around, and the content WOULD NOT WORK
WITHOUT AUDIO. Major problem. Don't forget
rule number one again... what is your content? Are
people going to "get out of line" to go back and
pick up the thing that you are advertising? Guess
again. The products better be within arms reach at
the checkout. Chewing gum and breath mints might be
good sponsors for this screen, but you should
create specialised content that works without audio,
and better yet, provide some other localized content
that might be of interest to your shoppers. Maybe
there's a community bulletin board announcement on
the system. All of these things can make a huge
difference in the success of your network.
YOU'VE GOT TO HAVE A
HOOK: This sounds
simple enough, but unless you have a reason to look
at the screen, NO ONE WILL LOOK AT THE SCREEN! You
need a "hook" - a reason to look at the screen. It
could be as simple as a "Now Serving Ticket number
25 at counter number 3" or as sophisticated as a
customised News Feed coming in over satellite, the news, weather,
sports and stock headline news four times a day that
could be interspersed with your venue specific
content and advertising. How easily does your system
integrate with these sorts of "hooks"?
Proper placement of the screens with
the appropriate content is absolutely critical. No
one is going to strain his or her neck to look 12
feet up in the air at a cheap TV set. Screens by the
check out are "too late" unless you're selling
chewing gum or breath mints. Find a location where
people need to visit or have a natural waiting time
and, hopefully, your content will be able to
influence purchase decision at the last minute while
improving the overall customer experience.
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YOU MUST HAVE A
CLOSED LOOP SYSTEM: One of the key drivers in terms
of a network of advertising based displays is the
revenue you can expect to get from the ads. This is
measured in CPM (cost per thousand viewers). Some
signage networks have failed in the past because
they were not able to get a high enough CPM to cover
their costs. Obviously having a cost effective
network is key, but don't forget that this should
not jeopardize your CPMs. The best way to achieve
higher CPMs with advertisers is to be able to prove
to them with affidavits that the ads actually ran as
scheduled, with full ability to drill down to a
specific ad in a specific location. In order to
support this, you'll need a two-way network to
return those "billing logs" and to roll that up into
a report that can be sliced and diced by the
advertiser. Having a cheaper one-way satellite
network with no return might sound good to your CFO,
but it may have an adverse impact on your ability to
charge a premium CPM because you can't prove that
any ads ran. And you will need the back office
system to keep track of this for billing purposes as
well. Make sure you look into this aspect when
choosing a system. Having a full two-way network
also brings the possibility of continuous monitoring
of your network. Your Network Operations people can
then pro-actively respond to a fault in the network,
instead of waiting for the phone to ring (if anyone
bothers to call at all with a one-way network).
With a DVD or VHS
network you are very prone to human errors. Plus, because the system
is not connected, you have no billing data to
confirm play-out, so
your CPMs are very low. Making the content in the
first place is very expensive (burning DVDs) and you
can really only afford to do this once per month. If
you run weekly specials, it's impossible to
advertise those on your screens because you're
running the same loop every week for a month. With a
networked system, you'll be able to change this on
the fly easily and have completely synchronized
media campaigns, both in-store and in-home. Let's
hope that your creative team doesn't make a typo
with your DVDs, because re-burning hundreds of DVDs
and sending them out is time consuming and
expensive. On top of that, your average cheap
consumer DVD player is only rated for about 2000
hours of operation. So plan on swapping out burned
out DVD players every 3 or 4 months. Consider the video quality. If you are driving a
plasma screen with a DVD player over composite
video, the picture is going to look
fuzzy. This is true for even many networked MPEG
players. If you're driving your screens in a
one-to-one pixel ratio from a VGA based PC, the
clarity of the resulting image is going to be much better.
DO MORE THAN JUST ONE
THING: As long as you are deploying a signage network
for your customers, why not consider using the same
infrastructure for employee information or employee
training? A number of deployments have found that the
employee facing screens have done a more significant
job of influencing purchasing decisions than the
customer facing screens! Think about it. You have a
high turn over of staff. Your customers need to ask
one of your employees a question. Even modest
amounts of subliminal training from your signage
network can educate your staff enough to be a genius
in the eyes of your customer. With an even more
proactive training initiative using the same
infrastructure, you can track exactly who has, and
who has not, watched the training videos (which are
now digital so that the tapes don't get lost). Don't forget the employee angle of a signage
network. Maybe it's just an hour before the store
opens. Maybe it's interspersed throughout the day.
Maybe the CEO wants to do a live broadcast to all
the employees in each store before it opens. You
could even have live events in-stores. A few years
ago, Wal-Mart broadcast live a Faith Hill concert in
all of their stores. Reportedly, this was the single
largest take in Wal-Mart's history. This was a major
event, and was only possible because they were able
to re-use their existing signage network. Perhaps
you were looking at doing some interactive kiosks.
Perhaps you'd like to speed up your credit card
transactions (instead of dial-up phone lines today).
Why not hook them into the same infrastructure? Your
signage network can be the catalyst for many
powerful things, which all help to offset the
investment.
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YOU CAN'T PUT A DISH
EVERYWHERE: While some of these advanced uses might
require a satellite system, the costs to deploy a
digital satellite network have never been as
available and cost effective as they are today
(thanks to technology born from direct to home
digital satellite TV). Satellite has a ubiquitous
footprint (meaning you can put a dish practically
anywhere and be connected). However, there are areas
where getting a southern exposure to the satellite
and putting in a satellite dish are prohibitively
expensive - Manhattan for instance. Paying for roof
rights can be very expensive there. Fortunately many
signage systems can handle a hybrid network topology
where some locations are terrestrially connected,
and others are satellite. Double-check that however.
Also your satellite provider may be able to offer an
alternative, since they deal with this sort of
situation every day. Other alternatives might be
DSL, but you had better do a site analysis on every
location, because all of your locations might not be
within range. WiFi (802.11b) is another choice, but
the coverage maps today from companies such as
T-Mobile, Verizon, Boingo, and others might look
good on paper, but in reality are very spotty at
best (unless your name is Starbucks). Digital
cellular connections might be a good alternative, if
your content is not too bulky. With these services
you can get upwards of 56Kbps (and perhaps 144Kbps)
with better coverage than WiFi, but at a
substantially lower bandwidth. Piggybacking on an
existing network infrastructure can work, but not if
you're going to be sending large MPEG files.
Sometimes the best approach is a satellite "overlay"
network with a terrestrial return. This gives you a
low cost multicast one-way network, while using the
existing terrestrial infrastructure for the small
amount of data needed to verify transmission and
system status.
DON'T FIGHT THE PC
INDUSTRY: It's amazing what multimedia power is
built into the average
£350 PC today, which
seems to get cheaper and cheaper each day. Locking
yourself into a proprietary design will only lead to
problems down
the road. Maybe the proprietary system that you've
selected is perfect for the one thing you need
today. What happens tomorrow when you have a new
requirement that you hadn't thought about before? Do
you end of scrapping the entire infrastructure? That
can get expensive. A programmable system on industry
standard hardware has the flexibility to grow and
adapt to the changing requirements, without having
to swap out the hardware.
ANYONE CAN DO A
PILOT, BUT DOES IT SCALE? There are plenty of
suppliers doing small pilot projects with brute
force and ignorance but
what happens when you have to scale for real? Does
the system really handle that well? What are the
limitations? How many 1000 unit deployments has the
prospective supplier been involved with? These are
important questions that have to be asked. Are the
systems reliable? Do they operate 24/7? What happens
if you only have dial-up connections? Does the
system still scale? Can the system work in a hybrid
of both high speed and low speed networks? What are
the implications in terms of content to support
this? Is it reasonable to assume that your chosen
network can support this content in a reasonable
fashion? There are lots of tough questions to ask
your future suppliers. These are all very critical
to the overall success of your network.
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