Digital Signage Expo 2010 Recap

The following is an overview of company and product news gathered by Institute editors last month at the Digital Signage Expo in Las Vegas.In an entertaining keynote presentation during the pre-show Digital Out-of-Home Advertising Summit, TV/online host Shelly Palmer made it candidly clear that pure technology is not a catalyst for success.Palmer advised the digital signage vendors in attendance to think beyond "captive audience" and "gross impressions" to build communities of loyal followers instead of networks with passive, uninvolved viewers. Successful networks will find ways to influence consumer behavior -- and methods of proving that impact -- through the technology, he said. "There are no technological advantages to be had."Retailer NewsWalmart has adopted a "lift-based" pricing model for its Walmart Smart Network in which advertisers pay varying amounts based on the historical sales increases their categories have gained through the network. The Smart Network launched in fall 2008 with a flat rate card based on location and duration. (See "Walmart Gets 'Smart' …" in Related Articles.)Representatives from the chain and network partners Studio 2 and DS-IQ joined for a conference presentation extolling the virtues of the network. Originally targeted for deployment in 2,700 stores by early 2010, the network currently is operating in 800 locations and should reach 1,400 by the end of the year. The installation schedule has been aligned with Walmart's broader "Project Impact" redesigns, according to a company source. (See "Store Check ..." in Related Articles.)DS-IQ vice president David DeBusk presented a list of average incremental sales lifts gained through the network: Electronics: 7% OTC: 23% Household/Paper Goods: 49% Food: 13% Health & Beauty: 28%In terms of general ad themes: Product launch: 19% Seasonal push: 18% Mature items: 7% Price leadership ("Rollbacks"): 6%Walmart is playing up the "synergies" gained through "Triple Play" advertising in which a brand's program runs (with tailored creative) on the network's entryway welcome screens, perimeter locations in specific departments and an endcap. Studio 2, the ad hoc shop formed by the Martin Agency and MediaVest when Smart Network first launched, now also handles ad sales under the direction of former Walmart executive Bill McMullen.McMullen discussed recent shopper surveys in which 40% of respondents said they noticed the screens, 32% of that group recalled ads, and 64% of those people claimed to be influenced by what they saw.Meijer is back in the digital network game, having launched the Meijer In-Site Network in January. (See "Meijer Field Report ..." in Related Articles.)Target Corp. is experimenting with non-endemic advertising on its Target Red in-store network, according to Colin Mather, the chain's group manager for digital vendor management. However, the company's ideal goal is multi-channel marketing programs that would encompass Target.com, outbound email and other vehicles, he said.The chain is offering a program through which brand marketers can place product samples into the shipments of products purchased on Target.com.Vendor NewsCisco announced partnerships with a host of content strategy and production companies to expand its Digital Media Creative Services capabilities to include measurement, analysis and content and design consultation. The partners include OgilvyAction, Alchemy (part of St. Joseph's Communications), Imperative Group, StoreStream Metrics and MEDIAmobz. Syndicated content partners include Blue Pond Media, Blue Fox, HeadsAndTails and Virtual Scenery, which let Cisco offer its customers syndicated content options.Amidst a bevy of its screens, NEC demoed the early stages of a universal ad platform called Vukunet that the company hopes will bring together store networks and advertisers. The anchor of the automated platform is a web-based "Ad Management System" that will let prospective advertisers find relevant networks and submit ads for consideration. The goal is to create "one-stop shopping" for out-of-home ad placement. NEC currently is registering networks and hopes to go live later in 2010.In-store entertainment provider PlayNetwork touted its fall 2009 acquisition of similarly focused Channel M. (See "Technology: In-Store Marketing Expo Overview" in Related Articles.) The deal gives PlayNetwork a vast array of audio and video production capabilities and a client list of nearly 200 brands and 65,000-plus installations. Channel M also brings the company its first ad-supported networks, according to Brian Hirsh, who PlayNetwork hired as senior vice president-marketing, licensing and new media in January. Hirsh was hired away from Channel M's main rival, Retail Entertainment Design, a company he co-founded. (See "Tween Brands Launches a Network" in Related Articles.)Reflect Systems showcased the "Digital Merchandising Pod" it created with Digital Display and Communications (and P-O-P manufacturer Blake Jarrett & Co.) for client Labatt Breweries. (See accompanying video.) The Canadian beer company announced last December that it would roll out 300 more of the displays to c-stores and other retailers, after the 200 deployed in mid-2009 proved wildly successful in lifting sales. The displays literally are rolled into stores and plugged into an outlet. (See sidebar for more information.)Sony Electronics exhibited alongside new acquisition Convergent Media Systems, a system-integration specialist that will help the consumer electronics giant in its quest to become a full-service source for digital signage solutions, according to executives at the show.Sony has been working with Best Buy Canada to develop traffic-driving content for digital screens in the windows of the chain's mall stores. (See accompanying video.)ProductsIndustry newcomer AdOasis visited the show for the first time to begin pitching its flagship product, a "6-D multi-sensory" kiosk with components that deliver digital graphics and full-motion video, audio, scent and product samples. An option that turns the kiosk into a misting station (for hot days) adds a level of consumer "touch." The sixth "D" represents the brand-building "thoughts" consumers will have after experiencing the kiosk, according to AdOasis' website.Canvys demoed an interactive paint-brush tool display powered by LopArt software from LopLop. Canvys' 42-inch LCD monitors with optical touch features let shoppers use an attached paintbrush to color live, animated brushstrokes onto the screen. (See accompanying video.)This assessment is based mostly on the display simulation rather than the technology behind it, but Christie Digital Systems wins "best of show" for its MicroTiles "digital canvas." The striking apparel display created for the show (see accompanying video) suggests that this modular system could enhance a store's overall environment while dramatically increasing a specific brand's presence -- and, ultimately, saving the costs associated with physical P-O-P materials. (Seems like it would be ideal for Target to use with its limited-time "Designer Collaborations" merchandising program, as an example.)Delta Electronics exhibited a variety of digital solutions, including a "Super Narrow Bezel LCD" and a multi-functional touch-screen system. The company's technology demonstrated how much the quality of 3-D imagery has improved since the 2009 Digital Signage Expo. (See accompanying video.)DynaScan's 360-degree LED displays have been available for several years. (See "Technology: NRF's Store of the Future" in Related Articles.) But, as above, the image quality has improved dramatically enough to be noticeable from two aisles away. (See accompanying video.)In association with MakeOverKiosk.com, iSign Media Corp. presented a prototype kiosk offering cosmetics and hair makeover simulations. (See accompanying video above.) Teaming with the popular website The Daily Makeover, the kiosk lets shoppers upload their own photos (or use stock shots) to experiment with hair styles, cosmetics or accessories like jewelry. The kiosk shell is customizable for specific retail environments. (Brands could host the service in-store, too.)Also, iSign pitched a "Digital Greeter" kiosk that integrates the company's Bluetooth-enabled content management system into the IBM AnyPlace Kiosk manufactured by Skipton Group (see Image/video at right). The resulting kiosk (a prototype wasn't ready in time for the show) boasts a touch screen to facilitate shopper interaction, a height-adjustable digital monitor to present promotional messages, and an "old school" brochure holder for take-aways. (It also has a hook for hanging shopping bags.) An embedded camera captures facial features (via CognoVision software) to tailor the promotional content. Shopper interactions are also measured (using St. Clair software).Leapwave showcased new games and text content channels that can be used for interactive mobile phone promotions. The games run on digital screens in bars, restaurants, stores or other venues, with patrons playing along on their phones. On the screen, the game looks similar to a lottery card, with space available for an ad message. The text channels present a full ad or brand logo alongside a simple riddle, joke or other tidbit of information.LuxuryTec introduced Mirror Image, a digital display that will play static images, HD video or even 3-D content until someone comes close to the screen. Then, a motion detector turns the screen into a mirror. (See accompanying video.) Several retailers already are considering unique applications (a "prominent shoe chain" has already signed on), according to the company's marketing collateral.Huntersville, NC-based LuxuryTec also is trying to build a Mirror Image Digital Network that would place 40-inch screens in restrooms at airports, sports arenas, casinos, schools (really?) and other high-traffic venues. Ads will be controlled remotely and interactions will be measured. The company claims it will have 10,000 screens in place by the end of 2010.MediaTile demonstrated its HumanKiosk, a freestanding device offering a variety of now standard informational/interactive capabilities -- but via wireless 3G/4G cellular networks to eliminate the need for additional in-store hardware. The HumanKiosk also supports live, two-way video/audio conversations between a shopper in-store and a remote service representative or topical expert. (See accompanying video.) It also can be outfitted with an audience measurement system that will collect and measure shopper opinions or reactions to promotional offers.Symon Communications and TelePresence Tech debuted a LiveView 3-D kiosk. The system's high-definition LCD monitor plays clear 2-D graphics that are reflected off glass to add the extra dimension, thereby eliminating the additional costs of producing 3-D content. (See accompanying video.) The kiosk's shell can be customized to provide a variety of interactive options and/or match different retail environments.

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