Volume 5, Issue 9 — September 19, 2013

According to the Forrester Group, e-commerce accounted for 8 percent of total retail sales in the U.S. during 2012. By 2017, it is expected to account for a full ten percent of all retail sales. This still leaves 90 percent of retail sales generated in the retailer’s store.

But shoppers today are more demanding and frustrated than ever with their in-store shopping experience. This dissatisfaction comes from increased competition, including online sales, that drives the need for higher service levels and greater differentiation. A recent study found that 80 percent of the retail CEOs surveyed believe they now deliver a great customer experience. Unfortunately, only 8 percent of their customers agree.

To attract and converse with today’s “digital everywhere” shopper, the store must meet the consumer on her own turf by providing a true “digital destination.” Digital destinations are captivating, fun, bold engagements within the retail environment.  They also carry on beyond the four walls of the store by enhancing the omni-channel experience. They create an entertaining experience where the shopper is motivated to come back to the store to engage again and again.

Digital destinations are an elusive blend of psychological, emotional and social ingredients that engage the shopper’s persona, augment the store’s physical environment and enhance the brand’s image. And the heart of any effective Digital destination is “gamification.”

Gamification is the study of how games can be designed and used to engage shoppers and create a more stimulating, fun and recurring shopping experience. It relies on an in-depth understanding of human psychology to be able to inspire and motivate shopping behavior. It is a formulated combination of one or more psychological driver, personalization and selfie-sharing.

An effective gaming digital destination must motivate shoppers to take time out of their time-starved lives and connect with the brand, then continue that connection on their pocket screen or online at home. But each retail vertical holds its own unique challenges so there isn’t a one-size-fits-all.

In the next three articles, I will write about the framework for developing effective in-store gaming digital destinations including a major brand case study. I will explain how brands and retailers can meet the digital shopper on their own turf by creating in-store digital destinations that are bold, engaging and unique. I describe the process required to connect emotionally with the shopper and keep an ongoing conversation once they leave the store. It is a win-win for the retailer, brand and shopper.

The math is simple: To maintain equivalency, a 10 percent growth in e-commerce only requires a 1 percent lift in store sales.

Image via Christie

Most of the trends in digital signage are positive, pointing to the ongoing success and value of this dynamic place-based media. Others point to failure and the challenges inherent in the growing industry. Seven trends in particular characterize the sector at this time:

• Growth and installed base;
• Focus on value;
• Failure of networks;
• ROI and ROO;
• Integration into the media model;
• Supply chain; and
• Content and transmedia.

Growth and installed base: With an estimated 20 million displays currently operational in North America and growing at 2 million a year, dynamic messaging is increasing revenues, branding and viewer engagement, and reducing communications costs. The 400-plus ad-based networks, more than 1,000 large brand and corporate networks and hundreds of thousands of smaller deployments offer an excellent base of example application and expansion potential. A key trend in supply is the focus on existing deployments that could benefit from technology, operational or content upgrades.

Focus on value: The “honeymoon” in digital signage ends about a year after initial deployment or use (sometimes faster). As the expectation of value increases, it is fortunate that improvements in viewer targeting and dayparting are an inherent capability of digital signage. The extent of investment made is causing many end-user organizations to seek higher return on investment through operating cost reduction, improved content strategy and increased third-party payments.

Failure of networks: While decision periods for video walls and installations of one to five screens are short, the launch period for new networks and expansion continues to be long. Key contributing factors include poor content, display outage (which may be as symptomatic as causal), revenue under-performance and lack of analytics (i.e., justification). While network dis-continuation is uncommon even when cost/benefit is unsatisfactory, such cases have, and will continue to, shock the sector and reduce the shine that the media enjoys. Under-performance as reflected by lack of expansion investment, suitable ROI, ad rates and uptake and higher than acceptable operating costs, reflect the malaise of networks.

ROI and ROO: While distinguishing value in terms of return on objectives for less tangible value has been commonly used, this puts network managers and their suppliers on a slippery slope. ROO can be measured as it contributes to return on investment. The trend of using ROO for investment validation makes digital signage vulnerable to greater investment scrutiny while diminishing its capacity of forever improving benefits through optimization. Any deployment that fails to have tangible measures of value ready for presentation is on its way to “walking the plank.” Lack of measurable value results inevitably in inadequate funding for content refresh and operations support, which result in the irrelevance of the network and the inclination to “pull the plug.”

Integration into the media model: Multichannel and omnichannel communications, which take advantage of the best features of many devices, are the clear direction among marketers and communicators. Some operators of digital signage have embraced this approach and enjoy being part of campaigns and initiatives. By driving viewers to websites and mobile interaction, digital signage is effectively transitioning from an “audience of many” message display to “audience of one” engagement. This trend will continue as new approaches to mobile activation emerge.

Supply chain: The field of suppliers of digital signage continues to grow rapidly, with static sign and digital graphics providers becoming a mega-force in the same way that audiovisual/information technology integrators have mobilized and expanded the sector. Static sign providers inherently understand communications and messaging, have existing customers, are inherently entrepreneurial and competitive, and require little training to learn how to develop digital signage content. At the same time, hardware providers are producing better product bundles, software providers are becoming smarter or are being rapidly marginalized, and the most capable suppliers are transitioning into high value-added areas and areas of broader service. Shakeout will leave the sector stronger as revenues are less dispersed and margins can better support ongoing growth.

Content and transmedia: Once the technology is in place, it is the messaging that delivers the results. Better message strategy and composition equals better results. This hard-fought battle under the banner “content is king” is being won. The key trend is toward getting it right. The Digital Signage Today survey published recently published reflected a significant change in content sourcing. Where 56 percent of respondents previously created all content in-house, the most recent survey reflects that only 21 percent will create content exclusively in-house. Other data points to the trend that content matters and getting it right is a top priority. The transmedia trend of leveraging (re-purposing) media used in other communications formats is strong and will continue.

Lyle Bunn (Ph.D. Hon) is a well-known analyst, advisor and educator in North America’s digital signage industry. He can be contacted at Lyle@LyleBunn.com.

This article was reprinted with permission from the Digital Signage Connection and originally appeared here.

The focus of this series “Power of Content” is to help people with content strategies and how they relate to digital screen media/

Well is it? Your viewers might think so.

Boredom — It’s the moment in time that drives us to do something better. Hopefully not better than watch your screens!

Content is king and to the viewer that content better be great – or you risk having a bored viewer. The bored viewer is a brand nightmare.

The funny thing is boys tend to be bored more often than girls, says Stephen Vodanovich, a professor of psychology at the University of West Florida, especially when it comes needing more, and a variety of, external stimulation.
“Boredom is the brain’s way to tell you: You should be doing something else,” says Gary Marcus, a professor of psychology at N.Y.U.

Jennifer Schuessler wrote about boredom in an essay in 2010 and said, “Boredom may itself be a highly useful human capacity… as an important source of creativity, well-being and our very sense of self.”

On the other hand, Anne Gosling wrote, “People who are often bored are at greater risk of developing anxiety, depression and drug or alcohol addiction, display anger, aggressive behavior and lack of interpersonal skills.”
When it comes to feeling bored frequently, it may be ones physiology… individuals with fewer dopamine receptors need more excitement to stay stimulated.

Brands want a positive emotional response to their images even on DOOH and digital signage — and boring content does just the opposite.

In Plutchik’s color wheel, positive feelings such as optimism, love and submission are the results of feelings that are interest and anticipation; serenity and joy; and acceptance and trust. As a brand, one would want content that is cool, exciting, fun that brings out positive emotions like optimism, love, submission and awe that ultimately bring on feelings that are positive to the brand. These are feelings that we strive for in creating great content.

On the opposite side of the wheel is boredom, which is on the way to disgust and loathing… just the feeling of what bad and mediocre content will impart to the viewer.

In my travels, I have seen many really bad pieces of content so, I’m going to vent here:

Ask yourself: Is my content boring? If it is, then you are hurting your brand and the brands you have on your network. PowerPoint does not equate to good content — it’s boring! If you are not putting up great content, then take the screen down. I’m not suggestion that you spend $250K on creating content, but for goodness sake recognize your limits and bring in the pros for some help or find out how to create great content. Digital signage is its own medium and it’s unlike any other. Content must be created specifically for it.

How do you create great content? Follow a few tried and true rules — see them coming up in part 2.

We just published a new tool to help in the successful planning and deployment of any tablet kiosk project, the Tablet Kiosk Vitals: Cheatsheet. This new cheatsheet covers everything you need for your tablet project, from start to finish. Download your copy here: Tablet Kiosk Vitals: Cheatsheet.

The Tablet Kiosk Vitals infographic covers 6 main parts of tablet deployment:

1. The details of your project, deployment size, phased rollout plans, goals, etc. – As with any project, it’s helpful to get all of the details down. This includes, the number of devices you plan on deploying, what kind of rollout are you going to do, who will use the device, why and where.

2. The content and experience: What content or app experience are you going to create? Are you going to use off-the-shelf apps and content or create a custom app just for your deployment. In this section we help you understand some of the variables you should consider in your choice of apps and content.

3. Key app characteristics: Not every app is suited for kiosk deployment. Actually, most apps are not well-suited for kiosk deployments. Here are some key characteristics any app you consider should have.

This article was reprinted with permission from the Digital Screenmedia Association and originally appeared here.

In my August column

This month I want to discuss the Point of Transit (POT) in the educational environment. I believe this type of signage is the most mis-used around campuses. This is the type of signage that requires a “why?” and a “what?” Why are you putting the sign up? Why are you spending the capital? What problem are you trying to fix? What area are you trying to enhance? What is your expected result?

As a tech manager, I have always felt it is not my job to ask these questions. I want to be seen as a helpful “yes man,” not the person who poses constant challenges. I always like to try and find people who are in the correct position to ask why, and have them do it. In this case, I think your best resource on campus, will be your communications and media relations group. Every day they are tasked with getting messages across to people in the most efficient and effective manner. When they are asking your customers “why?” it won’t be seen as a challenge, but rather as a “how can I help you?” Very rarely (never in my experience) does someone want to install a digital sign just because it looks cool. Instead, they have a problem they are trying to solve or and area of their work they are trying to enhance.

Currently at Bates College, all of our digital signage is POT. It took some learning for us to get to a point where we knew what we were trying to get across and how to best get it across. No surprise — it was the communications office who helped answer these questions.

Some of our first digital sign content was literally a scan of a poster created for a bulletin board. The poster would be advertising a specific event and had a significant amount of text and details on it. Certainly, they were not anything that attracted attention, or that people in transit had time to stop and read. Additionally, they were designed as a vertical poster and then put on a horizontal screen, the resulting image was tiny. So, the question that needed to be asked was “what was your goal in this bulletin?” Our goal was to increase attendance at many of these events. There was a feeling that students, faculty and staff did not read many of the e-mail announcements and this was a way to get the word out. That was the problem, but what was happening was not the solution. Our communications department solved this by putting together a very attractive template that included a picture that took up 50 percent of the screen. Good pictures attract attention. The other half of the screen only allowed for very little text: the title of the performance, the date, the time and perhaps a very easy to remember link like bates.edu/magicshow. Suddenly, in the 10 seconds it takes you to pass the screen, you gather all the required information along with knowledge on how to access more information and you never needed to stop walking.

Another factor that your colleagues in media relations can help you with is understanding your audience. A couple of our digital signs are in lobbies that are stops during our campus tour. That means eight times per day there is an audience of five to 25 people standing in those lobbies. Those people are prospective students and their parents. Better yet, because the tours are so structured, we know within a couple of minutes when the tour will be in each location. So, your communications team can identify what they want the parents and students to see at that time. At Bates, we show academic award winners, such as Fulbright Scholars. We also show faculty publications (images and titles of books written by faculty). In another building, you could show awards that your arts faculty and students have achieved, or a list of recent performances by those groups. If used wisely, you can have different content at each location exactly as the tour arrives at the digital sign. In this case, the answer to “why” is to show off the best of our achievements in academic and the arts to potential students.

The professionals in your communications group can also help you with knowing when is the best time to NOT use a digital sign. I certainly learned that lesson. Our first digital sign, with content and design by yours truly, included a scrolling directory of faculty and staff in the building. With 25 plus faculty and staff, even at 5 seconds each, it took more than 2 minutes to wait for the whole list to scroll through. The best part was that if you turned your head 90 degrees, right there on the wall was a good, old-fashioned building directory. My communications group indicated to me that the scrolling directory was not the best use of screen real estate.

Also as important as knowing your audience for the POT is knowing how that audience changes over the course of the day. In your library, you probably don’t have many faculty or prospective students walking around at 11 p.m. (or later). What you do have are students who are working on their academics. What may be interesting to a student at that point? Well, there is the obvious of coffee and caffeine, and then more of the same. Point them to the library cafe, or the closest coffee spot on campus. They also may be interested in dates and deadlines, such as registering for classes, dropping classes, when final exams or mid-terms begin. Perhaps they are interested in resources like writing support or math support. Where are those resources located and what are their hours and contact information? A really sophisticated feature would be the ability to interact with the sign and request the currently availability of any peer tutors available at that exact time. At that point in their day, the students are probably NOT interested in what is happening for events around campus. Their minds are in a different place. In this case the “what” is answered with a “we are trying to make sure our students who are working on their academics know of resources available to them, and deadlines they need to be aware of.”

What are some very interesting uses you have found for POT in the educational market? Have you had any experiences that have clearly answered the “why?” and the “what?” If so, give me a shout! I look forward to hearing from you.

Growing demand from large TV panels is expected to increase OLED material revenues at a compound annual growth rate of 67 percent through 2017, even as material revenue from mobile phones slows after 2014. According to the Quarterly OLED Materials Report from NPD DisplaySearch, revenues from organic materials used in the emission and common layers of OLED displays are forecasted to reach $530 million in 2013 and grow to $3.4 billion by 2017. The growing importance of OLED materials is emphasized by this month’s announcement that Samsung, the leading OLED panel manufacturer, was acquiring Novaled AG, a developer of common-layer OLED materials.

Until recently, active-matrix organic light-emitting diode (AMOLED) displays have mainly been used in mobile phones, but AMOLED display manufacturers are now starting to make inroads into TVs, tablet PCs, and other large-area display applications. OLED TV unit shipments are expected to remain modest at less than a million units in 2014 and only reaching 10 million after 2017, when they will account for 10 percent of total OLED panel shipments. However, on an area basis, OLED TV panels are expected to account for 17 percent of the OLED display materials market in 2014 and will exceed the share of mobile phone panels by 2016.

“The large size of TV panels will result in OLED display area growing quickly through 2017,” noted Jimmy Kim, senior analyst for NPD DisplaySearch. “The demand for materials in the emission, common, and other OLED layers is proportional to the area of the panels; furthermore, the low yield rates for OLED TV panel manufacturing means that the consumption of raw materials is further increased; thus, the introduction of OLED TVs will result in rapid growth in the market for OLED materials.”

Figure 1: Forecast of OLED Material Revenue by Application

Source: NPD DisplaySearch Quarterly OLED Materials Report