SignageWire: Feeding the digital signage and kiosk hype machine

Philips to track window shoppers

WireSpring

Shopper Culture picked up this interesting bit from Philips's ShopLab:

ShopLab, Philips’ Research and Development Unit, has recently patented a Window Shopper Gaze Tracking System. It is a system that tracks the eye patterns of window shoppers, allowing stores to see what the shoppers see, and follow their gaze.

The system, which utilizes several video cameras and eye tracking software, allows for stores to track the interests of shoppers before they even enter the store. It can then identify which item the shopper is staring at the longest and possibly post additional information regarding the item on a screen (could be interactive) above or around the display.

Our take:

Gaze tracking is of course nothing new. In fact, it has been in the press quite a bit recently, especially with TruMedia -- one of the pioneers in the industry -- catching some flak from the New York Times for their involvement with billboards that "watch back." While there are still plenty of people around who are less than thrilled with the prospect of hundreds of advertisers watching them as they make their way about the world, the reality is that as long as such solutions aren't illegal and generate more value (probably in the form of additional marketing data) than they take away (probably in the form of angry or upset shoppers), they will continue to become more commonplace.

However, what strikes us as unique about Philips's project is that it's inside the store looking out. Most of the time, these kinds of systems are looking in, trying to figure out what shoppers are doing in the store. Whether or not the Philips system could provide useful data or be used in conjunction with some kind of active marketing medium like outward-facing digital signs or through-glass touchscreens to be truly useful remains to be seen. Again, there have been plenty of technology demos and cool one-off marketing projects that utilize these systems, but given their cost, complexity and uncertain returns, they've yet to gain a significant place in the market.

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NTT commercializes aroma-emitting digital signage system

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Only in Japan... At least, that's what CrunchGear says about this system for now:

They tested it for nearly a year now but today Japan’s telecommunications giant NTT announces their aroma-emitting digital signage system is finally available [JP] for advertising and promotion companies in and outside Nippon.

A limited test run of the so-called Kaoru Saineeji (aroma signage) system in a few selected places in Tokyo was finished successfully. NTT uses a proprietary digital signage technolgy as the basis for the new system to produce video and sound.

A web service dubbed Kaori Tsuushin (aroma transmission) is supposed to attract potential buyers by a nasal stimulus: Kaori Tsuushin will emit fragrances in correspondence with the sound and video displayed via the digital signage system.

The result wished for is obvious: Improve sales by improving the marketing of the product. A cosmetics maker that used a test machine in one of Tokyo’s busiest underground train stations last year supposedly reported a 100% growth in terms of awareness in comparison to conventional signs.

NTT charges a base fee of $1,400 for a basic fragrance-emitting system (including software).

Our take:

While sight and sound are the senses that everybody is used to using the most, smell is actually more powerful in its ability to formulate new memories, force the recollection of old ones, and, of course, it's really had to ignore (whereas people are pretty good at tuning out visuals, and are getting much better at tuning out audio now as well). However, it still seems weird that NTT would bother commercializing something like this system, as it would seem to have a somewhat limited appeal at this point. Also, while"100% growth in terms of awareness" seems pretty noteworthy, there's no mention of whether the awareness was positive. I could get everybody to notice my sign if it reeks of sulfur or garbage, but I don't think it would do much to impart a positive image on whatever I was trying to sell.

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The Golf Network Prepares Major Rollout

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MarketWatch alerts us that:

After three years of extensive planning, testing, and building industry relationships, The Sports Retail Networks announced the closing of its Series A funding. "We are now positioned to roll out our premier digital signage brand, The Golf Network, to more than 100 retail locations in the next two months," announced Mark Biestman, co-founder and CEO/President.

"In extensive audited production tests, TGN increased retail revenues as high as 30 percent at sporting goods stores, golf specialty shops and green grass pro shops. The potential ROI for both the retailer and advertiser is thus very strong while the consumer benefits from an improved, educated shopping experience, making a more informed purchase," [co-founder and EVP] Donahue added.

Our take:

There's no doubt that golfers represent a more affluent slice of the population than your average Joe at the local Dunkin' Donuts, however just because they have money is no indication that they're likely to part with it. That has been our principle concern with digital signage networks that try to advertise in places of leisure. However, if TGN's "extensive audited production tests" are to be believed, this may be a moot point. Because golf has consumables (balls, tees, etc.), there's already a reason for many players to visit the pro shop before or after a round. And while these items might be the main driver for a visit, it's not hard to imagine somebody with some free money stopping to buy another shirt, or maybe even a new driver. Consequently, the ads might well be serving as a priming mechanism, and counting on some other behavior to get the golfers into the store in the first place.

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Digital Signage Association Elects Officers

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MarketWatch has this press release that says:

The Advisory Board of the Digital Signage Association (DSA) has elected its first Executive Committee, with Stu Armstrong, president of EnQii North America named the first president of the Association. Along with electing a president, the DSA Advisory Board also elected vice presidents representing various constituencies. Those elected include:

President - Stu Armstrong, EnQii North America
Vice President, Vendors - Charles Ansley, Symon Communications and Dick Trask, Scala
Vice President, Users - Margot Myers, United States Postal Service
Vice President, Integrators & Pro A/V - Tom Johnson, Digital AV
Vice President, Network Operators - Rocky Gunderson, SeeSaw Networks
Vice President, Agencies/Brands - Jacquelyn Corbett Cyr, Espresso | Brand Infiltration

Our take:

Quite frankly, we still don't quite understand what the Digital Signage Association does, especially in light of the fact that there were already numerous working groups and industry associations around before these guys got started. Between POPAI's global digital group, OVAB (which focuses on advertising) and several others, one would have thought that the market for such groups was saturated. However, with a very low membership price and newly-minted charter, the DSA has shown us otherwise.

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Arbitron measures good results with place-based media

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As MediaPost reports:

Approximately 90% of people who see advertising in health care venues can recall an ad delivered by those media, including both health care workers, patients and visitors, according to a new study by Arbitron performed for the Health Media Network. This result includes the impact of both media and place-based video. The HMN ads included both posters and spots inserted into content on digital televisions around health care facilities.
Arbitron found that 60% of the total hospital population noticed at least one of the media, 55% noticed the TVs and 45% noticed the posters. The group of patients and visitors who noticed the TVs watched about 1 hour and eight minutes' worth of content on average, including advertising. Furthermore, 60% recalled at least two ads, and 31% recalled three.

Our take:

This isn't the first digital out-of-home network that Arbitron has been asked (paid) to measure, but what's interesting is that they seem to get consistently good results from the medium. However, ad recall is far away from influencing purchasing behavior, or, ultimately, compelling the sale of the advertised product. However, as many other advertising media use "recall" as a yard stick, if nothing else this method should help media buyers compare the relative effectiveness of digital signage networks with their chosen media (probably print or TV).

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PRN to Operate In-Store Media Network for Walmart Mexico

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MarketWatch notes:

Thomson's Premier Retail Networks, Inc. (PRN), the world's most experienced provider of digital media solutions for retail, today announced it has reached an agreement with Walmart Mexico to operate its retail media network that covers most of Walmart's Supercenter format stores and Bodega Aurrera locations in Mexico, visited by millions of shoppers every month.

This agreement with Walmart marks PRN's entry into Mexico with the mission of enhancing the existing Walmart Mexico in-store media network and delivering a targeted media experience to its shoppers, where they make 75% of their purchase decisions.

As part of the agreement, PRN is providing Walmart with an end-to-end solution that includes a digital in-store media strategy, customized programming, advertising sales and operations.

The in-store media network programming will be custom designed by a dedicated creative PRN team to enhance the shopping experience and to enable Walmart to further brand its in-store environment and communicate with its customers using the power of sight, sound and motion.

Our take:

Of course we have a take on this -- it's our network, right? Well, sort of. While we list Wal-Mart Mexico as a client, they're just using our digital signage software and hardware. The actual design, implementation and management of the network -- along with all of the content creation that went along with that -- was handled by Televisa S.A. de C.V., the biggest Spanish language media company in the world, and one of the largest companies in Mexico. Consequently, our relationship as described in this press release from 2006 is still accurate and relevant.

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NewSight Corporation Surrenders Collateral to Wireless Ronin

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MarketWatch points out some bad news for RNIN:

Wireless Ronin Technologies, Inc., a Minneapolis-based digital signage provider, today announced that it has reached agreement with NewSight Corporation to terminate its digital signage agreement and to take ownership of the hardware and software constituting the in-store network at 102 Meijer stores and inventory of hardware necessary to build out approximately 40 more such stores.

"Our belief was that NewSight would have completed its financing transaction in the first half of 2008, laying the groundwork for NewSight's future operations," said Jeffrey C. Mack, Wireless Ronin Technologies President and CEO. "When NewSight failed to obtain such financing, we engaged in discussions resulting in Wireless Ronin taking control of the hardware and software constituting the Meijer in-store network. We are pleased to also have entered into an agreement that provides for the continued operation of the Meijer network, thereby eliminating any disruption to Meijer or its customers. We have also entered into discussions with several national network providers focused on the build-out of the remaining Meijer stores with continued management of the Meijer network by Wireless Ronin. "

Our take:

While Bill might simply say "I told you so," we'd take the slightly more diplomatic stance of saying "don't trust all of your first year's revenue to a start-up company." Of course, when the chips are down and you're a newly-IPO'd firm that needs to show the ability to generate some revenues, we suppose that the pressure might drive the management team to make some bad decisions out of pure desperation. Plus, the digital signage market is still hot enough to attract lots of outside investments, so NewSight was probably able to talk a good enough game to keep Ronin's team hopeful for a long while. It's unclear what Ronin plans to do with the Meijer network or the inventory of hardware on hand to continue its build out. We expect to hear more in the near future.

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Kiosks Improve Customer Experience at Borders

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George Anderson writes in this RetailWire discussion:

The Borders chain is in trouble, but the company's new concept store in Allen, Texas shows that it is serious about finding a way out of the mess should a white knight not come along to rescue it.

According to a report by The Dallas Morning News, the new two-level Borders store is big on trying to create an exciting customer experience with a whole host of interactive features and new product offerings in its digital electronics center.

The digital center, according to the report includes "20 well-edited" items. On Borders' short list are an e-book, solar-powered charger and a device that allows consumers to watch and/or record television on their laptop or smart phone.

"We're not trying to be Best Buy," said Bill Christensen, zone vice president for Borders. "But this isn't just a bookstore. Eighteen months ago, we started researching with our customers what else we could be."

Interactive kiosks in the store allow shoppers to burn their own CDs, create audio books, self-publish books and make travel reservations.

Our take:

Borders has been a long-time proponent of interactive kiosks, having had them in place even before the Internet made the concept of electronic transactions commonplace. While their network has had some problems over the years, the company continues to fund expansions and upgrades to it, signaling that they must be getting some kind of benefit from it. The question to this day, though, remains exactly what they find the kiosks do. Do they encourage more same-day sales? Do they pull in additional sales thanks to product line extensions? Do they simply lower costs by letting more people help themselves instead of needing service personnel?

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NEO Advertising Partners with RMS Networks

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From this press release comes the following "news":

Swiss Neo Advertising, the leading provider and operator of Digital Out-of-Home Networks, announced today that they have chosen RMS Networks’ as the company’s U.S. affiliate. Neo Advertising plans to immediately begin utilizing rVue, RMS’ addressable advertising technology, in their existing Canadian locations, as well as future outlets located in Europe and North America.

One of Europe’s fastest growing Digital Out-of-Home groups, Neo Advertising currently operates over 50,000 screens in premier locations in Switzerland, Canada, Germany, Netherlands, United Kingdom, Portugal, Spain, Belgium, Poland and Italy. Positioning the company for continued growth, they investigated the market’s best-in-class technology solutions and industry leaders for its next strategic relationship. Neo selected RMS Networks for its reputation, full-service capabilities and proprietary rVue technology as it eyes expansion into the United States.

Our take:

After some discussion with people familiar with the deal, it appears that RMS may have jumped the gun a bit here. Their deal is only with the Montreal sales office managing Neo's existing Canadian screen network. While there are desires to expand into the US, there are no firm plans in place yet, or any screens for that matter. Supposedly, the European network will continue to use their existing digital signage platform, and doesn't plan to work with RMS in the near future. And finally, there's some doubt that the rVue platform will do little more than feed content into the Canadian network's existing infrastructure, rather than replace it outright.

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Satellite networks must be big to be economical

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This Northern Sky research report has the details:

The assumptions are clearly laid out as follows:

A network is expected to grow from being a 50-screen, 20-site deployment in Year 0 to a minimum strength of 500 screens and 200 sites in Year 9 of the analysis.
The same network could also possibly grow from a 1,000-screen, 250-site deployment in Year 0 to a maximum strength of 20,000 screens and 5,000 sites in Year 9 of the analysis.
All screens are networked and consist of a standard screen, media player, connectivity equipment and AV cabling as the Customer Premises Equipment, while servers and software form the backbone. Installation costs of all equipment have been taken into account.
Recurring costs, on a yearly basis, consist of network bandwidth and maintenance of all equipment.
Factors such as cost of content and site rental are assumed to be equal across all deployments and hence have no relative impact.

The total cost of deploying a Digital Signage network of the scale mentioned above ranges from $150,000 to $11 million per year depending upon the number of screens deployed, and a large portion of that total is the cost of the screens. However averaged over a 10 year-period, the cost per screen rests between $2,300 and $3,200 per screen deployed. This translates to a cost of $7,000 to $10,000 per site if we consider the average number of screens between three and four per site. This figure for the average number of screens per site was established by NSR as a part of the Global Market for Digital Signage report and widely accepted by the industry.

The figure below depicts the variation in the cost per screen when compared across two technologies for connecting Digital Signage sites, namely terrestrial (wired two-way) and satellite one-way (DVB-S/S2 and terrestrial return path). As the figure shows, the "tipping point" is achieved when the cost per screen for deploying this network via a one-way satellite solution falls below that for deploying the same network over a terrestrial equivalent. This benefit continues as economies of scale are achieved, a long-standing advantage of a satellite solution. Based on the inputs above, NSR's analysis reveals that this tipping point is achieved at a network deployment of close to 4,500 screens.

Our take:

This is the first analysis of terrestrial versus satellite distribution costs that we're aware of -- publicly at least. We're sure plenty of companies have done their own research on the best method to get data to hungry digital signage screens, but unfortunately the results of such studies are typically kept under wraps for competitive (or other) reasons. That said, we're not surprised by the conclusions -- even with small aperture dishes taking over for huge C-band ones, the cost of installing satellite receiver equipment and paying for bandwidth is not cheap. The economies of scale only kick in when there are enough endpoints and shared data amongst them to make satellite multicasting worthwhile. Even in the case of a very large network, though, if there is a lot of different content on each screen, a terrestrial network is still the way to go.

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26 Outrageous Kiosks and Vending Machines

Jeremy Zaretzky

We've seen some really strange kiosks and vending machines over the years. When you're writing software for self-service kiosks and digital signage, it goes with the territory. So we asked our team to come up with a list of crazy vending concepts, and threw them into a hat with real systems from around the world. See if you can figure out which ones are real and which ones are fake:

1. "Medical" Marijuana

Something tells us this is from California.

Real or fake? Real

2. Balloon Animals

This is probably a huge hit in theme parks. We don't want to be around when the local clown union hears about it, though.

Real or fake? Fake

3. Flight Insurance

Too bad you can't get insurance for airline delays.

Real or fake? Real

4. Breathalyzers

If you can't find your wallet to buy one, you definitely shouldn't be driving.

Real or fake? Fake

5. Sports Betting

Because blowing all your money on drinks isn't enough.

Real or fake? Real

6. Umbrellas

You have to wonder if the prices are higher when it's actually raining.

Real or fake? Real

7. Rotisserie Chicken

Self-service meets poultry-on-a-spit.

Real or fake? Fake

8. Batteries

Every office building and apartment complex should have one of these.

Real or fake? Real

9. Fresh Lobsters

$1 is pretty cheap for a lobster. Maybe it's imitation.

Real or fake? Real

10. Toilet Paper

This is just plain wrong, unless you get a certain amount free -- or maybe it's subsidized with ads.

Real or fake? Real

11. Life Coach

Self-improvement is a big industry, so why not provide motivational guidance on demand?

Real or fake? Fake

12. Church Confession

Just hope it's not being recorded and broadcast on the Internet.

Real or fake? Fake

13. Office Supplies

Did someone clean out the supply cabinet without telling you? Now you can get pens and paper right in the lobby.

Real or fake? Fake

14. Pee-to-Play

The idea is that you aim your...um...stream to steer the car and win prizes.

Real or fake? Real

15. Tombstone Greetings

You can either record a message before your death, or have the video company make a greatest hits montage from your home movies. Creepy.

Real or fake? Real

16. Famous Speeches

I'll take a burger, large fries, vanilla shake...and the Gettysburg Address.

Real or fake? Fake

17. Dry Ice

They say this is for keeping food cold, but I'm sure there's a more popular usage that involves something illegal.

Real or fake? Real

18. Wine Tasting

Sick of waiting for the product sampling guy to make his rounds? Now you can try new wines on your own schedule.

Real or fake? Fake

19. Hot Pizza

They claim the pizza isn't frozen, so it's more like a really fast take-out place in a box.

Real or fake? Real

20. Light Bulbs

Maybe they even have those 60-watt soft white bulbs that nobody carries.

Real or fake? Fake

21. Church Tithing

Of course God accepts all major credit cards -- it's amazing it took Him so long.

Real or fake? Real

22. Quiet Time

Gotta love the simplicity: a soundproof booth that you pay for by the minute.

Real or fake? Fake

23. Pet Insects

Let's assume that kids like to buy live insects. So, how does the machine keep them alive until they're sold?

Real or fake? Real

24. Kites

Kite sales? The better approach would be kite rentals. (Side note: getting hit in the head with a kite hurts. A lot. Don't ever try it.)

Real or fake? Fake

25. Hallucination

Step into the chamber, and it immerses you in otherworldly sights and sounds.

Real or fake? Fake

26. Armageddon Prep Kits

Everything you need for the impending zombie apocalypse.

Real or fake? Fake

Which of the real ones is the most surprising? Should somebody start making a few of the fake ones? Which vending machine would you like to have near your house?

Spread the word about bizarre vending machines: Mention this article on your blog or Twitter, or send your friends an email about it.

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Focus Media Q2 2008 earnings strong, profits down

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Seeking Alpha has the transcript of last week's quarterly conference call. The part related to digital signage is:

Total advertising revenue from our digital out-of-home advertising reached $135 million in the second quarter of 2008, up 76.2% as compared to $76.9 million in the second quarter of 2007 and 24.4% sequentially.

Within our digital out-of-home advertising business, the revenue from our commercial location network in the second quarter was $81.1 million, up 58.9% year over year and 29.9% quarter over quarter. The revenue from our in-store network was $17 million, up 135% year over year but down slightly due to our continuing effort to optimize the combined in-store network coverage during the integration of CGEN acquisitions. The revenue from our poster frame network in the second quarter was $37.3 million, up 101.2% year over year and 27.9% quarter over quarter. The commercial location network, in-store network, and poster frame network contributed 59.9%, 12.6%, and 27.5% of the total digital out-of-home advertising revenue in the second quarter respectively.

Our take:

Focus Media is now generating (in China) -- in a single quarter -- what would amount to about a third of the total advertising revenue on digital signage networks in the United States in an entire year, even including such mega-networks as Wal-Mart TV. That's impressive in its own right, but perhaps even more impressive is the fact that this part of the business is growing at an astounding rate, and has been since the company went public. Of course the bulk of the revenue comes from their massive office building network, and the in-store network (much newer and smaller) brings in "only" $17 million a quarter. Interestingly, the company continues to make good money on their (static) poster network, which counts for more than twice what they make on the in-store digital stuff.

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Machine vision sorts produce at self-service checkout

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This article at Vision-Systems Design says that:

Researchers at the Fraunhofer Institute for Information and Data Processing IITB (Karlsruhe, Germany) have developed a webcam module for self-service scales. "The scales automatically recognize which fruit or vegetables are to be weighed and ask the customer to choose between only those icons that are relevant--such as tomatoes, vine-ripened tomatoes and beefsteak tomatoes," states IITB scientist Sascha Voth. Customers can confirm the correct variety on a touch screen.

But how do the scales know whether the customer has placed a pepper, a tomato, or a kiwi fruit on them? "The goods are registered by a camera integrated in the scales. An image evaluation algorithm compares the image with stored data and thus automatically recognizes which type of fruit this is," says Voth. Even the cloudy plastic bags in which the fruit may be packaged at the counter are no problem for the scales--the image evaluation system recognizes the various types of fruit and vegetable anyway.

Our take:

The technology behind these systems sounds amazing - they can recognize multiple different varieties of banana, tell a nectarine apart from a peach, and recognize bananas as they go from green to yellow to spotted brown. However, unless the system is really fool-proof, we wonder whether using it to get a price estimate only to find that the price is different at checkout will do more harm than good for consumer sentiment.

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Blockbuster sets sites on kiosks, set-top boxes

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We came across this neat blog article at NewTeeVee that says:

CEO Jim Keyes [indicated that]
“The important thing about NCR as our partner is instead of going out and partnering with Redbox or somebody else, we picked a technology partner so that when we deploy a vending machine, it’s a vending machine that turns into a digital download kiosk.”

According to Keyes, the kiosks have a server built into them so customers can choose between getting a physical DVD or a digital download. This physical-to-digital transition is one we encouraged Blockbuster to make a while back, but the company’s digital download options only work with Archos right now, which is severely limiting in this iPod nation of ours.

Our take:

Blockbuster is in a difficult position right now. Their market share continues to be eroded by Redbox kiosks, Netflix's mail-based distribution, and the newcomer, streaming video over the Internet. For all that, though, they still have a very strong brand that's practically synonymous with video rental, even with younger Millenials. So Keys is walking a fine line. While their kiosk strategy is interesting -- it gets people into the store but gives them access to a vast library in digital or physical form -- we're not convinced that it will be convenient enough to beat streaming, or big enough to beat Netflix. But the notion of "waiting for the dust to settle" in the set-top box market is a sound one. There are plenty of start-up and established companies vying for a piece of the living room right now, and most of them will fail in a few short years. Once a clear winner emerges, Blockbuster can use its considerable brand cache to stake a claim against the winner.

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TouchTunes acquires BarFly

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MarketWatch informs us that:

Through its acquisition of Barfly Interactive Networks, a rapidly growing in-bar advertising and media company, TouchTunes Corporation, the largest out-of-home interactive entertainment network, will augment its expansive system of digital jukeboxes with prominent screens in bars across the United States. Barfly will bring new content from some of the most influential brands in the world, adding to TouchTunes' robust digital music, advertising and games offering.

The Barfly in-bar media platform, which has successfully operated in approximately 150 bars in select metropolitan markets for the past year, was built as a fully legal way to create a brand conversation at the point of sale with bar patrons between the ages of 21-34, a demographic that has become increasingly media sensitive and tech savvy. Its content is a balanced mix of interactive entertainment and marketing messages from its partners.

Our take:

There's no doubt that TouchTunes has one of the more successful alternative out-of-home advertising platforms around, but with 35,000 installed locations we wonder why they bothered buying somebody like Barfly, with a relatively puny 150 locations themselves. If TouchTunes really wanted to try out digital signage, there would surely be more cost effective ways to do so. Perhaps they were more inrested in Barfly's sales team, which, as we all know, can make or break an ad-funded digital signage network deployment. Or, Barfly might have been in some kind of financial trouble, in which case TouchTunes might have picked them up for less than the cash value of their assets (let alone the "real estate" acquisition cost).

One way or another, expect TouchTunes to expand the footprint of their new digital signage network into some, if not eventually all of their jukebox locations.

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