By the count of Bill Gerba and his company Wirespring, there are some 330 firms out there peddling some form of Digital Signage software platform.

Let’s be conservative and say each of those platforms has at least 20 clients. That’s more than 6,500 networks that are running anywhere from one to 1,000s of players.

Let’s say each of those networks needs three new pieces of creative content a month (it may and should be much higher). That means almost 20,000 piece of creative a month to produce.

So who is doing it?

We have a whole industry endlessly recycling or repackaging the phrase Content is King, and I’d suggest there is not a single dominant content shop in the entire digital signage marketplace that could with a straight face declare itself the Content King.

Yes, there are good companies out there. Some are friends. Some are clients. But they are relatively small players on a broad landscape. There is no company that really stands out as THE guys. The company that’s doing the most business. The one that is usually top of mind when clients ask.

I asked Keith Kelsen, who has written a book about content, when I saw him in Las Vegas at The Trade Show Formerly Known as Kioskcom. He threrw a company name at me. I said, “No way.” Good company. but no way are they dominant.

I’m not entirely sure why no one company has stepped up and grabbed significant market share, but I think there are a few reasons:

1 – Existing production houses that have gone into this line of work are accustomed to charging serious studio rates for broadcast and interactive customers. With studio rates usually well above $125/hour and even simple spots quoted at $1,000-plus, these are numbers that make start-ups and existing businesses weak at the knees. Business overhead and company cultures that foster excellence drives those kinds of figures, as does the knowledge that those numbers are well below the $1K per second rule of thumb of major creative agencies. I know a retailer that has a nice – not great – but nice network in hundreds of stores, but it only changed out a piece of content once a month, because its agency – and only a small regional one at that – costs were too crippling to allow more than that.

2 – The big agencies aren’t interested in this space, at least yet, because the risks outstrip the rewards. The medium and audience are moving targets. There are no real standards. Budgets are a fraction of what they are for easier (as in there are standards to apply) TV work. Depending on who you listen to, it;’s also argued many agencies haven’t really crossed the digital divide to interactive, web-based work, never still emerging stuff like DOOH.

Curiously, there is far more supply than demand in the mainstream and digital agency sector and calls for consolidation.

3 – There are plenty of very good freelancers who don’t have any of that overhead or baggage, and can charge way less, but they are generally lone wolves. They are the “I know a guy who does that stuff” guys who get their work from their contact networks. They don’t market themselves. so they never really develop an industry profile.

4 – Some “solutions providers” are baking entry-level creative work into their offers, using in-house hires or their “guys” they’ve developed in a virtual go-to network. That services the entry-level, not-much-more-than-a-juiced-up-poster market, but that stuff has more to do with manufacturing messages than generating creative work. A lot of the software guys have templates that can be used to crank that stuff out – but the pieces, while polished enough, are templates. They do part of the job, but not all of it.

5 – Nobody, as far as I can tell, has meaningfully claimed the middle ground in price and capability between the cheap entry-level stuff and the high-end work that is often great, but in practical terms, unworkable in operating budgets.

As consultants, we try to get our clients heads around the idea that creative work needs to be engaging, and there needs to be enough of it to sync up with the amount of time viewers are in the presence of the screens. It also has to be refreshed regularly so it doesn’t go stale in the minds of viewers. Makes perfect sense. But then somebody runs the numbers on the anticipated creative invoices and comes up with a monthly production cost total that causes a severe case of Restless Leg Syndrome for the company CFO.

We also have end-users in this industry who either don’t have the experience to know good creative when they see it, or do know what it looks like, but expect Veuve Clicquot quality at Milwaukee’s Best prices.

Maybe it’s out there, and I just don’t know (and I assume there will be comments from companies who say they are the answer), but whoever decides to go hard at it has to pretty much forget about the norms.

An industry friend sent me a note recentlyt with a link to a piece about the collapse of complex business models, and he related that to production challenges in this industry. This is the post: http://www.shirky.com/weblog/2010/04/the-collapse-of-complex-business-models/

This is a very different industry from mainstream media and a lot of the old rules and ways don’t apply. It’s likely true that gaining serious market share in creative production means forgetting how things have always worked with hours and pricing, and then stripping out costs, creating new efficiencies, and delivering polished work and professional processes at rates that network operators can really afford.

I know there have been business model stabs at creating a “content factory” and there are people and companies promoting work being done offshore, as in China. The samples I have seen have so far have suggested that ain’t the answer (though in the right hands, it could be part of it).

There’s a big market waiting for the company that puts the message, infrastructure and processes together to seize the market.

It would seem obvious that replacing a static sign with a digital screen, or adding a screen to an environment, would automatically create more awareness for whatever was being communicated. It’s easy to see that putting really great video (herein generally referred to as “content”) on an HDTV that someone wants to buy is a foregone conclusion. But that is not the case. In situations where the shopper is buying a staple, like shampoo or toothpaste or milk, the shopper is so focused on the mission at hand that almost all signage, static and digital alike, is ignored. The potential to miss the audience can be frustrating to a network operator that has spent enormous amounts of money to put in a network and wants to see a return on the investment.

The ultimate goal of digital signage is to change behaviors. It could be to navigate through an environment, or learn more about a product, or catch up on the latest news. But digital signage alone does not allow the operator to be better at communicating.

You need terrific content.

The ability to engage a viewer with outstanding visual content is not easily accomplished. The awareness and respect for content is increasing because providers continue to learn about the medium. The common battle cry of “It’s Not TV!” runs through the industry. It isn’t TV in the traditional sense of what we sit down and watch in our homes each night. But it is a screen designed to communicate, and the understanding of how to communicate is evolving as fast as the industry itself. It is TV, just a different kind of TV.

In the past, the novelty of a screen in a store or elevator or subway was enough to allow the network operator the freedom to simply hang a screen and turn it on. Now we are seeing screens treated as vital elements of design, being built into the physical structures. This completes the experience for the end-user and the audience. The screens and content look like it was made for the store, rather than just added on at a later stage in the environment’s evolution. Venues are constantly looking for advantages over their competitors, but brand logos, colors, and store layout can only go so far. Compelling, relevant content can give one environment over another by bringing the environment to life.

As much as good content has the ability to engage a viewer, bad content can detract a viewer just as fast.

High quality, relevant, and compelling content is the most important feature to digital signage in any application. It is the reason you’re adding the screens. It can connect you with viewers in ways never before achieved through the traditional methods of communication. Whether you are a brand, or a product, or a service, or just someone who has information to share, digital signage gives you the ability to engage the viewer with your message.

There are myriad variables to consider when creating good content. What works in one retailer, or waiting room, or on a billboard, will not work on screens of the same nature because the audience makeup is different each time. This creates havoc for providers who are trying to get the right content in the right place at the right time. But there are a few basic principles that can be understood and applied across any medium that will give the provider and/or end user great content, great impact, and a greater return on the investment.

Great content tells a story. The unique environments and audiences give creators the opportunity to tell more intimate stories with greater impact, focusing on key features of the subject that appeal to the viewer at that particular time and place, rather than trying to cover all the bases in a short message you may find on television at home (a good reason why “It’s not TV”). Because digital signage is a more dynamic way to communicate, providers can leverage the creative resources to tell a better story about their brand, or product, or service. For example, a cell-phone provider may be able to show live action of the cell-phones screen and interface (think of the iPhone commercials) as an advantage over other cell-phone manufacturers. This has tremendous impact at the point of sale, where the phones are on the shelf, where customers ready to buy. Great content creates competitive differentiation.

Great content can engage a viewer like no other type of communication. And with the growth of interactivity through touch screens and mobile devices, that engagement can become personal and inspirational. Brands, products, and services can now connect with customers and consumers at all points of interaction, from the internet at home to touch-screen kiosks in the store to mobile social media that allows users to define a brand or product in their eyes. The effort to change behaviors and create impact is tremendous when the customer becomes engaged with the message.

Great content makes money. In the case of retailing, relevant and compelling content will encourage a viewer to purchase a product. The revenue generated from more product sales in turn becomes a budget that retailers can spend on bigger and better digital signage applications. The technology of digital signage alone does not generate the revenue needed to purchase a network. The largest revenue generator for digital signage is the content and the amount of money someone will pay to put a message on your screen.

Here’s the catch: This is easier said than done. The research and strategy that goes into creating an engaging network can be extreme and often nebulous. The factors of audience demographics, environmental attributes, and advertising requirements all play very heavily on the composition and execution of great content. For example, creating content that runs longer than a person’s dwell time at the point of viewing will keep the viewer from getting the message because she has already moved on. Another example is sound. In a noisy environment, audio will not be effective in communicating a message, so the message should be entirely visual. Any aspect of the message in audio can and will be lost on the viewer because he cannot hear it.

However, the front-end work that goes into understanding the variables of compelling content can pay dividends in the end when the understanding of important features creates guidelines from which terrific content, and viewer engagement, can be achieved.

Content is that important.

A core factor of the retail customer experience is advertising. But, how we speak to a potential customer versus a point-of-sale customer is not the same.

Sacrifice for the Greater Good

In a consumer’s home, the advertiser competes with everything; there is nothing “endemic” about a TV program, a magazine, or the internet. During a break of a recent sporting event I saw the following ads: Nextel (Wireless), Taco Bell (Food), Zantac (Medicine) Progressive (Insurance), and Ford (Auto). Each advertiser thinks you need their product more than anything else.

Something about the proposition will be sacrificed for the greater good of brand awareness due to factors like broadcast running times and lack of actual products or services. You can only drive a car when you get to the dealership. You can only experience a wireless device by actually using the wireless device. Lifestyle benefits are a core proposition of broadcast advertising; it’s easier to show how your life will be with the product because you can’t actually use the product…yet.

Terrific creative and understanding the audience and the environment is crucial in winning a viewer’s attention.

But retail is different. Very different.

At retail, the competition narrows down to the category. When Nike competes with Budweiser at home, it’s only a matter of who likes shoes and who likes beer. But when Nike competes with Adidas and Reebok and K Swiss and Puma on a wall of footwear, the category focus by both the customer and the advertiser at the point of sale is paramount. This is where the brand “wins the last 10 feet.”

And, in many cases, you can use the product. You can try on the shoes or the clothes. You can test drive the car, or make a wireless connection.

So why do advertisers and venues accept external advertising for the network in a retail environment? Why do so many brands and manufacturers just re-purpose their 30-second awareness ads to run on the shelf?

The Push (or Pull) for Better Content

The simple answer is insufficient data to support the theory that custom content does any better at selling a product than regular broadcast advertising. Numbers get thrown around all too easily: 70% of shopper decisions are made in-store. Or is that 50%? I recently read that POPAI’s MARI project claims that only “… three percent of in-store marketing communications is currently passed and seen by shoppers…” So that means that 97% is ignored? Or is it missed completely? How does this affect the 50-70% of shoppers who make the purchase decisions? In a 2008 study from IMI Consumer Track, North Americans were asked what influenced them to purchase brands they don’t normally purchase. The respondents said they were influenced by an ad they saw on TV 24% of the time.

Statistics, always subjective and often misleading, should compel an argument, not decide it. They should not stand in the way of engaging the customer. Instead of believing in one side of the statistic, look at the other side: 50% may be influenced, but 50% are not. 50% is a really, really big number.

Why should retail marketing push brands and advertisers to create custom content?

You have to stand out. The amount of retail environmental stimuli waging a war for the customer’s attention is close to immeasurable.

Re-purposing advertising does two things: It tells the customer what she already knows, and it tells her you don’t have anything to add to your proposition. Result: She deselects you because there are other, newer things to look at.

Decisions. Decisions.

The customer’s mindset is different in the store. Marketers must stop believing that “purchase decisions” and “unplanned decisions” are the same thing. A purchase decision usually starts outside the store.

I need bar of soap.

Where do I get soap?

At the store.

I’m going to the store.

I’m at the store.

I’m here for soap.

There’s the soap.

External advertising starts the path to purchase by compelling the viewer to decide whether or not he needs what you’re selling. In-store advertising must pick up where broadcast left off – at the curbside or front door – and guide the customer along the path, not simply reiterate what he already knows.

Purchase decisions may lead to unplanned decisions. An unplanned decision is based on impulse. Oh…I need shampoo, too. While I’m here… Where the two types of decisions mix is in the shopper’s mindset at the point of sale. Therefore, the approach to the customer should be different.

Advertising is part of the equation, not the solution; it must work in tandem with everything else.

The Effort Starts Here

The marketing team must collaborate with merchandising team to create that holistic experience. Merchant teams will negotiate massive deals with brands for product placement with little regard for how the product is actually presented to the customer. A big victory for the brand is a prominent location, but the surrounding presentation materials may not complete the entire experience. Marketing must sit at the table and be a part of the deal so that proper attention can be given to the messaging that accompanies the product.

To this end, the need for extra money to create custom content will diminish. The content and production will be part of the negotiated deal for the product life-cycle in the store. It will not be an afterthought tapping into other budgets. Further, because of its separation from any other kind of advertising, it will give marketers the ability to better measure impact.

While statistics may support some of the arguments, they should never make a case. Knowing that the customers at home and customers at a store are different should warrant the argument for custom creative at the point of sale.

Terrific creative, coupled with understanding the audience, is crucial in winning a viewer’s attention.

The thing that I enjoy most about shows like DSE is connecting with industry contemporaries and those who I have established connections with via online communication platforms. Having the opportunity to meet face-to-face with industry friends I have made through this blog, Twitter, Linkedin, and other social media channels is something that I cherish. At DSE, it’s the people you meet and the conversations that you have which make the event unforgettable. I always welcome the opportunity to meet new folks and share interesting conversations with people who exude passion for digital signage, retail customer experience, emerging communication platforms, etc.

I shared conversations with a wealth of uber-smart individuals on topics such as location-based mobile services, real-time news, the future of digital out-of-home media, social media pollination across the enterprise, using digital technologies to enhance internal communications, digital signage as a brand/customer experience gateway, emerging mobile platforms, etc. It’s in these conversations that industry participants and I waxed analytical on digital signage’s role in our communications ecosystem and the technology’s advertising future. To those who I shared conversations with, thank you. To those who I didn’t get a chance to connect with, please feel free to reach out if you would like to talk (best way to reach me is via email: david.weinfeld@presetgroup.com). I am always happy to talk and help out in any way that I can.

Thoughts from the Show Floor

I don’t think that a single person who attended the show would argue that the technology on the event floor wasn’t impressive. As you entered the expo hall floor, it was like a treat for your eyes. Digital signs stretched as far as the eye could see. From thin screens to video walls and outdoor displays, the technical side of the industry was more than well represented. If you love digital signage (I assume that you have at least a passing interest in the technology if you’re reading this blog), your feelings about the environment would run parallel to my own.

The technology that powers the digital signage and digital out-of-home media industries was front and center on the show floor. While screens, media players, and interactive elements stretched across every square foot of the Las Vegas Convention Center, such a setup ran counter to the goal of educating newcomers and longtime attendees about digital signage and future industry developments. For anyone that was new to the digital signage industry, they likely left the show floor with more questions than answers.

An enormous focus was placed on digital signage technology at the detriment of featuring solutions that solve real business problems. The show floor lacked balance between the hardware/software side of the industry and the experiences that the technology powers. Too much emphasis was placed on the physical boundaries of the technology. Many missed the chance to feature digital signage as a gateway to expansive customer and brand experiences. The technology, and all of the bells and whistles, are great to look at it, but the sheen of these objects fade if they aren’t framed within the greater context of digital signage’s far reaching impact.

Many people I spoke with described the show floor as “cluttered” or “difficult to navigate.” For some, it felt like a summer camp reunion, drawing the conclusion based on a limited number of attendees outside of the digital signage and technology industries. If you got a nickel for every agency or brand rep. that was at the show, you would barely be able to afford a fast food combo meal.

One industry friend who is extremely knowledgeable on digital signage technology even admitted that he dreaded walking the show floor. This sentiment came from someone who loves digital out-of-home media. I can understand why he felt this way. For anyone who was new to digital signage, these end users were met with software companies all appearing to do the same thing (some claiming they could do more, others claiming best-in-class solutions, and none willing to admit that a potential customer would be better suited speaking to one of their competitors).

One of the few advertising agency reps. in attendance equated the expo to a “picks and shovels show.” He found the show lacking in relevance to his specific discipline. He commented that his agency colleagues don’t have anywhere near the same interest in technology as he does. They just want to know that it works.

A screen is a screen, but a true digital signage solution is an experience. This is an ethos that needs to be shared across the industry and, most importantly, carried throughout the Digital Signage Expo.

As the mobile web and smartphones approach mainstream adoption, we will see more robust uses of mobile technology in retail environments. The growth of the mobile application economy, spurred by the launch of the iPhone, has succeeded in bringing tools to market that make our daily lives easier (inside and outside of the home).

“We are at the cusp of this technology really driving a lot of activity during the shopping season,” said Stacy Janiak, United States retail practice leader at Deloitte. “It is both an opportunity and a challenge for a retailer, because you can have a consumer who can cross-shop your store with other bricks-and-mortar stores or online, all from the convenience of your aisle.”

Retailers need to embrace the mobile web and smartphone applications. Consumers are increasingly using applications from companies like ShopSavvy, RedLaser, and My Coupons to ensure that they are getting the best deals at retail. While it can be argued that applications like ShopSavvy and Red Laser, barcode readers for real-time price comparisons, hinder bricks-and-mortar retail, these consumer-based tools, in truth, challenge retailers to evolve. They push retailers to learn more about their customers, react more adeptly to changes in consumer demand, and enhance their shopper marketing efforts.

When a consumer pulls his iPhone from his pocket and scans the tag of a leather jacket to get price comparisons from nearby retailers and e-commerce sites, it creates a clear opportunity for the retailer whose store he’s in to rise to the challenge. Accepting the fact that consumers have product buying guides, price comparison tools, customer reviews, etc. at their fingertips, pushes retailers to adapt to a marketplace now dominated by empowered consumers.

Whether it be in the form of matching prices customers receive from mobile applications, delivering real-time mobile coupons, offering customer loyalty incentives, or providing value-added services at no cost, offline retailers must flex their marketing, customer service, and sales muscle to stay competitive.

If someone standing in one store scans a product with ShopSavvy, for example, a retailer down the street could deliver the shopper a coupon for the same item. A major retailer is already doing that in a few test cities, including Seattle, said Alexander Muse, co-founder of Big in Japan, the start-up that created ShopSavvy.

Other applications, including Yowza, use the GPS location information in cellphones to send shoppers coupons for stores within walking distance of where they’re standing. “This empowers consumers to make a smart decision,” Mr. Muse said. “Already, retailers are starting to figure out, ‘I need to be in this game.’ ”

There was a fantastic article in Friday’s New York Times that detailed the depths to which mobile applications are being utilized at retail during the holiday season. The piece is a must read. Not only do I recommend the article, but I implore you to read it.

The new American Eagle store has an absolutely towering 25-storey wall of tight pixel LEDs rising from a corner off the landmark square, and wrapping around it. Other stores and media companies have also spent Lord knows how much making themselves noticed.

It’s all quite amazing, and has very little to do with digital signage as it plays out day to day, Yes, they are signs, and they are digital. But the comparison end pretty much there.

What these big boards tell us, though, is just how important it is to be big with visuals. Most of what’s deployed in the digital signage industry right now is, quite arguably, too small for its surroundings. A screen that eats a wall in someone’s main living area at home looks relatively tiny hanging from a high ceiling in a 100,000 square foot food barn. Unless a screen is down at eye level or nested with product, a big LCD or plasma in many settings struggles to get noticed.

The novelty factor of big flat panel monitors is long gone, so people aren’t looking at them because they are there.

So what do you do? Try other stuff.

In retail, and the other indoor spaces that are the mainstream of what we called digital signage, big LEDs don’t really work. Too costly, too bright, and while the image reproduction on the indoor versions can look pretty good from a distance, up close, the visuals look terrible. The LED bulbs are too far apart. They have a role, but a limited one.

Big projection screens present too many maintenance issues and physical challenges, and the visuals never look great in a bright room. Sunlight and ambient light are the enemies and may always be.

LCD and plasma walls that have screens stitched together look much better, but even the newest ones still have very noticeable seams between the screens, and are a lot of work to keep all looking the same. They have presence, but what gets put up tends to look compromised from the moment these walls turn on.

That’s why I was very intrigued about a new product being rolled out by Christie Digital, a company that has been in the projection business for many decades, but has now developed a product that takes the display business in a new direction.

I did some writing for the company in the lead-up to the launch of MicroTiles, so there is my conflict declared. But that’s where my interests end. I am writing about the technology now, because it deals effectively with the BIG thing.

The tiles have very bright LED light engines inside self-contained units that can stack and join in any number of shapes. So instead of a video wall always being a uniform wall, it can be as jagged as a bar chart tracking the stock market. It can wrap around door frames. It can run up support columns, or look like an LED ribbon board in a sports arena.

The difference is that the clarity and color reproduction are superior to LED and better even than the monster LCD and plasma stuff in rich guys’ home cinemas. The units will last for more than seven years at 24/7 usage. And they service fast and easily from the front, and are self-aware, meaning the Tiles talk to each other and calibrate on the fly. Where regular video walls get patchy from screen to screen, these tiles steadily compare notes and sync up.

And the seams are 1 mm. That’s it. Hairline.

Gorgeous stuff. A little pricey and meant for now for flagship stores and big-ticket venues. But over time, these units could be very commonplace.

The reason: They deal with all the issues and needs of BIG.

That is very good news for all of us. A lot of retailers are not yet doing digital signage because what they have seen in store has large been uninspiring and lacking true impact. Ad sales on many networks struggle because the screens they install doesn’t get the notice numbers they need.

But when display technology can get fitted into these sorts of environments and both dominate and fit the space, that really is BIG.

The retail world now sees more money spent on a single point-of-purchase display than many stores spent on an entire campaign two decades ago. The effort on getting the customer to choose you rather than the other guy rockets freely into the millions of dollars without so much as a free ornament (the plastic kind) for your tree.

Today, the brand reach created by a campaign extends beyond anyone’s wildest dreams of engagement. The internet and social media have allowed end-users to absorb campaign material and keep it forever, literally. We enjoy reminiscing about great retail campaigns from bygone days thanks to the likes of YouTube.

Campaigns are no longer the five or six major calendar holidays they used to be, either. Campaigns revolve around calendar events for dozens of cultures. The holiday campaign includes Christmas, Hanukkah, and Kwanzaa, and opens the can of slogan worms on what to call it. Happy Holidays? Merry Christmas? Happy Hanukkah? All of them? Brands and retailers find themselves walking a fine line between spreading good cheer and kicking political correctness in the shin.

And, campaigns are no longer cultural events; they are social events. Best Buy devoted the entire month of January to its Home Theater campaign so that you could have the perfect home theater for the “big game,” the Super Bowl. Some retailers build promotions around the Academy Awards. They have a countdown leading to it. The day after the show, the movies that won awards are proudly displayed in the front window DVD shelves, and you can find the latest celebrity fashions online to purchase for yourself.

But there is a point where the efforts of branding via campaigns become suspect. If “brand purpose” is to create an ecosystem in which people can engage, then the idea of campaigns is contentious. Brands are not built through episodic events; they evolve through long-term relationships.

When brands spend too much time and money on a campaign, they spend too little time on the brand itself. While working at Best Buy, I spent almost 10 months of every year in projects that concerned a campaign. The other two months were spent cleaning up from the other 10 months of work. I rarely spent ample time simply focused on the brand — the foundational engagement with customers that we strived to achieve.

It was kind of like putting a new coat of paint on an Edsel.

I believe that in this culture of short attention spans and fast knowledge, it is much more important for a brand to embrace the engagement with the customer and utilize campaigns as talking points, not as brand builders. Campaigns are conversation starters, not conversations. They are a great way to get customers in the door, but not very good at keeping them there. When a campaign ends, you should never hear your customer ask, “That was fun. What now?”

How do you keep them after the campaign? Some do it by hammering another campaign down your throat. The back-to-school campaigns seem to start earlier each year; they cannot get here fast enough on the heels of the 4th of July campaigns (in the U.S.). That doesn’t work. At some point, the campaigns stop.

You build your brand by focusing less on how you look during a particular time of year and more on how you look at all times.

When building a campaign, three questions come to mind:

a. How does this campaign support our brand as a whole?
b. How will this campaign be perceived AFTER it expires?
c. How does this campaign work with the next campaign?

These are only three questions, and they may appear elementary, but when you have several internal teams working on a campaign, you will get several different answers, and not all of them will be right. This is crucial in knowing the role your brand plays in the culture, and the value you have in your customer’s lifestyle the next day.

Effective brands build relationships; they do not have affairs. Affairs always end bad.

Like the first two in the series, it is full of good insights into what’s happening in stores. It is also suggests digital signage is woefully ineffective, and anyone reading this report without thinking it through and getting some perspective would quickly toss out the concept of in-store digital as something even worth pursuing. It’s that bad.

As you might imagine, that’s a bit of a problem for companies trying to sell the dream into that sector.

Miller Zell and a research firm did a survey of 999 shoppers in March of this year “to determine which in-store marketing communications elements influence and inspire purchase behavior.”

The research revealed and confirmed 60 per cent of brand decisions are still made in the store, and that in-store advertising is more influential than out of store. It suggested mass merchandise stores are where people prefer to shop and convenience stores are the least favourite. And it suggests the in-store experience is incredibly important, with more than 2/3s of respondents saying the experience was a make or break factor for them in choosing where they shop.

Notice-ability sorted out what was actively noticed in stores by shoppers, and what was not. At the top, end-caps and merchandising displays, with percentage rankings in the 60s and 70s.

At the bottom, digital signage, at a woeful 10 per cent or so.

Floor graphics did better!

Digital signage did a little better when it came to purchase and brand choice influence, but not a whole bunch. It ranks 9^th of 11 choices, and just ahead of ceiling banners and overhead mobiles.

Now at this point you may have closed your laptop, had a last sip of your coffee and headed for the roof of your building. It really could seem awful and hopeless.

But let’s stop and think about this. I can pretty effectively argue that the reason the numbers are so bad is that the execution, to date, has been so bad in retail.

One of the reasons digital screens are rated right down there with ceiling banners and overhead mobiles is that they have been hanging from the ceiling or high up on a wall, just like ceiling banners and mobiles. Except they are a fraction of the size. No amount of zippy motion graphics in ads will get people looking if the screens are well above the normal field of vision and are, in relative terms, tiny in the context of the retail environment.

An HDTV that looks massive in your living room is just a speck on the horizon of a big box store, and even in smaller retailers. And it’s just a flat-panel TV, and they’re everywhere. That novelty factor is long, long gone.

Sprinkling a few screens around a big store, hoping they will get noticed and have an impact, really isn’t much more than wishful thinking, and this sort of data really drives that point home. To service the general environment of a large retail space, you need equally large displays that actually command attention and set the tone and experience that shoppers clearly want.

That technology is coming, but the other, easier route is to use what the research tells us, and get the screens in positions where they are noticed. Those are the ends of aisles, merchandise displays, department locators and at the shelf-edge in the aisles.

I have a client that has been working with a major brand on a merchandising fixture that includes a large LCD screen integrated into the fixture, with strategy and programming specifically tuned to working that fixture hard with rotating promotions and regularly changed SKUs. The fixtures where wheeled into place in stores and the results were immediate and phenomenal, with sales jumps against control stores well, well into the double figures across scores of sites. The program has been doubled in size.

Other retailers that have put screens in positions where they can’t help but be noticed, and where the content is well-executed and steadily refreshed, are seeing sustained sales increases that easily justify the effort and cost. The recently opened Microsoft store is a fabulous example of a retail design that really exploits the possibility, with full walls of tiled screens. Expensive, sure, but not all THAT expensive. Hugely impactful, though.

Miller Zell also told me (I asked) that another reason the numbers were low was critical mass. There aren’t all that many retailers yet with real screen networks.

This stuff DOES work, but getting it right takes a lot of careful consideration and use of the information available, LIKE these kinds of reports. The days of retailers and network operators “hanging and hoping” with their screens have to end, and people in the industry have to take a role by flat telling their clients, “That’s not going to work.”

Thanks to the current shift in content creation, distribution, and consumption, emerging media companies stand to reap the greatest gain by turning old business models on their heads. It’s important to remember; however, that there are elements of the old guard that are worth preserving and building from.

I’m not here to echo the death of newspapers or other forms of traditional media. I think we can all agree that newspapers, magazines, TV, etc. aren’t going anywhere. As we enter the age of real-time news and constant communication, they may not look the same, behave the same, be distributed in the same manner, or rely on their current business models; but it’s illogical to think that pillars of the media industry will just vanish. Just as companies in a vast array of industries have had to adapt in order to stay relevant and survive, so too must traditional media companies reimagine themselves in a world of universal publishers and empowered consumers.

In the same way that traditional media companies must expand beyond their once safe silos of operations, digital OOH networks must not fall into the trap of fencing themselves off from other media outlets and content models. Rather than solely focusing on the DOOH platform, which can bring stars to they eyes of the most seasoned entrepreneur, these organzations must embrace the opportunity to become 360 degree media companies.

The disclaimer here is that I’m not promoting a DOOH media company launch a radio network or newspaper; or create business lines that are incongruent with the organzation as a whole. But, what about launching a podcast series or a digital newsletter? For niche place-based networks in doctors offices and veterinary clinics, distributing content through media platforms like these can serve to spread the reach of the network’s brand. Cross-channel distribution can increase a DOOH network’s status in its respective vertical, and create opportunities for its content to be discovered by a broader audience.

The financial barriers that once restricted a new media company’s ability to reach a mass audience are now gone. You don’t need radio towers, satellites, or large infrastructures for distribution. A blogger, an upstart online magazine, or DOOH media network all have the opportunity to become pillars of our media future. To do so, they need to be ready to adapt and expand at a moment’s notice.

What is the purpose of a digital sign?

Not “What kind of content?” or “Where should the TVs go?” but the actual purpose of a screen inside a given environment (whether it’s point-of-sale, point-of-transit, or point-of-wait). As networks become more ingrained in the fabric of our culture, the ideal purpose of a network is considered from two distinct camps:

BRAND. It’s all about Brand; the logo, the energy and the culture of Brand for the masses. Digital engagement should be an experience. We don’t need to sell stuff with screens, we already do that with employees and price tags. Anyone can “sell stuff.” We need a communication point around Brand. A digital sign is a great way to educate viewers about who we are, what we stand for, and how your life is better with us in it.

Or

ADVERTISING. Sell. Sell. Sell. Sell the hell out of it and forget about “branding.” People know where they are. The big giant sign on the door and the employee with the properly colored polo shirt are enough. A screen should promote products and services and increase the value proposition, specifically those with higher margin. And providers should be paying top dollar to be on the network because no one was ever dazzled by a static sign on a shelf. A digital sign is a great way to educate viewers about what we sell and how these things can make your life better.

I have actually heard some of these comments come from leaders with substantial acronyms after their names. But sometimes the people responsible for trying to build a better mousetrap forget about the mouse.

Marketing 101: Relationships are key to positive value for both the marketer and the customer. Regardless of content minutiae, digital signage is an enabler, dynamic communication that generates engagement between the marketer and the viewer.

I firmly believe that digital signs do not create transactions. Digital signs create opportunity for transactions.

This may seem elementary, but as our industry grows and we begin to truly understand the devilish details of “right content, right place, right time,” we must never forget that the true purpose of a digital screen to enable the viewer.