A recent article from technology and advertising blog PSFK asks whether or not retail-focused smartphone applications make self-service solutions redundant. Even though the piece makes positive mention of Microsoft Surface and Intel’s intelligent digital signage proof of concept, it lists six reasons why retailers should exclusively focus on mobile development:

1. The phone is personal. It already knows who you are and can access what you like and even your purchase preferences like clothing sizes. With an interactive display you often have to start from the beginning.

2. The phone is social. The phone knows who your friends are and allows information before and after purchase to be shared between you and your peers. Sure, interactive displays can be connected to social media but are you really going to put your password to Facebook into an interactive display in a store that you visit once a month?

3. The phone is touchable. Would you rather tap away at the screen on the phone only you use or would you want to touch the smudged screen of the chain-store retailer where thousands of people pass through each day?

4. The phone is consumer-powerful. The phone keeps the power in the hands of the consumer while the interactive display offers the controlled world of the retailer. The interactive display doesn’t provide access to the world of group buying sites, deal services or comparative pricing apps.

5. Because a retailer can doesn’t mean they should. Just because WalMart stores have TVs throughout with advertisements running, it doesn’t mean that this service must be replicated across all retailers. Stores want to program specific environments that create subtle experiences that drive sales. A TV blasting ads – even if it’s interactive – might actually be a turn off for shpppers in many instances.

6. The phone is becoming sensitive. Technology is evolving to allow the phone to notice RFID tags and other ‘internet of things’ technology.

The above points are valid, but they look at the retail sector from a singular perspective. Smartphones are becoming an increasingly integral component in how we shop. They are not, however, the end all and be all of the consumer shopping experience. Just as the functionality of cellphones are growing more advanced so too are interactive digital displays. Retailers are right to focus significant energy on developing applications for mobile phones, but they must also devote resources to alternative in-store communications channels. Mobile is great, so too is digital signage.

What were once little more than computer stations in retail stores are evolving into immersive multi-touch gateways. Interactive video walls and intelligent self-service solutions are beginning to be integrated seamlessly into store environments. Their flexibility begets their utility. They function as integral parts of a store’s atmosphere. They can exist as omniscient sales associates, multi-user entertainment systems, or large-scale online catalogs.

Mobile phones and interactive digital signage should not be looked at as being mutually exclusive at retail. One doesn’t diminish the other. In reality, when they are positioned to enhance each other, consumers reap the greatest benefit. As I detailed in an earlier post, mobile applications and digital signage are allies, NOT adversaries. Whereas the mobile channel is geared around one-to-one interactions, digital displays at retail can be used to extend the engagement to a broad segment of consumers.

Mobile Applications and Digital Signage are Allies, NOT Adversaries

An in-store digital signage network is a one-to-many communication platform, yet still has the potential to foster a deeper connection than a one-to-one mobile interaction. Such is the nature of advertising when the medium is part of the message. It doesn’t mean that one platform, mobile or digital signage, is better than the other. It just illustrates that they offer alternate means of achieving the same goal: Lead Customer X to Purchase Brand A.

Rather than looking at the two platforms as adversaries, one harnesses each technology’s full value when pairing them as allies. Two arrows are always better than one. And, when one medium can increase the impact of another – use them together.

There are times when a brand may be better suited to use mobile instead of digital signage, and vice versa. But, in reality, given the fragmented nature of today’s media environment, its best to develop content for multiple platforms and target your message to reach consumers across various outlets.

Integrating Mobile and Digital Signage: Opportunities Abound

When given the choice of viewing content solely on a smartphone or interacting with the same content on a massive multi-touch display, which would you choose? I would go for the interactive digital signage, selecting the option that extends the boundaries of the user experience. What can be considered more exciting than selecting one option or the other is alternating between the two. Using a mobile phone to interact with a digital screen can create a unique experience that draws in multiple users and builds significant brand awareness (SEE: Locamoda, MegaPhone, Snaptell, Akoo)

Thanks to the portability of content, and innovations in the realm of cross-platform communication, shoppers can move between mobile applications and digital signage without skipping a beat. Each platform can function as a unique retail touchpoint, whereby each shopper has the ability to choose his own digital path though a store.
You might also like:

The show was great!

Not only did I enjoy countless engaging, vibrant conversations, I also came in contact with a wealth of exciting new technologies. The attendance was strong. Optimistic energy fueled the show’s atmosphere. You could tell that attendees recognized how important it is for them to integrate customer-facing technology into their environments.

I had to navigate large crowds throughout the day, especially as I walked through the Innovation Station, a collection of hand-picked retail solutions driving the future of the industry. Kudos need to be given to CRI for bringing together such a great, and diverse, array of solution providers.

The IBM booth (more like a control center) was picked with digital goodies and innovative retail solutions. Just like at the Innovation Station, I had to navigate crowds of engaged attendees to get from point A to point B. Within IBM’s “showcase,” I saw a range of technologies, including location aware mobile applications and in-store augmented reality displays. The company sees the writing on the wall, and knows that the world of bricks-and-mortar is undergoing an in-store digital revolution. IBM sees its deep involvement in various aspects of retailers’ operations as a clear foundation on which to build new media experiences.

NRF 2010 will be remembered for a number of different things, one of which is sure to be the number of tech giants showcasing new digital signage solutions. The show saw digital signage solutions from tech stalwarts like HP, Dell, Intel, Microsoft, and IBM (just to name a few). It is an exciting development for our industry to see the aforementioned “big boys” step into our pond. I’m not saying that they’re not going to stumble here and there along the way. As these companies acclimate themselves to the world of digital signage, they will learn from their mistakes and discover nuances of the market. Their depth of talent, experience, sizable R&D departments, and tech industry leverage is sure to drive DS forward. I see it as a ringing endorsement of the auspicious future that lies ahead for the digital signage marketplace.

With companies like Intel and Microsoft taking a major interest in digital signage, such activity is guaranteed to accelerate the growth of the industry. Not only do many of these DS newcomers want to grow their presence in the sector, they want to take leadership positions therein. We all know that such a thing is easier said than done, but I’m sure that some of the executives I met with are going to have a major impact on this industry. One such individual is Jose Avalos, the Director of Digital Signage at Intel.

Unless you were living under a rock, you heard about the multitouch, holographic intelligent digital signage concept that Intel featured at the show. Equipped with anonymous video analytics (facial recognition software from Cognovision) and an array of top-notch digital and technical features, the innovative solution captured the imagination of attendees. I must applaud Intel and Microsoft for recognizing that one must make a big splash when entering new markets to get people’s attention. Jose Avalos sees and understands the lasting place digital signage will have across the retail ecosystem. Speaking with Jose, even for just a few minutes, was illuminating. He spoke passionately about Intel’s approach to the industry and desire to deliver solutions that will enhance how we shop.

Looking around the show, you couldn’t help but feel the energy that circled the Javits Center floor. The time is upon us to grasp the ship carrying the future of retail. The vessel is filled with impassioned individuals who see the potential inherent in bringing real-time, efficient, and smart technology to the corner store and neighborhood shopping mall.

I welcomed connecting with professionals in the show’s Design Studio. Design houses and architects are definitely keen to the coming flood of technology at retail. I connected with RFID providers, audience analytics firms, customer loyalty companies, and automated retail companies (I love ZoomSystems). With everything I saw, and all of the people I spoke with, I can confidently say that the tide is rising. If you want to ride the wave of new retail engagements and experiences, you better jump on board.

The folks at VeriFone, who just acquired Clear Channel’s Taxi Media operations, are definitely thinking beyond the payment space. With VeriFone’s technical footprint across retail and a range of other industries, they are surely a company to watch as media begins to get further integrated into these solutions. It’s a natural progression to equip POS systems with small-form factor displays that enhance the retail environment.

While Intel’s partnership with Microsoft in developing a multi-touch retail solution has garnered the most press from the show, I was equally captivated by another solution from one of Intel’s partners at NRF. Mark my words that the company I mention next is one that will have a long, prosperous future in the digital signage industry (and beyond!).

YCD Multimedia displayed the robustness of the company’s software solution in driving a nine screen Samsung video wall (plus a tenth interactive screen) from a single player (powered by an Intel processor, of course). The video wall was capable of playing out 9 different channels of content, unique to each screen. I was blown away by the fact that the system was running from one media tower. The screen displayed 4K content, meaning 4X HD resolution, given that each display was running at its native 1080p resolution.

That by itself was impressive, but then Josh Kampel, YCD’s head of business development, took the covers of off the company’s most recent innovation – RAMP. An advertising management system that is as intuitive and beautiful as it is robust, RAMP bridges corporate and local network control, while supporting easy content creation, data management, playlist creation, and campaign scheduling. Their solution is a next step for the digital signage industry.

With everyone that I met (it was a pleasure), and all of the technology that I saw, going to NRF was like walking into FAO Schwartz for the first time as youngster. I feel this way every time I go to one of these shows. As geeky as this sounds, I love technology. I especially love how technology can enhance our lives, how we shop, how we interact, how we communicate, etc. What was great about my trip to NRF this year, is that the vast majority, if not everyone, whom I came in contact with shared that same passion for technology.

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 overwhelming barrier to the wide acceptance of user-generated content across traditional and emerging media platforms is the sheer size of the market. What could be looked at as its greatest strength (a vast portfolio of user-created videos that cover a diverse range of topics) is undoubtedly its largest weakness. With thousands of new videos being uploaded to YouTube every hour, seperating great content and talent from everything else is a daunting task.

YouTube continues to update its platform to make finding worthwhile videos easier, but significant burden still rests on the viewer. When the site visitor is a media organization looking to identify best of class user-created content to include within its core programming, YouTube stands to greatly benefit in making that process as efficient and painless as possible.

Welcome YouTube Direct, “a new tool that allows media organizations to request, review and rebroadcast YouTube clips directly from YouTube users.” With YouTube Direct a news organization will be able to integrate a video upload tool directly into its site. YouTube Direct will allow these news groups to screen video uploads as they come in, and use the best clips for their broadcasts and on their websites. How valuable could this tool be to media companies looking to expand their coverage, and the breadth of their content?

Immensely Valuable.

Thanks to emerging mobile and digital technologies, a static advertisement doesn’t have to cede to being a one-dimensional branding tool. It can be a call-to-action that takes you on a scavenger hunt around an arena. Using image recognition technology from LinkMe Mobile, you can capture visual answers to sports-related trivia questions as you move throughout a venue. An advertising display can become the starting point for an augmented reality adventure. Stadium attendees can unlock clues, prizes, and special discounts by connecting their phones to mobile-enabled billboards. Whether it be via Bluetooth, augmented reality, QR code, or NFC (near field communication), a billboard doesn’t need to exist within the silo of a singular creative approach.

As CMOs and brand managers search for new, creative ways to engage consumers in sports stadiums, they must make ample use of the resources that lay before them. Instead of focusing solely on building brand awareness, advertising professionals realize widespread benefits by crafting campaigns that focus on activation and ROI. With out-of-home media and digital technology working in concert, brands can create all encompassing fan engagements.

With digital signage and interactive displays playing a larger role in stadium environments, brands have more platforms from which to create unique campaigns. Arena Media Networks offers advertisers a number of creative opportunities that extend beyond generating brand awareness. Thanks to the timeliness and flexibility of digital signage, brands can exhibit greater fluidity in these environments. Messages can be aligned with team performance and specific events that occur during a game. In building creative ads that leverage real-time information, brands can forge more lasting impressions with stadium visitors.

It’s about taking an active role in the stadium environment, building off of the emotion and excitement that flow through sports arenas. While it forces brands to think outside of the silo of brand awareness, it allows them to become part of the complete fan experience. One must not be afraid to seize upon the many interactive opportunities that fans come in contact with. Through the use of guerrilla marketing tactics and digital applications, static advertisements can become much more than single points of contact.

When you think about all of the different advertising initiatives that networks like Arena Media make possible, you can get lost in the creative possibilities. Fans can engage in multi-player fantasy sports games, interact with screens via mobile applications, and communicate with fans across the arena through digital displays. What’s exciting about sports arenas acting as the backdrop for marketing campaigns is how technologically-advanced they are.

With a myriad of technology platforms at their finger tips, it’s hard to imagine why brands wouldn’t leverage every possible opportunity to connect with fans who are already at the peak of excitement. It’s great for brands to get involved in these environments because stadiums encapsulate the shared sense of belonging amongst fans, the passion they hold for their teams, and the all-encompassing entertainment that characterizes the in-arena experience.

Media planners and marketing managers were once able to fulfill their duties by buying boards throughout stadiums and quantifying the number of people that would “see” them. But as digital technology has forced brands to better scrutinize their use of different media properties, so too must sports marketing professionals be liable for the decisions they make. The days of just buying a stadium banner or a couple static displays along an arena concourse are numbered. Brand managers must activate the engagement opportunities that grow out of these environments. Brands can now move seamlessly across stadiums, shifting messages according to team performance.

Thanks to continued innovation in the areas of experiential marketing and fan participation, sponsors can challenge their sports marketing partners to create campaigns that speak to the unique aspects of their brand. I imagine that as Arena Media grows across professional sports stadiums (the company is in over 50 professional sports venues), we’ll see an increasing amount of cross country multi-player rivalries. Thanks to smartphone application development, we’re beginning to see more venue specific mobile offerings. Whether it be direct mobile ordering, customized venue maps, or augmented reality layers, fans can unlock the core elements of the stadium experience from the palm of their hands.

The jobs of brand executives and marketing managers require greater research and creative development beyond the tried and true tactics of old. For those who are reticent to cede their brands to the control of their customers, they will continue to drift into the abyss of zero relevance. To exist in today’s stadiums and thrive therein, brands need to be willing to step from the static billboards of old and participate in the environments themselves. That could be via touchscreen interactivity, mobile activation, or any number of experiential marketing tactics. Instead of being another logo on the wall, companies must seize upon the chance to “interact” with fans.