Digital signage is well-established technology that allows for targeted distribution of rich media assets to digital display endpoints. Its notion of granular “narrowcasting” contrasts with the one-size-fits-all approach of broadcasting. Using the Internet as the data transport platform, digital signage allows for dynamic, dayparted, customized programming and messaging across a network of digital displays. The advantages of digital signage are particularly applicable in a retail environment, where costly static signage beset by compliance challenges has made execution an uneven prospect for many decades.
There have been many success stories involving digital signage at retail, where deployments generally have been divided between ad- and brand- supported networks. An example of an ad-supported network is the Pharmacy Health Network (PHN), owned by Cardinal Health and operated by Respario Digital Advertising Group of Dallas. PHN, currently approaching 1,000 retail locations, provides topical health-related programming in the pharmacy counter area ― a part of the store with predictable dwell time. The health content is mixed with news and weather, pharmacy-related information and advertising for a variety of endemic and non-endemic products and services. The digital programming is augmented by a collateral rack, from which consumers can obtain special offers and additional information. PHN continues to build on its own success, driving business for both the pharmacies and advertisers.
An example of a brand-supported network is the UPS Stores Canada, a franchised operation which has implemented a digital signage program designed to be all about its brand, its services and its messaging. There is no outside advertising. ROI has been provided by a demonstrable sales lift in stores utilizing the signs.
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With both ad- and brand-supported networks as well as hybrids continuing to appear, the core technology to meet retailers’ varied digital signage requirements has advanced. But that has not been enough.
As the tools for managing a narrowcast network have evolved, so too have the niches of specialized function around the basic content management system. About 16 months ago, in a post entitled First Steps To a DOOH Ecosystem, we examined the emergence of an ecosystem that was effectively digital signage-centric. It looked like this:
The post’s closing thought contemplated what would be next:
That ecosystem can expand well beyond the diagram above to include mobile applications, web tools and more. Customers will demand it, and it will happen. Me? I can’t wait.
In line with the notion of an ecosystem, that expansion would be analogous to the concept of Biodiversity within a natural ecosystem. Wikipedia identifies the role of Biodiversity as follows:
A greater degree of species or biological diversity ― commonly referred to as Biodiversity ― of an ecosystem may contribute to greater resilience of an ecosystem, because there are more species present at a location to respond to change and thus “absorb” or reduce its effects.
It seems like enough time has passed, the wait is nearly over and the digital signage ecosystem is in position to become a part of a more “biodiverse” OOH marketing and messaging ecosystem, especially in retail environments. That expanded ecosystem would be customer-centric. This is a good transition, as it drags digital signage into the realm of strategic apps, the goal of all new technologies.
One of the technologies providing a foundation in the OOH marketing ecosystem is mobile. The proliferation of smartphones in the hands of consumers continues and is forecast to reach 40% penetration next year, and apps have been a key driver of that growth. Retail has been a target of some high profile app startups: for example, Shopkick, Red Laser, SCVNGR and others have generated millions of downloads. Perhaps more importantly, retailers have begun developing their own mobile strategies and branded apps. These focus on different capabilities of mobile platforms, from search to location-based services to integration with social media platforms or SMS. The nature of the apps is ideally lined up with preconceived objectives and use cases. Ultimately, however, their integration with existing store systems and other marketing tools such as digital signage will magnify their value. The technical portion of the emerging marketing ecosystem in retail might look something like this:
Here are some of the essential characteristics of the extended ecosystem:
Multiple Points Of Integration
The on-site systems, including digital signage, customer-based mobile apps and POS systems as depicted above, must be integrated with each other to provide maximum benefit. This can occur in a number of ways and will vary by implementation, objective and business rules. Additionally, they must be integrated with external systems including corporate applications (customer management, inventory management, etc.) and media planning applications.
Analytics
Each of the systems referred to above generates data that can be analyzed and used for multiple purposes. Clearly, the data must be captured, organized, stored and accessed in a manner that makes it useful to downstream systems for proof of play, sales impact analysis, content assessment and offer refinement, to name a few. The ability to gain insights through advanced analytics speeds reaction time to trends and allows for near real-time adjustment of offers and content, as well as subsequent measurement of impact.
Cloud Services
Given that the integrated marketing system generates data from applications that may be owned by the venue owner (POS), the network operator (digital signage) and many customers (mobile apps), the analytics database and applications may best be positioned as cloud-based services, whether that cloud is public or private. Using analytics, advertisers will be able to jump on trends by increasing frequency, changing content, or segmenting a buy via a cloud-based ad server. Inside marketers will be able to refine promotions on its the cloud’s? one-to-many platform: digital signage. Similarly, they will be able to customize messaging and offers to individuals through the mobile platform using a cloud-based application fueled by analytics.
Is this getting too far ahead of today’s reality? I don’t think so. We have to recognize that digital signs are one type of endpoint in the OOH world, and that digital signage platforms are point solutions. Our value is best realized by integrating with and supporting other endpoints and applications to advance an overall marketing and communications strategy. The tools are there, the need is growing. The wait is nearly over.
Ken Goldberg, CEO of Real Digital Media, is a thought leader in the digital signage industry and a widely recognized expert in retail technology, operations and customer management. You can find Ken at or follow him via Blog and Twitter @NEOCAST.
