Dixon's in-store TV network works on ad sales

Media Week tells us that, "Dixons Group is opening up its in-store television network in 570 Currys and Dixons stores nationwide to third-party advertisers. Dublin-based Ads in Store, which manages the in-store TV network for the electronics and household appliances retailer, has appointed PH4 as the sales house. The deal comes in the same week as Dixons axed its in-store radio contract with Immedia Broadcasting and coincides with a wider review of all in-store media arrangements. Programming will be shown on all the screens on display in the stores and each 15 to 20-minute loop will include four minutes of separate commercial airtime, to be sold by sales house PH4."

PH4 apparently sells advertising on a number of European digital signage networks, so this shouldn't be too new for them. You can learn about them here.

Digital signage connects churchgoers

BroadcastEngineering is carrying this article about using digital signage to connect multiple branch churches together to share instructional and motivational content, e-learning content and even live sermons from popular or visiting ministers:

First launched at a high school in 2003, Duluth, GA-based Cross Pointe, the Church at Gwinnett Center, needed effective ways to communicate with its fast-growing congregation. With upwards of 1600 people attending its weekly services, Cross Pointe wanted to go beyond projecting video and PowerPoint slides on its large screens as it transformed a warehouse into its first house of worship. After attending a trade show, a church volunteer recommended augmenting the facility’s live video with live in-service graphics and more sophisticated programmed audio and visual content.

Apparently the system is also used as a digital bulletin board, displaying church notices and schedules when not in use showing other types of content. Interesting use of the technology.

Watchit Media, Inc. Reports Financial Results

Impressive gross margins from this narrowcasting network company, as reported in this press release at Business Wire:

For the three months ended September 30, 2005 the Company reported revenues of $379,000, a 49% growth over the same period in 2004. Gross profit for the same periods increased 10% to $154,000 from $140,000.

For the nine months ended September 30, 2005, the Company reported revenues of $1,243,000, a 120% growth over the same period in 2004. Gross profit for the nine month period increased 116% to $673,000. As a percentage of revenue, gross margin remained stable at approximately 55% for both nine month periods ending September 30, 2005 and 2004.

I love the transparency required of publicly-traded companies :)

New Wal-Mart TV research shows strong results

According to both MediaPost and aka.tv, PRN and Wal-Mart have conducted some interesting research into the efficacy of the Wal-Mart TV in-store digital signage network. The research suggests that the screens are good for both the retailer and its suppliers, with ad effectiveness surpassing even broadcast and cable TV advertising with regard to consumer perception. As MediaPost notes in this article:

The research, conducted by the TNS Media and Entertainment Group, surveyed 5,630 people in 20 Wal-Mart locations installed with Wal-Mart TV, and found that commercials on the in-store network generated higher motivation levels than in-home television advertisements for comparable brands.

This aka.tv article has some additional details, as well as a bit on methodology:

For the study, which took place over three waves between 28 March and 15 May 2005, TNS intercepted 5630 customers at the exits of 20 geographically-dispersed stores installed with Wal-Mart TV network's upgraded 'Next Generation' display configurations.

While the study focused on consumer perceptions and not sales lift, this sort of data can't be ignored given the size and scope of the study. But go read the results and judge for yourself :)

ActiveLight opens new East Coast distribution center

According to this press release reproduced by Infocomm:

ActiveLight, Inc., a leading value-added distributor of advanced displays, dynamic signage solutions and projection equipment, announced that it has acquired a new distribution facility in Pittsburgh and is now shipping products from the new location.

The new Pittsburgh facility enables more of ActiveLight's customers to receive their orders within two days at ground rates. ActiveLight's full line of plasma and LCD displays and display accessories will be housed at the new facility.

Apparently, it's less expensive to move big, fragile, heavy things like plasma screens and LCD panels over shorter distances and without having to put them on a plane :)

Lyle talks about the digital signage business continuum

Lyle Bunn of BTV+ has written a nice piece about the digital signage business models in use by many firms today, including a nice business flow diagram illustrating the different marketing and advertising elements that should be taken into account when building a network and keeping it fed with content. As he notes:

Digital signage is not a replacement for other display medium such as TV, billboards, print ads, etc., but an addition option for ad placement.

Different display type can meet the “need state” of a consumer. A consumer NEEDS a particular kind of information or promotion while sitting in a TV room watching the game, or while driving or while reading a newspaper.

The “need state” differs while in a buying location, where multiple types of information and promotion can support brand building and inspire the purchase. “BUY ME”, “TRY ME”, “BETTER THAN” and “GOES WITH” can each be used effectively on Digital Signage.

Digital Signage is a unique display medium because it has the inherent ability to cost-effectively display different message types in day-parts, or triggered by interest or demographic, or even played simultaneously on multiple or split screens.

Overall, quite a good read. You should probably go check it out if you're in the business (or plan to be).

Limelight media announces Q3 results

From this press release:

Limelight Media Group, Inc. (OTC Bulletin Board: LMMG) today announced results for the third quarter ended, Sept 30, 2005. Revenues for the third quarter ended Sept 30, 2005 were $1,422,781 compared to $1,016,966 in the second quarter of 2005, an increase of 39.9% quarter over quarter.

Net income in the quarter was a net loss of ($821,467) compared to a net gain of $22,461 in the second quarter of 2005. The net operational losses were attributable to significant expense increases in three areas.

• Professional expenses due to legal and accounting costs associated with the acquisition of IMPART, increased from $27,341 to $313,883, and were recorded as a one-time expense
• An increase of $371,332 in cost of revenues and increased non-cash depreciation expenses of $96,333 related to continued operational investments including hardware and system purchases to support its expansion into new market segments such as the SeaTac Airport deployment previously announced
• A key investment in the personnel needed to fulfill the company's enhanced vision and business model included direct expense increases of $77,250 quarter over quarter.

ClearChannel to try out mall digital signage

According to aka.tv, media giant ClearChannel is further experimenting with digital signage, this time trying out the advertising technology in a number of US malls, starting with about 10 each in New York and Los Angeles. They note that:

Content on the network will run on a 15-minute loop with 30-second commercial spots - a format that Clear Channel says will make it convenient for advertisers to run standard made-for-TV ads. Early advertising applications will include promotional campaigns and programming tied to a specific day, week, month or season, with ad content coming from non-traditional media as well as television and other video campaigns. While Clear Channel recognizes the network as “especially attractive to retailers”, the first signed advertiser is Ray Catena Infiniti, a local car dealer in New Jersey.

Clear Channel says that the ads create a cost-effective way for advertisers to reach consumers in a captive, entertainment environment at the point of purchase.

While I'll certainly agree about the effectiveness of in-mall digital signage (and in fact, Arbitron's past research on this very subject backs us up even more), I'm not convinced that simply re-displaying TV ads on in-mall digital screens is going to have significant impact.

In its announcement of the new network, Clear Channel quoted figures from Starch Research Services that show shopping mall food courts provides the longest exposure to a selling message – 32 minutes – versus other shopping mall locales.
It also quotes ICSC research as showing that:

• 45 percent of all people who visit the mall make a food-court purchase, resulting in average sale-per-square-foot of over 3 times higher than all other stores.
• More than 50 percent of all shoppers felt they were staying longer because they could break to eat or drink something at the food court.

Advertisers on the new network will be able to change content remotely, and place advertising by mall, region and day-part, according to Clear Channel. “It will be sliced and diced just like television,” said Baker, who described mall advertising as moving from the realm of non-traditional media into the mainstream.

Again, the "like television" part concerns me a little bit. Increasing amounts of research show that in-store advertising is not really at all like television. I guess it might be different in a mall concourse or food court setting, where consumers aren't actively shopping, and thus might be more receptive to the passive medium.

Color e-paper to drive next generation digital advertising displays

According to this article in Austrailan IT, color electronic paper from Fujitsu should be on the market in 18 months, and available in prototype batches even earlier than that:

The price would eventually fall so it could replace "practically any form of signage or paper-based documents, even potentially shelf labels", he said.

The new centre displays emerging digital media systems, from digital kiosks and dynamic point-of-sale displays to transport information systems and corporate communications systems.

[Fujitsu Australia and New Zealand chief executive Rod Vawdrey] said digital media technology would change the way organisations targeted, and communicated with, customers.

"Fujitsu's digital media systems enable companies to connect with customers at the point of sale to offer targeted promotions and information that can influence their buying decision," he said.

"Content can be tailored for each location and presented via a range of intelligent display devices, including interactive kiosks, television screens, dynamic signage, mobile phones and even radio frequency identification trolleys being developed for our leading supermarkets."

So, the arguments are the same as for any other form of digital advertising, like interactive kiosks and digital signage... only the physical medium is different (and potentially much cheaper).

In-Store TV boost potato chip sales

According to this article in the Retail Bulletin, "Pepsico successfully target[ed] UK housewives through a Tesco TV campaign promoting Walkers Potato Heads 6 packs." Subsequent sales results indicated that the in-store TV campaign produced a 4% sales uplift for the products during the campaign, above and beyond any price promotions that may have also been in effect.

Scala partner event draws record crowd

According to a recent press release, Scala's annual partner event drew 130 delegates from 25 countries across Europe, the Middle East and Africa. At the event, Scala announced its product roadmap for the coming year, showcased several prominent digital signage networks using their technology, and presented awards to several partners who deployed the most/best/newest networks:

The first day was dedicated to Scala’s Partners presenting their success stories to their peers in the Digital Signage industry. Included in the presentations were: Wim van den Dungen of Rabobank in the Netherlands; Markus Dierkes of IBM Germany; Matias Brianso of CEC/CNC in Spain; Ahmed El Ridi of SSS in Dubai, UAE; Barry Thurston and Peter Critchley from MIT, a division of the Beaver Group in the UK; Rafal Bremer of T-Systems in Poland; Stephan Otterbach and Markus Wetzlar of IC Lab in Germany; and Martin Kingdon of POPAI in the UK. Scala Partners presented stories of innovative digital signage installations throughout the hemisphere.

To support the event a number of Scala technology partners exhibited their related technologies for the Digital Signage industry including: Opticality (X3D), NEC Display Solutions, MultiQ, M-cube, ViewPIA, Bizet from Lavitsky Computer Laboratories Inc., and Matrox.

To round off the event a gala dinner was highlighted by the presentation of awards in three categories:

E Most Scala Players Deployed – T-Systems Poland
E Best Performing Newcomer – Centro Novo das Comunicacions (CNC) Spain
E Most New Customers -- Specialized Software Services (SSS) Dubai, UAE

The full press release can be found here, though there isn't much more information in it :)

Broadsign and DS-IQ partner for digital signage accountability

Hot off the PR Newswire comes this notice that Broadsign, a digital signage software platform maker, and DS-IQ a digital signage analytics firm,

"today announced the integration of BroadSign's Digital Media Logistics Suite (DMLS) and DS-IQ's web-based service that directly measures consumer purchases triggered by advertising run on in-store digital networks. Together the two products offer retailers and advertisers an unprecedented capability for measuring and increasing sales uplift and advertising ROI produced by retail networks.

Together, DS-IQ and BroadSign create a real-time feedback loop that goes beyond simply documenting sales uplift, to allow ongoing network optimization. Advertisers will quickly learn which creatives perform best in various markets and day-parts, and what schedules are most effective. Equipped with retail intelligence from DS-IQ and BroadSign, they will be able to successfully launch new products and micro-target campaigns across thousands of stores and millions of customers.

You can read the complete release here.

Rip Curl advertising on digital signage in Times Square

Broadcast Engineering tells us that, "[s]urfing company Rip Curl is showcasing its new brand campaign for 2006 on a digital video billboard in New York City's Time Square and is using interactive, text messaging-based quick-tag (qtag) technology to track consumer response to its promotion."

They think that a younger audience will be receptive to the text messaging sent out by the billboards, whereas older consumers might perceive it as intrusive spam (not sure how I feel about it yet).

The full text of the article can be found here.

Harrods to deploy in-store TV

aka is reporting that high-end department store Harrods is deploying an in-store TV network that will ultimately consist of 100 screens placed in keys areas (apparently there are 100 key areas in Harrods).

It's only news because Harrods is involved, but should you want to read the article, it can be found here.

SignStorey partners with Meredith Corporation for digital signage network content

More content news from aka.tv:

Meredith Corporation, one of the largest publishers of women’s magazines in the United States, has entered the digital-signage sector through a content partnership with SignStorey, operator of a retail media network at more than 1200 supermarket stores nationwide.

Meredith will provide SignStorey with video, photography and editorial content from its range of more than 25 top-selling magazines, which include titles such as Better Homes and Gardens, More, Ladies’ Home Journal, and Family Circle.

Great idea, and again, a good complement since those magazines are sold at the checkout counter where SignStorey places its electronic digital signs. The network gains thematically relevant content to supplement its advertising and informational display, and the magazines gain additional exposure. Read the full article here.