That's right! My little sister Jeralyn, who works for Daily Candy (an online magazine focused on trends and events for the tragically hip), was recently asked to do a segment that appeared on ABC's Eyewitness News (presumably during the "lighter side") last week. Thanks to ABC's media sharing arrangements, Jer's face will grace the small screens in New York City cabs via TAXI-TV for the next month or so. Here's the clip (and here's the link, in case the embedded player doesn't show up for you).
Tuesday, January 06, 2009
The morning press - digital signage news for January 5
Here are some of the more interesting industry new items from the past few days:
Focus Media loses Sports Media unit to competitor - Bejing-based flat-screen advertiser Good Media took over its fitness-center advertising competitor Sports Media, formerly owned by Focus Media. Ding Bingwen, former Sports Media president and new Good Media chief operating officer and board member, said Focus and Sports Media split over lack of profit guarantees. Considering that the digital signage units in Focus's portfolio are the more sound (and profitable) of its operations, it's unusual to see the firm shedding them right now -- especially when there's a deal in the works between Focus and SinaVision to merge the two companies' digital out-of-home advertising units.
Staples to revamp in-store marketing - News America Marketing, who are most commonly known for their line of shelf talker advertising products for supermarkets and drug stores will apparently be assisting office supplier Staples with some changes to their in-store advertising lineup this year. Hey, the approach is effective and cheaper than TV advertising (though they've gotten plenty of mileage out of their "Easy Button" campaign), so why not?
The Economist's guide to ad sales in 2009 - Advertisers and marketers are in for some hard times to be sure, but The Economist has stepped in and put together a short presentation on precisely why it's a bad idea to automatically cut back on marketing when budgets get tightened. The one-line summary: brands drive sales, and marketing drives brands. It's 57 slides, but you can read it in 5 minutes. I highly suggest you do (here's the link for folks who don't see the embedded slideshow).
Tags: digital signage, digital signage news
Looking for more digital signage info? Check out WireSpring's Kiosk and Digital Signage blog for in-depth industry analysis and even more news about the digital signage industry. While you're there, feel free to read up on our digital signage software and services
Focus Media loses Sports Media unit to competitor - Bejing-based flat-screen advertiser Good Media took over its fitness-center advertising competitor Sports Media, formerly owned by Focus Media. Ding Bingwen, former Sports Media president and new Good Media chief operating officer and board member, said Focus and Sports Media split over lack of profit guarantees. Considering that the digital signage units in Focus's portfolio are the more sound (and profitable) of its operations, it's unusual to see the firm shedding them right now -- especially when there's a deal in the works between Focus and SinaVision to merge the two companies' digital out-of-home advertising units.
Staples to revamp in-store marketing - News America Marketing, who are most commonly known for their line of shelf talker advertising products for supermarkets and drug stores will apparently be assisting office supplier Staples with some changes to their in-store advertising lineup this year. Hey, the approach is effective and cheaper than TV advertising (though they've gotten plenty of mileage out of their "Easy Button" campaign), so why not?
The Economist's guide to ad sales in 2009 - Advertisers and marketers are in for some hard times to be sure, but The Economist has stepped in and put together a short presentation on precisely why it's a bad idea to automatically cut back on marketing when budgets get tightened. The one-line summary: brands drive sales, and marketing drives brands. It's 57 slides, but you can read it in 5 minutes. I highly suggest you do (here's the link for folks who don't see the embedded slideshow).
Tags: digital signage, digital signage news
Looking for more digital signage info? Check out WireSpring's Kiosk and Digital Signage blog for in-depth industry analysis and even more news about the digital signage industry. While you're there, feel free to read up on our digital signage software and services
Monday, January 05, 2009
2008 Times Square wrap-up
Since much attention is focused on Times Square around the holidays, it's not unusual to see articles in the paper focusing on its history, heritage, or current status as a New York City icon. However, seeing more articles about the kinds of ads featured there is still a little unusual. Sure it's one of the few places in the world where people actually go to see the ads (versus avoid them), and sure lots of big brands will try out their daring, new campaign ideas there. But thanks to increased interest in both the digital advertising sector and the out-of-home sector, 2008 turned out to be a banner year (no pun intended, I swear) for Times Square.
Wired Magazine's Meghan Keane did a nice wrap-up story about the new tech powering the square, including the ability for advertisers to change ads on a minute-by-minute basis, and interact with viewers via their mobile devices. There's a lot of detail about the Square's current capabilities as well as the upgrades it got in 2008, so is worth a quick read by anybody interested in digital out-of-home advertising.
MediaPost also did a neat article last week about Pepsi's latest Times Square extravaganza that's worth clicking on if only to look at the cool image. For the big New Year's Eve bash the firm combined digital signage, event marketing, billboards, pop-up stores, mobile media and probably a bunch of other niche plays to "carbonate" Times Square (by dropping thousands of baloons onto revelers), and then let them use a Pepsi sound stage and their mobile cameras to talk about their experience being carbonated. It's clearly not the kind of thing that the brand could do every day, but it has generated a lot of buzz for them already, and probably some considerable goodwill (well, for anybody who was there and can actually still remember anything).
More big things are being planned for 2009. We'll see a few more screens get upgraded to 720p resolution (and maybe somebody will decide to go all the way to 1080p, though that's twice the number of pixels). Campaigns featuring mobile interactivity will increase dramatically. And there will probably be more good-hearted gimmicks, like Coke's transition to wind power for their billboards (a consortium of 30 digital billboard operators have switched, which will, "prevent the release of 1,866 metric tons of carbon dioxide each year. To put that in human terms, the wind-powering of Coca-Cola's billboard alone will have the equivalent effect of removing 75 passenger automobiles from the road for one year or converting 38 households to wind power for one year. The "greening" of the Coca-Cola billboard is also equivalent to reducing 376 metric tons of carbon dioxide emissions annually or planting 471.5 acres of trees."
All in all, 2009 looks to be another good year for Times Square.
Tags: out-of-home advertising, ooh, digital signage, times square
Wired Magazine's Meghan Keane did a nice wrap-up story about the new tech powering the square, including the ability for advertisers to change ads on a minute-by-minute basis, and interact with viewers via their mobile devices. There's a lot of detail about the Square's current capabilities as well as the upgrades it got in 2008, so is worth a quick read by anybody interested in digital out-of-home advertising.
MediaPost also did a neat article last week about Pepsi's latest Times Square extravaganza that's worth clicking on if only to look at the cool image. For the big New Year's Eve bash the firm combined digital signage, event marketing, billboards, pop-up stores, mobile media and probably a bunch of other niche plays to "carbonate" Times Square (by dropping thousands of baloons onto revelers), and then let them use a Pepsi sound stage and their mobile cameras to talk about their experience being carbonated. It's clearly not the kind of thing that the brand could do every day, but it has generated a lot of buzz for them already, and probably some considerable goodwill (well, for anybody who was there and can actually still remember anything).
More big things are being planned for 2009. We'll see a few more screens get upgraded to 720p resolution (and maybe somebody will decide to go all the way to 1080p, though that's twice the number of pixels). Campaigns featuring mobile interactivity will increase dramatically. And there will probably be more good-hearted gimmicks, like Coke's transition to wind power for their billboards (a consortium of 30 digital billboard operators have switched, which will, "prevent the release of 1,866 metric tons of carbon dioxide each year. To put that in human terms, the wind-powering of Coca-Cola's billboard alone will have the equivalent effect of removing 75 passenger automobiles from the road for one year or converting 38 households to wind power for one year. The "greening" of the Coca-Cola billboard is also equivalent to reducing 376 metric tons of carbon dioxide emissions annually or planting 471.5 acres of trees."
All in all, 2009 looks to be another good year for Times Square.
Tags: out-of-home advertising, ooh, digital signage, times square
Friday, January 02, 2009
Walmart decides not to continue with PRISM media measurement
From the "surprise, surprise" department...
Walmart has concluded that, while Nielsen's initial run of PRISM measurements were useful enough to generate some customer insights, they won't be continuing with the program in 2009. As AdAge reports:
In addition to being compliant with Walmart's own regulations about sharing data with syndicators like Nielsen, continuing with PRISM probably would have meant duplicating some work between that effort and their own in-store measurement practices, which are slated to use DS-IQ as part of their new Walmart Smart network of digital signs.
At this point, I wonder whether Walmart never really intended to go forward with PRISM, but was merely using that program as a way to verify that their own DS-IQ data was accurate. I bet Nielsen made them a good deal in order to get them on board in the first place, so for Walmart it would have been a relatively low-cost way of getting a top-notch research firm to qualify their competing offering.
Pretty sneaky, eh?
Tags: digital signage, walmart, media measurement
Walmart has concluded that, while Nielsen's initial run of PRISM measurements were useful enough to generate some customer insights, they won't be continuing with the program in 2009. As AdAge reports:
"Walmart was pleased with the insights they gleaned" from the PRISM pilot but decided not to participate in the national syndicated service "consistent with their internal data-sharing policies." To participate in the pilot, Walmart last year partially lifted a ban that had been in place since 2001 on sharing sales data with syndicators such as Nielsen and Information Resources Inc.Other major backers of the research effort, including Target, Kroger, P&G, Unilever and Kraft, are still planning to push the service in the coming year, but Walmart accounts for a large portion of overall shopping dollars, so having them out of the research pool isn't going to be good news for anybody hoping to purchase Nielsen PRISM data to get a better idea for what's going on inside of the retail giant.
In addition to being compliant with Walmart's own regulations about sharing data with syndicators like Nielsen, continuing with PRISM probably would have meant duplicating some work between that effort and their own in-store measurement practices, which are slated to use DS-IQ as part of their new Walmart Smart network of digital signs.
At this point, I wonder whether Walmart never really intended to go forward with PRISM, but was merely using that program as a way to verify that their own DS-IQ data was accurate. I bet Nielsen made them a good deal in order to get them on board in the first place, so for Walmart it would have been a relatively low-cost way of getting a top-notch research firm to qualify their competing offering.
Pretty sneaky, eh?
Tags: digital signage, walmart, media measurement
Thursday, January 01, 2009
One more list of articles to read through before work starts again
Happy New Year, everyone! I know, I know, it's a total cop-out to do two compilation posts in a row. We'll be back in action full-force next week, but if you feel the need to pass the time doing some light industry-related reading, you could do worse than to peruse:
Japanese billboards are watching back - Minority Report reference aside, it's interesting to see the difference in reactions between Japanese and American consumers when talking about outdoor billboards that use image recognition systems to monitor viewers.
Sina Gets Bargain in Focus Media Deal - It seems like just a few months ago that I was lamenting Focus Media's fall to about $35/share. But considering that on Friday they closed at around $9.09/share, it does look like Sina might be getting quite a deal (provided that Focus doesn't do anything else to tick off the Chinese government again). The nature of the deal is pretty interesting, so this WSJ article is well worth the read for business and finance junkies.
Adweek taps Walmart Smart Network as top marketing innovation - A few tweaks here, a change there, a couple zillion bucks in new hardware, and suddenly Walmart's tired old in-store TV network is the hottest thing going, if you believe Adweek.
Dave Haynes does the OVAB shuffle - Did you find the OVAB guidelines a little hard to figure out? Haynes does a good job of breaking them down into a form anybody should be able to understand.
With that, I'll leave you to enjoy the last few days of holiday downtime (if you were lucky enough to take off till the end of this week, at least).
Tags: digital signage
Japanese billboards are watching back - Minority Report reference aside, it's interesting to see the difference in reactions between Japanese and American consumers when talking about outdoor billboards that use image recognition systems to monitor viewers.
Sina Gets Bargain in Focus Media Deal - It seems like just a few months ago that I was lamenting Focus Media's fall to about $35/share. But considering that on Friday they closed at around $9.09/share, it does look like Sina might be getting quite a deal (provided that Focus doesn't do anything else to tick off the Chinese government again). The nature of the deal is pretty interesting, so this WSJ article is well worth the read for business and finance junkies.
Adweek taps Walmart Smart Network as top marketing innovation - A few tweaks here, a change there, a couple zillion bucks in new hardware, and suddenly Walmart's tired old in-store TV network is the hottest thing going, if you believe Adweek.
Dave Haynes does the OVAB shuffle - Did you find the OVAB guidelines a little hard to figure out? Haynes does a good job of breaking them down into a form anybody should be able to understand.
With that, I'll leave you to enjoy the last few days of holiday downtime (if you were lucky enough to take off till the end of this week, at least).
Tags: digital signage
Happy (Digitally Enhanced) New Year
Despite the nasty economic climate, digital signage always has a big place in the celebratory moments surrounding the new year – from Times Square to the Super Bowl, American pop culture still has a keen eye for the big visual – and interactive – displays that help us pronounce ourselves to the world at our most exuberant. Certainly New Year’s Eve in New York City is all about big digital signs lighting the way to 2009. According to Wired, Times Square -- with 42 digital billboards, many of them with new HD features -- is the place where the future of digital signage begins. “This year, the space has made big strides from its life as a three dimensional advertising surface to an outdoor, interactive entertainment center.”
The first piece of news to heighten the excitement is high definition: Closest to people on the street and impressive with its giant red lettering, the new JVC billboard, which measures 19 feet by 34 feet, is being promoted by the company as the first 720-line progressive big screen in Times Square, with a widescreen 16:9 aspect ratio. According to Broadcasting Cable news, Walgreens has also contributed to the high-definition video landscape at One Times Square, featuring advertising from Walgreen’s and its suppliers.
The second piece of big news is interactivity: On New Year’s Eve, JVC took its technology one step further by making it possible for anyone to take a photo with their cellphone, send it to nyc@jvcnewyear.com and, moments later (after it was approved), the picture would show up on the billboard. Later, people could retrieve a copy of their photo as it appeared on the billboard. JVC is hoping that these mementos of First Night 2009 (with the JVC logo prominently displayed) will turn into screensavers, desktop photos, wallpaper, and shared items that spread goodwill and brand information across the country.
That wasn’t the only digital distraction to be had if you braved the cold to watch the ball drop: MTV sponsored a similar (but less sophisticated) campaign to allow people to have their text messages appear on MTV’s own high definition screen. Rather than standing around waiting for the big moment, groups could play Scene It? and other games on Spec’s big street-level screens.
The third piece of fun -- and yes, it's being promoted as fun -- is green technology: Ricoh and Coca Cola both boasted of their new green presence in Time’s Square– not only are they part of a group of 30 wind-powered billboards in a three building span, but Coke’s ad campaign focuses on what they’re doing in general that’s environmentally friendly. Coke has taken its message out into the streets as well as on its signs, with booths and direct market promotions to help shape its new 2009 image as a ecologically progressive product. We'll have to check back later in the year and see how economically-battered consumers react to the re-branding of such pop culture "junk" consumables as Coke and McDonald's. At least the digital signage industry may benefit from the "greening" of its most visible locations.
As wonderful as it is to see the latest technology fused with messages about conservation, I’m curious how many people actually went over to Duracell's Power Lodge and got on stationary bikes that helped pedal juice to the "2009" sign.
Friday, December 19, 2008
A nice, big list of articles to keep you busy over the holidays
Man, it's been a much busier pre-holiday season here at WireSpring than I had expected. Sorry for the infrequent posts. But I had the best of intentions, honest! To prove it, here are the articles that I've been meaning to write about (or at least comment on) for about the past week and a half or so. All are worth a read if you haven't seen them yet:
ZunaVision Elegantly Inserts Ads Anywhere - Ads in the virtual world are about to become as prevalent as those in the real world, if this little start-up company has anything to say about it (with crazy video demo).
Multiscreen Mad Men - The NYT interviews a couple of Madison Ave execs on the subject of multi-channel advertising, since a lot of us, "now swim through most of their day looking at some kind of screen — screens on their cellphones, on their desks, in their kitchens, everything from digital billboards on the highway and in the back of a cab to the eruption of screens in urban centers."
Outdoor industry urged to promote digital sites - At a conference in London, a debate breaks out over whether the primary goal of the digital billboard set should be to prove the increased value of digital screens (versus static), or prove their overall value to the viewer.
You’re Leaving a Digital Trail. What About Privacy? - Consumer privacy is going to be a hotbutton issue -- maybe the hotbutton issue -- of 2009, and the NYT spends a little time telling you why.
Hologram of French goalkeeper by Adidas - Adverblog has a great video of an outstanding 3D effect produced for Adidas:
'Recession-Proof' P&G Aims to Renegotiate Media Spending Globally - P&G tries to find the silver lining during these tough times by tackling issues and trying out experiments that might not fly during fatter times.
Shoppers Are Not on a Need-to-Know Basis - "Trendwatching.com just released, “Half a Dozen Consumer Trends for 2009.” Number 3 on the list is “Feedback 3.0″ which is all about companies getting fully involved in and even initiating online conversations in an effort to better manage their brands. The idea of Feedback 3.0 is that transparency is going to another level. Companies can’t hide anything, so if they can’t beat ‘em, they’ll have to join ‘em."
Jameson Whiskey Texts Targets On N.Y. Streets - It's not quite digital, not quite static. What it is, is a clever and unique way to add immediate relevance through out-of-home advertising.
Store Brands Lift Grocers in Troubled Times - We've talked about the boost to private label brands a lot over at In-Store and Retail Media News. This article is the latest in a long line of 'em.
Pointer Media Network's in-store service uses purchasing patterns to customize promotions - Catalina Marketing's new service is interesting, but will need to focus exclusively on purchasing behavior to avoid stepping on existing FTC price discrimination laws.
Diet Coke Makes Reuters/Times Square History - "The half-hour TV-like music and fashion variety show was the first to be shot in the Thomson Reuters studio and simulcast live in its entirety onto that company's huge video screens as well as onto the web." (video link, since we can't embed 3 Minute Ad Age)
Retail Window Displays Matter - C.B. Whittemore answers some questions about how, when and why store window displays work.
Malls Cause Frustration, Boredom for 80% of Shoppers - A Wharton School study figured out what many men seem to know inherently (though if traffic at the mall near me is any indication, they may be sucking it up to get a little Christmas shopping done right now).
The power of smart copywriting - Such a great, short read. Especially in the context of our best practices for copy writing for digital signage.
Out-of-Home Ad Industry Girds for Dramatic Transition - That's according to Joe Philport, CEO of the industry's Traffic Audit Bureau. In February, the TAB rolls out a revolutionary new currency and value system for the buying and selling of out-of-home ad space.
So, sorry about the long list and lack of commentary. But if you're feeling drawn to the computer during some time off next week, or you have a long flight and nothing to read, you could do worse than to check out a couple of the items above.
Meanwhile, I'll try to get my act back in gear over here, and start posting more regularly and frequently about all of the interesting industry happenings.
ZunaVision Elegantly Inserts Ads Anywhere - Ads in the virtual world are about to become as prevalent as those in the real world, if this little start-up company has anything to say about it (with crazy video demo).
Multiscreen Mad Men - The NYT interviews a couple of Madison Ave execs on the subject of multi-channel advertising, since a lot of us, "now swim through most of their day looking at some kind of screen — screens on their cellphones, on their desks, in their kitchens, everything from digital billboards on the highway and in the back of a cab to the eruption of screens in urban centers."
Outdoor industry urged to promote digital sites - At a conference in London, a debate breaks out over whether the primary goal of the digital billboard set should be to prove the increased value of digital screens (versus static), or prove their overall value to the viewer.
You’re Leaving a Digital Trail. What About Privacy? - Consumer privacy is going to be a hotbutton issue -- maybe the hotbutton issue -- of 2009, and the NYT spends a little time telling you why.
Hologram of French goalkeeper by Adidas - Adverblog has a great video of an outstanding 3D effect produced for Adidas:
'Recession-Proof' P&G Aims to Renegotiate Media Spending Globally - P&G tries to find the silver lining during these tough times by tackling issues and trying out experiments that might not fly during fatter times.
Shoppers Are Not on a Need-to-Know Basis - "Trendwatching.com just released, “Half a Dozen Consumer Trends for 2009.” Number 3 on the list is “Feedback 3.0″ which is all about companies getting fully involved in and even initiating online conversations in an effort to better manage their brands. The idea of Feedback 3.0 is that transparency is going to another level. Companies can’t hide anything, so if they can’t beat ‘em, they’ll have to join ‘em."
Jameson Whiskey Texts Targets On N.Y. Streets - It's not quite digital, not quite static. What it is, is a clever and unique way to add immediate relevance through out-of-home advertising.
Store Brands Lift Grocers in Troubled Times - We've talked about the boost to private label brands a lot over at In-Store and Retail Media News. This article is the latest in a long line of 'em.
Pointer Media Network's in-store service uses purchasing patterns to customize promotions - Catalina Marketing's new service is interesting, but will need to focus exclusively on purchasing behavior to avoid stepping on existing FTC price discrimination laws.
Diet Coke Makes Reuters/Times Square History - "The half-hour TV-like music and fashion variety show was the first to be shot in the Thomson Reuters studio and simulcast live in its entirety onto that company's huge video screens as well as onto the web." (video link, since we can't embed 3 Minute Ad Age)
Retail Window Displays Matter - C.B. Whittemore answers some questions about how, when and why store window displays work.
Malls Cause Frustration, Boredom for 80% of Shoppers - A Wharton School study figured out what many men seem to know inherently (though if traffic at the mall near me is any indication, they may be sucking it up to get a little Christmas shopping done right now).
The power of smart copywriting - Such a great, short read. Especially in the context of our best practices for copy writing for digital signage.
Out-of-Home Ad Industry Girds for Dramatic Transition - That's according to Joe Philport, CEO of the industry's Traffic Audit Bureau. In February, the TAB rolls out a revolutionary new currency and value system for the buying and selling of out-of-home ad space.
So, sorry about the long list and lack of commentary. But if you're feeling drawn to the computer during some time off next week, or you have a long flight and nothing to read, you could do worse than to check out a couple of the items above.
Meanwhile, I'll try to get my act back in gear over here, and start posting more regularly and frequently about all of the interesting industry happenings.
Thursday, December 18, 2008
RNIN slashes staff, appoints new CEO, sees shares jump darned near 100%
Granted, when a move of less than $0.50 means your shares have doubled you're still in pretty bad shape, but this at least resets the NASDAQ de-listing clock that had been ticking for RNIN for well over a month now. Well, it would have been ticking had the NASD not temporarily suspended that rule in light of the fact that a lot companies are trading at historical lows right now.
The firm first reported that they were reducing their head count by 24%, which would leave them with around 90 if my math skills serve me correctly. That's still about 60-70 more than they ought to have given their current revenue levels and publicly-touted prospects by my book, but it's a move in the right direction to be sure.
Then today they announced that James C. (Jim) Granger would be signing on as CEO. He apparently has some skill working with troubled companies, as he's cited as being "responsible for restoring company growth and increasing bottom line profitability [of Toptech Systems, Inc., a provider of software, hardware and data services]" at his last job.
Wireless Ronin can rebound -- they have plenty of cash left in the bank, and haven't been squeamish about cutting staff. But as I've noted before, they have lot more to do before they can get anywhere near cashflow neutral or (gasp) profitability.
Tags: digital signage, RNIN
The firm first reported that they were reducing their head count by 24%, which would leave them with around 90 if my math skills serve me correctly. That's still about 60-70 more than they ought to have given their current revenue levels and publicly-touted prospects by my book, but it's a move in the right direction to be sure.
Then today they announced that James C. (Jim) Granger would be signing on as CEO. He apparently has some skill working with troubled companies, as he's cited as being "responsible for restoring company growth and increasing bottom line profitability [of Toptech Systems, Inc., a provider of software, hardware and data services]" at his last job.
Wireless Ronin can rebound -- they have plenty of cash left in the bank, and haven't been squeamish about cutting staff. But as I've noted before, they have lot more to do before they can get anywhere near cashflow neutral or (gasp) profitability.
Tags: digital signage, RNIN
Monday, December 01, 2008
Clever multi-channel ad deals bring Rachel Ray to the supermarket aisle...
... for better of worse, depending on your opinion of the hyper-perky TV personality. But the deal between CBS Outernet and the "Everyday with Rachel Ray" (described by Mediaweek) is pretty innovative:
Tags: digital signage, advertising, cbs outernet
Tapping the growing segment of out-of-home media, the perky TV personality’s cooking magazine, Everyday with Rachael Ray, is giving airtime on flat-screen TVs in supermarkets to print advertisers like Tylenol and Eggo who make a minimum page commitment.Magazines have been hit hard by the past year's down economy, with more closing than ever before (which of course didn't stop more from starting up than ever before, but hey, that's entrepreneurship for you, right?). But Everyday is a major publication with substantial backing, so watching them step up and try to reach their subscribers and new potentials right at the point-of-decision
...
While the clients get what Rachael Ray vp, publisher Anne Balaban called the magazine’s “ruboff” effect, the deals are helping drive pages to the magazine; each sponsor had to commit to three to four pages in-book. That’s no small potatoes at a time when page growth has flattened like a bad soufflé for the once-hot Reader’s Digest Assn. title. After launching three years ago with a rate base of 350,000, the food/lifestyle title soared to a circ topping 1.7 million and notched a 58.3 percent rise in ad pages in 2007. But for ’08, ad page growth has slowed to 3.2 percent, with 741 total pages, per the Mediaweek Monitor. “We’re feeling the pinch like everybody else,” Balaban said.
Tags: digital signage, advertising, cbs outernet
Sunday, November 23, 2008
In-store Displays Are More Effective Than Price Cuts, Says OgilvyAction
As reported in Advertising Age this morning, research by shopper marketing agency OgilvyAction indicates even price cutting isn't as effective a sales tool as in-store displays (the low-tech kind, specifically, though presumably the results would apply to digital signs too). The trend is most true for impulse purchase items:
Ogilvy hopes that the data will be used to encourage retailers and brands to use more merchandising instead of automatically launching price reductions at the first sign of sales trouble. However, the firm also noted that price cuts can have hidden benefits, as during recessions consumers tend to shop just as frequently as before, but trade down to less expensive brands (which price reductions could help stop, of course).
Tags: shopper marketing, advertising, shopping
Research OgilvyAction conducted with more than 6,000 shoppers across multiple channels in the U.S. in February and March indicates far more impulse purchases are driven by tactics like those low-tech cardboard displays found at the end of aisles rather than temporary price reductions.Interestingly, the report also adds some new fuel to the fire with regard to the percentage of purchase decisions affected in-store. While POPAI had touted a number near 70% based on their own research from 1995, more recent research suggested the number is more like 40%, and this report found that 31% of shoppers picked a brand in-store based on the influence of some kind of display.
And while that survey came before the economy turned much worse in September, research in the past month by the agency for a snack-food brand at convenience stores had similar findings -- in fact, display drove nearly twice the number of impulse purchases as price reductions.
Specifically, OgilvyAction's research from the spring indicates that 29% of U.S. shoppers impulsively buy from categories they didn't plan to when they entered the store. Of that group, 24% said they were influenced by secondary displays (away from the product's usual aisle), 18% by in-store demonstrations, and only 17% by price promotion.
Ogilvy hopes that the data will be used to encourage retailers and brands to use more merchandising instead of automatically launching price reductions at the first sign of sales trouble. However, the firm also noted that price cuts can have hidden benefits, as during recessions consumers tend to shop just as frequently as before, but trade down to less expensive brands (which price reductions could help stop, of course).
Tags: shopper marketing, advertising, shopping
Tuesday, November 18, 2008
Danoo and Arbitron find in-store TVs can get you to watch in-home TVs
It still strikes me as funny (or maybe ironic) that TV networks are using in-store digital signage networks to entice viewers of the latter to watch more of the former, but I realize there's a legitimate business model behind that decision.
And just how legitimate is it, you might ask? Well Danoo, one of the larger "hyperlocal" networks in the US today, would tell you the following, if today's press release is anything to go on:
Today, though, all the viewer really has to remember is the name of the show being advertised. Then, with a quick trip to the web he or she could pull up the network's website and start streaming the episode (for most major network shows, anyway). That removes a lot of detail from the recall process -- there's just one thing to recall instead of three -- and it also removes the timeliness since viewers can stream network TV over the Internet at any time of day and any day of the week.
Tags: digital signage, advertising, danoo
And just how legitimate is it, you might ask? Well Danoo, one of the larger "hyperlocal" networks in the US today, would tell you the following, if today's press release is anything to go on:
I don't really know anything about advertising network TV shows, but I'd have to imagine that now's a better time to do it than any time in the past two decades. One of the big benefits of digital out-of-home advertising is that you can include a call to action and encourage viewers to complete a specific act. For advertising-funded networks this might typically be in the form of a "buy now" type message, since the advertisements are usually for products sold in store. However, TV networks have always had a bigger challenge: they need to communicate the benefits of the program being advertised, encourage the viewer to watch the program, and then hope that the viewer makes it out of the store, all the way back home, and then remembers to turn on the right channel at the right time.The Arbitron research focused on audience reaction to on-screen ad campaigns, including one for the Sony Pictures feature film “Nick and Norah’s Infinite Playlist.” Most significantly, the study determined that viewers’ intent to see the movie more than doubled, from 19 to 45 percent. Results also indicated that one in four viewers recalled the ad, and all people responding to the survey were six times more likely to name “Nick and Norah” as a newly-released movie.
In two Danoo research studies tracking recent campaigns for the Fox Networks television shows “Fringe” and “House,” the company found similar levels of audience engagement. Advertisements on Danoo’s network drove a 50 percent increase in aided awareness for the new show “Fringe,” and intent to view nearly tripled (from 7 percent to 19 percent) among people watching the screen. Even with an already-popular show like “House,” Danoo’s advertisements drove a 25 percent increase in intent to watch among their audiences.
Today, though, all the viewer really has to remember is the name of the show being advertised. Then, with a quick trip to the web he or she could pull up the network's website and start streaming the episode (for most major network shows, anyway). That removes a lot of detail from the recall process -- there's just one thing to recall instead of three -- and it also removes the timeliness since viewers can stream network TV over the Internet at any time of day and any day of the week.
Tags: digital signage, advertising, danoo
Tuesday, November 11, 2008
Citi Downgrades Focus Media (FMCN) to Hold, Slashes Price Target
So just a few months ago I noted how, unlike their American peers the publicly traded Chinese digital signage operators seemed to be doing pretty well. Well, it looks like the economy is catching up with at least one of them -- the biggie, in fact -- Focus Media. As a recent StreetInsider article noted, "Citi [is downgrading] Focus Media from Buy to Hold. Price target [is] slashed from $53 to $18." Apparently, Citi analysts are less than bullish on the availability of advertising dollars in China during this economic downturn:
Tags: digital signage, business, focus media
"We remain convinced that the Digital OOH business, with over 175k LCD displays & digital frames, and Allyes, proven business model with dominant market share - are valuable franchises, but believe near-term visibility in the current environment has diminished, and that advertiser demand is uncertain. Accordingly, until we get greater comfort on how long the weakness is likely to persist, we cannot recommend buying the stock."Global forecasts for both network growth and network advertising growth were relatively bullish in the last few reports I've read, so I have to wonder if this news will have any major impact. Focus is one of the few firms that could pull the entire sector's numbers down since it's so big (relatively speaking). The good news, at least, is that there's no domino effect to be had, here. In other words, Focus missing sales targets will hurt Focus, but probably have no effect on other networks, even in China.
Tags: digital signage, business, focus media
OOH ratings: Arbitron's in, Nielsen's out
I've seen so many things attributed to the crappy economy at this point that I'm having trouble keeping things straight. Does it mean harder times ahead, or more opportunities than ever? Less business or more business? Good things for the digital signage industry, or bad?
The latest news from Arbitron doesn't do anything to clear up my confusion. As today's press release indicates,
Contrast that with the recent news from Nielsen, which noted that,
Personally, I don't think the economy had anything to do with Nielsen's suspension of this program. I think there are simply too few traditional media buyers interested in the medium. The people who continue to keep most digital signage networks in business today aren't using Nielsen data or even traditional CPM figures to make their purchase decisions. They're continuing to rely on pilot data and a gut feeling, which will help keep the smaller players alive for now, but could well hamper industry growth when the economy improves.
Tags: digital signage, measurement, advertising
The latest news from Arbitron doesn't do anything to clear up my confusion. As today's press release indicates,
"EYE, the mall media specialist, has signed an agreement with Arbitron Custom Research to measure the effectiveness of mall-based advertisements and the psychographics of EYE mall shoppers.
Arbitron will conduct on-site mall surveys in multiple markets across the United States. This study will be comprised of two parts: adult and teen. The adult study will evaluate the effectiveness of EYE advertising based on demographic information as well as specific questions concerning shopping behavior, shopper segmentation and advertising appeal."
Contrast that with the recent news from Nielsen, which noted that,
"The failing economy just took its first research casualty. Nielsen and IMMI announced late Friday (Nov. 7) they would suspend their syndicated Out-of-Home Report, which measured viewing to TV outside the home. Since launching in April, the service only managed to sign two clients, ESPN and Zenith Optimedia.I understand that this is a bit of an apples-to-oranges comparison. After all, Arbitron's bread-and-butter are the self-contained research projects like the kind EYE has requested. Meanwhile, Nielsen had taken a much more ambitious approach of measuring the impact to a general set of OOH stimuli. Also, while it's unclear that Arbitron could parlay the EYE deal into a larger, more generalized measurement service for digital OOH media, Nielsen could always come back and re-activate their program if there was sufficient demand.
"In the current climate, there is limited economic support for this new measurement service," the company said in a prepared statement.
The final report will cover viewing through Nov. 9, 2008.
Nielsen didn't completely close the door on the project. "We recognize that measuring the out-of-home component of television viewing is an important need for our clients. We will continue to work on out-of-home measurement solutions, including efforts with IMMI," the company said.
The service was based on a panel of 500 participants in six local markets (New York, Chicago, Los Angeles, Miami, Houston and Denver) plus 1,700 national panelists. To collect data, IMMI gives respondents a cell phone equipped with software that uses pattern matching to track media exposure."
Personally, I don't think the economy had anything to do with Nielsen's suspension of this program. I think there are simply too few traditional media buyers interested in the medium. The people who continue to keep most digital signage networks in business today aren't using Nielsen data or even traditional CPM figures to make their purchase decisions. They're continuing to rely on pilot data and a gut feeling, which will help keep the smaller players alive for now, but could well hamper industry growth when the economy improves.
Tags: digital signage, measurement, advertising
Friday, November 07, 2008
Wireless Ronin (RNIN) takes a beating. Will they survive?
With $20M in the bank, it's hard to imagine a company in our industry going out of business, but Wireless Ronin seems to be trying hard to do just that. They announced their 3rd quarter numbers last night, which look roughly like this:
Even worse than the revenue numbers, though, are the margin numbers. From the press release:
So, will they survive?
Like I said in the beginning, $20M is a lot of cash to have in the bank, and at the present burn rate still gives the company almost a year to get their act together. With a head count of 125 employees, you can be sure there's also plenty of room for further layoffs, and my advice would be the sooner the better. RNIN needs to slim down to a svelte 25 or 30, close their NOC, outsource everything that isn't related to selling high-margin products and services, and stick it out until some of their bigger prospects decide to open their wallets. It'd also help to find a CEO who knows something about this business and its cycles.
Tags: digital signage, wireless ronin
- 3rd quarter revenue of $1.9 million for the third quarter of 2008, up 73% from $1.1 million in Q3 2007.
- 3rd quarter net loss of $4.6 million compared to a net loss of $2.4 million in Q3 2007.
- Basic and diluted loss per share of $0.31 compared to a basic and diluted loss per share of $0.17 last year.
Even worse than the revenue numbers, though, are the margin numbers. From the press release:
For the third quarter of 2008, gross margin averaged 5.2 percent, compared to a gross margin of 36.8 percent in the third quarter of 2007. The 2008 gross margin was impacted by investments in the company's NOC and costs to support customer pilots and program tests. Excluding these investments, gross margin would have averaged 20.7 percent through the first three quarters of 2008.So for every dollar of gross margins they earn, they lose about $46. RNIN, I have news for you: pilots will continue to happen, so I doubt you'll ever be able to simply eliminate those costs. In our industry, it's a big part of the cost of doing business. I can't speak to what the company has been spending on their NOC, but I can practically guarantee it was way more than necessary. In fact, a digital signage company that builds their own NOC is almost certainly doing something inherently wrong. Use a company like NTT/Verio for colocation, or even better, Rackspace for managed hosting.
So, will they survive?
Like I said in the beginning, $20M is a lot of cash to have in the bank, and at the present burn rate still gives the company almost a year to get their act together. With a head count of 125 employees, you can be sure there's also plenty of room for further layoffs, and my advice would be the sooner the better. RNIN needs to slim down to a svelte 25 or 30, close their NOC, outsource everything that isn't related to selling high-margin products and services, and stick it out until some of their bigger prospects decide to open their wallets. It'd also help to find a CEO who knows something about this business and its cycles.
Tags: digital signage, wireless ronin
Thursday, November 06, 2008
The morning press - digital signage news for November 6
Here are some of today's interesting clips from the web (and I've been away for a while, so I have a bunch of items that have been on my list for a while):
Tags: digital signage, digital signage news
Looking for more digital signage info? Check out WireSpring's Kiosk and Digital Signage blog for in-depth industry analysis and even more news about the digital signage industry. While you're there, feel free to read up on our digital signage software and services
- Could Software Allow Shelves To Look Back At Consumers? - Storefront Backtalk's Evan Schuman takes a look at the upcoming battle between in-store profiling and privacy concerns. Well worth the read.
- CBS Outernet Builds Out GameStop TV Network - Since inking a deal with GameStop in June, CBS Outernet has so far installed a new, high-definition, digital network with 40" LCD screens in 1,500 GameStop stores. Installation of the remaining 2,500 stores will be completed by June 2009.
- Network Digital Signage Report: Examine the Infrastructure, Displays and Technology - MultiMedia Intelligence believes that digital signage networks have a permanent place in the communications landscape. The biggest immediate challenge to digital signage is the current global economy. But once that red-flag is lowered, it is likely that investment in digital signage solutions will be as great as it has ever been.
- Digital In-Theater Network Bows Supporting Website w/Interactive Trailers - National CineMedia, operator of the largest digital in-theater network in the country for cinema advertising, is extending its FirstLook movie theatre pre-show program to the web.
- Richardson Electronics' Display Systems Group Unveils New Brand Identity - Canvys also combines decades of engineering and manufacturing expertise. Composed of three longtime industry leaders—Pixelink, A.C.T. Kern and Image Systems—Canvys is committed to finding the right solution for every customer’s visual technology needs.
- Costco Adds Custom Media to In-Store TV Mix - The retailer has worked with Thomson's Premier Retail Networks, Inc. on its in-store media network and content strategy since 2004. The new agreement extends this relationship into 2010.
- Digital OOH still clipping along, but growth has slowed - Bucking the downward trend of most media, and despite the sour economy, digital out-of-home advertising is experiencing the kind of growth most media would kill for.
- Koncept Analytics Releases New Updated Report on Global Digital Signage Market - The current global economic environment is full of uncertainties resulting from the turmoil in the credit and financial markets impacting all businesses. Advertising industry is not immune to this phenomenon - rather economic slowdown is likely to have a deeper and prolonged advertising downturn.
- Digital Out-of-Home Ad Spend Triples - The U.S. digital out-of-home (OOH) media industry - which includes video ad networks, digital billboards and ambient ad platforms - is on pace to grow 11.2%, to $2.43 billion in 2008 and now comprises 29.1% of overall out-of-home ad spending.
- ABI: Digital Signage Market to Double in Five Years - The research firm said this growth will be driven by retailers and advertisers desire to better target consumers in the out-of-home media market. The report predicts that in the United States, the overall market for digital signage software, hardware, installation and management services will reach around $1.4 billion by 2013, up from the $641 million market in 2008.
Tags: digital signage, digital signage news
Looking for more digital signage info? Check out WireSpring's Kiosk and Digital Signage blog for in-depth industry analysis and even more news about the digital signage industry. While you're there, feel free to read up on our digital signage software and services
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