GlobeSt. Retail gives a primer on digital signage

Real estate and retail e-zine GlobeSt. Retail just released this article that gives an introduction to digital signage for those not yet familiar with the industry. It features quotes from me, so how can it be bad :)

Here's a clip:

"Hardly new, digital signage, which, to a low-tech person, translates to full-motion video versus “static signage,” is still in the early stages of development and it is proliferating rapidly. Wal-Mart, Best Buy, Albertson’s, CompUSA, Dick’s Sporting Goods and some Simon Properties’ malls, are among those with systems already in use."
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"Traditional advertising reaches people at home in hopes of luring them to a store to buy a product. But print readership is down, and with the advent first of mute buttons and now TiVO, more and more people are tuning out commercials. Consequently, advertisers are moving ad dollars to people while they are in the store and finding out that the closer the prospect is to the point of sale, the higher the return."

Digital Signage Firm Focus Media Acquires Commercial Location Advertising Company

Do you know who Focus Media is? If you read this blog or are involved in the digital signage industry, you should. And if you don't:

"Focus Media operates the largest out-of-home advertising network in China using audiovisual flat-panel displays based on the number of locations and number of displays in its network. As of June 30, 2005, Focus Media had 35,710 display units in our commercial location network and in-store network throughout China. Flat-panel audiovisual displays are placed in high traffic areas, such as elevator lobbies of commercial buildings, retail chain stores, beauty parlors, karaoke parlors and golf country clubs. Over 900 international and domestic advertisers have placed advertisements through our networks as of June 30, 2005."

They recently announced, "the acquisition of Shenzhen Bianjie Commercial Location Advertising Company, an local audiovisual advertising network operator in Shenzhen.

"Shenzhen Bianjie Commercial Location Advertising Company currently operates its audiovisual advertising network in 54 commercial locations in Shenzhen. Under the terms of transaction, Focus Media has acquired a 100% equity stake in the company. Shenzhen Bianjie Commercial Location Advertising Company will also transfer all of its rental contracts with its existing property owners to Focus Media.

"Through this acquisition, Focus Media will further strengthen its network coverage in Shenzhen."

Their press release has the rest of the information.

Digital signage in movie theaters increase sales

aka.tv is running an interesting story on the performace of digital signage advertising networks in movie theaters. The network that they studied was from SignActive, who is managing New Zealand’s first cinema digital-signage installations. They have found that:

"According to the operators, the new technology has already enhanced ticket and candy-bar sales – and, with the number of sites potentially increasing up to 12, more third-party advertisers are expected to take advantage of the new foyer screens. So far, the advertising space has only been offered to the cinemas’ existing suppliers, which include the likes of PepsiCo, Panasonic, Nestlé and Allied Domecq."
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"Content is generated both locally and remotely. Live, real-time information, including movie names, times and ratings, is extracted directly from the cinema database using custom-written software specifically developed for this task by SignActive, and sent to the displays.

"But all creative content, including advertising, is distributed via a private network to the cinema locations from SignActive’s head office in Auckland, ensuring the system provides a hands-off solution for the cinema management."

While I can understasnd why suppliers would want to advertise their products in the theaters (since they're selling them there), I'm not sure what the draw will be for outside advertisers. Sure, there's a captive audience, but they're not primed to purchase outside goods while walking into a theater to watch a movie.

Pharmaceutical companies advertise on out-of-home, place-based networks

Reminding us that not all digital signage networks are of the remotely-managed variety is AFMN, who distributes DVDs to doctors offices and other health-related locations every month. Apparently, things aren't going so badly for them:

AFMN, Inc. (Pink Sheets:AFNN) and its subsidiary, African American Medical Network, Inc. ... anticipates that it will be receiving more advertising placements from pharmaceutical companies due to a shift that is occurring in the advertising industry that will likely allocate more advertising dollars to place-based media companies like African American Medical Network.

Referring to a recent article by Bob Ehrlich of DTC Perspectives, Inc. that pointed to an on-going shift away from traditional allocations directed at network television, to the desire of drug marketers to reach consumers at the point-of-care, and to a predicted 500% growth rate in the point of care business over the next five years, the Company's President Charles Richardson suggested, "We are gratified to see that someone else has seen this positive shift that is occurring in the advertising industry. We have watched this happening for some time now. And with more agencies and companies looking to target this type of captive audience, we are in the perfect position to meet their needs."

If you want to, you can read all about it here :)

Kroger deploying digital signage network

As reported here by Internet Retailer (and commented upon by myself in "Kroger launches digital signage / in-store TV network"), supermarket chain Kroger is teaming up with IBN to deploy digital signage systems to their 2,500 grocery stores throughout the US. Here's some additional information from the press release:

The system, provided by In-Store Broadcasting Network, will let Kroger coordinate messages channeled through in-store TV and radio networks, both supported by IBN, said Evan Anthony, vice president of marketing and advertising for Kroger. The system complements Kroger`s existing in-store music-programming network also provide by IBN. “For the first time, we can combine in-store radio and TV to deliver what we call perfect media, with multiple channels in each store displaying fun, exciting and relevant content focused exclusively on our customers,” he said.

In-Store Broadcasting Network`s programming is housed locally on a server at each location, and IBN’s proprietary scheduling and delivery software enables each server to receive new content as often as necessary over the Internet.

IBN will install the network over the next 18 months. Once completed, Cincinnati-based Kroger expects it to serve 68 million in-store shoppers each week with information ranging from new product announcements and prices to cooking recipes.

IBN buying lots of HSS speakers for in-store digital merchandising

BusinessWire notes that:

American Technology Corporation, an innovator of proprietary sound reproduction technologies, today announced an HSS(R) H450 purchase agreement with In-Store Broadcasting Network (IBN). Under the agreement, IBN has agreed to purchase 12,000 HSS H450s for their in-store media networks located in select first tier retailers. The agreement calls for ATC to begin shipping its proprietary HSS H450s to IBN in the quarter beginning October 1, 2005 with continuing scheduled quarterly shipments.

In-Store Broadcasting Network is the largest retail place-based media company in the world. IBN is the only measured electronic retail media company with exposure to more than 256,943,000 shopper visits per month in over 17,000 grocery and drug stores in the US and Canada. IBN deploys patented technology and systems comprising "Perfect Media(TM)," a unique synchronized and integrated media combination including audio, video, and other targeting technologies and methods that deliver advertising messages guaranteeing audience reach. IBN and Kroger Company recently announced a long-term agreement for the implementation of "Perfect Media(TM)" across the 2,524 Kroger stores starting in 2006.

IBN recently announced that Kroger, a current subscriber to their in-store audio services, would also be deploying digital signage systems in the near future. One should wonder whether the HSS speakers are intended for that deployment, since it is approximately the right number. You can read the rest of the press release here, or check out my article on the Kroger plan at "Kroger launches digital signage / in-store TV network."

Dynamic Signage Consortium to study digital signage usage in bars and nightclubs

"The Dynamic Signage Consortium announced today that they have teamed up with HappyHours.com to conduct the first of a series of sophisticated research studies to learn more about the awareness, use and adoption of Dynamic Signage in bars and nightclubs across the US.

"The Dynamic Signage Consortium's mission is to grow the dynamic signage industry through high quality market research and information dissemination. The Dynamic Signage Consortium unites companies that have an interest in the growing dynamic signage industry and provides its members with many benefits such as networking, standardization, resources, market analysis and state of the market reports. The primary objective is to document the voice of various dynamic signage customers using end-user surveys that will provide critical information to the industry.

"HappyHours.com Inc. is a leading website and e-newsletter for beverage alcohol consumers and the trade. The e-newsletter is currently distributed to more than 140,000 individuals worldwide and the website includes articles from some of the beer, wine and spirit industries' leading authors and experts. Through its HappyHours PRO division, the company is also dedicated to helping the beverage industry connect with their consumers through the use of technology and the application of various permission marketing tactics.

The rest of the PR may be found here.

EZ Show begins digital signage rollout

News from another digital signage company that I've never heard of until now :)

"EZ Show LLC, a Washington State multimedia production and distribution company announced today that it has secured an agreement to roll out the first wave of 500 flat screens to convenient stores through marketing company, Judan, LLC. Initially, these screens will be placed in local stores with a plan to expand to over 20,000 locations within the next year.

"EZ Show’s ownership of the screen means that the screen itself is FREE to the hosting retailer. The retailer also receives a complimentary ad and, if desired, a wireless internet “hotspot” for consumers to use while in-store. The retailer’s ad will be one of thirty, 30-second spots that loops every 15 minutes. The other ads that appear on the screen will be placed at a low cost to the advertiser - just $99 a week. And of course, the retailer has the final say about which adverts appear in their space.

"In addition to having ad space available for its flat screens, EZ Show is also creating LCD screen/brochure rack combination displays for use in stores, at trade shows, and in other locations where paper brochures are still needed as a take-away. The collection of orders for these combination displays has now begun for October delivery.

Read the rest of the press release.

Lamcy Plaza’s Digital Signage Advertising Network Attracts Mall Shoppers

"LamcyTV was first installed at the beginning of 2005 as Point-of-Purchase signage for mall tenants to help attract mall shoppers to their stores. To date however, Lamcy Plaza has already sold airtime to industry brands that benefit from the large premium market the mal attracts.

"Ahmed El Ridi, General Manager of SSS, a certified Scala Professional, explains, 'POS purchases make up 70% of all buying decisions – that’s a recognized fact of consumer buying behavior. Dynamic Digital Signage or Narrowcasting is highly-targeted advertising to the captive audience within the mall environment.'

"LamcyTV network consists of thirty-seven Plasma and LCD screens distributed in strategic locations where shoppers congregate, i.e. elevators and landings of escalators. The network is a joint project between Lamcy Plaza Management and Specialized Software Services (SSS), the leading provider and marketer of Dynamic Digital Signage Networks in UAE.

"The system employs twenty-five Scala InfoChannel® Players that drive twelve 17" LCD screens with built-in computers and twenty-five 42" Samsung Plasma Screens. The network is managed by Scala’s InfoChannel® Enterprise Edition Network Manager, and because of the mall infrastructure, controlled over a WiFi Network.

"To gain maximum ROI from the network Lamcy Mall Management advertises their own brands and displays mall services on the network. In addition, advertising is sold to large premium brands that are sold in the mall shops. Because of the advertising interest by premium brands and tenant stores, Lamcy Mall Management anticipates the investment for the installation will be recouped in less than one year. Lamcy Mall Management will engage a professional research firm at the end of the year to measure the effectiveness and sales uplift experienced by LamcyTV."

Find the rest of it here.

Kroger partners with InStore Broadcasting Network for digital signage

The nation's largest grocery chain is preparing to install a massive digital signage network. From the press release:

"The Kroger Co. entered into a multi-year agreement with InStore Broadcasting Network (IBN) to provide a television network for customers in more than 2,500 Kroger-owned stores across the country.

"...The satellite-delivered network uses plasma and LCD screens located in key locations throughout the store to deliver information about new products, services, cooking tips and special promotions. Kroger community service and relevant entertainment segments are also highlighted.

"...Installation of the network will take place over the next 18 months. It is projected that more than 68 million shoppers will be exposed to in-store media every week.

"...Kroger is one of the nation's largest retail grocery chains, operating 2,524 supermarkets and multi-department stores in 32 states under two dozen local banners , as well as 793 convenience stores, 552 supermarket fuel centers, 432 fine jewelry stores, and 42 food processing plants."

Read the complete article here.

Train TV firm TNX TV Faces Bankruptcy

From aka.tv:

The owner of a defunct British train-TV network says it needs to raise $1m or face bankruptcy.

U.S.-based TNX Television Holdings Inc. believes it needs that sum to stay in business following the collapse of its TNX TV network in England, and plans to ask existing stockholders for the money.

The crisis, revealed in a filing to the U.S. Securities and Exchange Commission (SEC) stock-market regulator, is the culmination of months of doubt about TNX’s future.

Earlier this year the company’s wholly-owned British subsidiary TNCI UK Ltd. appointed administrative receivers to manage it while seeking agreements with creditors.

Its network on trains run by Central Trains in England’s Midlands region continued to operate, however, through a new firm – 360 Onboard Ltd., also wholly owned by TNX in the U.S.. 360 Onboard had been incorporated the previous December, according to documents filed at Britain’s Companies House.

Now 360 Onboard has also hit trouble and suspended its TV network “when it became clear that it had insufficient near-term revenue prospects to cover the ongoing cost of operations, particularly daily content procurement and delivery”, according to the TNX SEC filing. For example, on 18 July, 360 was unable to make a £28,800 payment due to the Inland Revenue, Britain’s tax authority.

All but three of 360’s employees are having their contracts of employment terminated.

There are lots of interesting details about the rise and fall of this firm, along with some insights into the cost of installing, maintaining and removing narrowcasting equipment.

Read the whole thing here.

Albert Heijn to trial in-store digital signage

From aka.tv:

"Amsterdam-based Medialandscape has won the contract to run a digital-signage pilot for Albert Heijn, the Netherlands’ largest supermarket chain.

"Believed to be internally dubbed DIM – standing for ‘dynamic instore media’ – the Albert Heijn trial will involve five stores in as-yet-undisclosed locations, according to Dutch reports. An eventual rollout would likely include 200-400 stores from the retailer’s estate of 700+.

"Thirteen screens in each store – ten plasmas and three LCDs – will display a number of different channels, with significant variation in the content mix. For example, at store entrances and in meat and fish areas, the screens will display 70 percent Albert Heijn content and 30 percent third-party advertising.

"Vegetable and fruit areas will show only the retailer’s own content, but pharmacy, alcohol and cleaning materials will be 70 to 80 percent advertising."

You can read the complete story here.

NEC and Scala partner on lobby digital signage

NEC Solutions (America), Inc., a premier provider of integrated solutions for the Connected Enterprise in North America, has augmented its comprehensive digital advertising system and display offering through its partnership with Scala, Inc., the leading Pennsylvania-based developer of end-to-end software platform for centrally controlled and managed digital signage networks.

The partnership marries NEC's full range of ADVASuite(TM) displays with Scala's InfoChannel(R) 3 software platform to ensure an industry-leading broadband display solution for participating movie theatres. Together, NEC and Scala will help increase the revenue earning potential of exhibitors through high quality pre-feature and in-lobby advertising.

Take a look at the full press release here.

Watchit Media, Inc. Reports Financial Results

For the three months ended June 30, 2005 the Company reported revenues of $609,000, a 161% growth over the same period in 2004. During the June quarter, approximately 44% of revenue was derived from subscription fees the Company is paid under one year and two year renewable contracts with its clients. Gross profit for the same periods increased 207% to $377,000. As a percentage of revenue, gross margin increased from 53% for the same period in 2004 to 62% in 2005.

For the six months ended June 30, 2005, the Company reported revenues of $864,000, a 179% growth over the same period in 2004. During the six month period, approximately 59% of revenue was derived from subscription fees the Company is paid under one year and two year renewable contracts with its clients. Gross profit for the six month period increased 204% to $519,000. As a percentage of revenue, gross margin increased from 55% for six month period in 2004 to 60% in 2005.

You can view the rest of the press release here.

Cinemark selects digital signage provider

From aka.tv:

"In the latest development for the burgeoning cinema advertising market here, Cinemark USA, one of North America’s largest cinema companies, has entered into an agreement with Christie Digital Systems to outfit its nationwide network of nearly 2,400 screens with LCD projectors for the purpose of delivering pre-show digital advertising.

"According to Christie, installation of the projectors is to begin later this month in anticipation of Cinemark's digital pre-show advertising program scheduled to commence on January 1, 2006 in theatres reaching over 100m patrons annually across the United States.

"Under the terms of the contract, Cinemark will also purchase Christie’s projector networking technology, ChristieNET – which enables Internet-based remote content scheduling and monitoring – with every projector."

Find the complete article here.