A Deep Dive Into Digital Signage Deployment

This month's retail solutions forum is focused on the deployment of digital signage in retail. It's a timely article on a topic that generates regular requests for more information. The retail digital media deployment landscape is uncharted territory where best practices among retailers are hard to find. Our subject matter expert is Dick Trask, VP of marketing for digital media deployment specialists Starmount Systems.

What advice can you give on the effective deployment of content overa retailer's network of digital displays?
Trask: Digital signage is a concept familiar to the marketplace, and it is more established and understood now than it was just a couple of years ago. But while many people are comfortable talking about screens, mounting, and connectivity, the most significant component of a successful digital signage deployment often fails to get its due: content. It is king.

Digital signage media is special. It is not TV. It is not a PC. It is not a newspaper circular. The content created for it is new, refreshing, and different from any other medium that has been encountered.

Specifically, what advice do you have on content ownership?
Trask: It is important to note, content takes time, talent, and money to create. Someone or a company makes an investment to create content for their digital signage network. The content can range from digital videos, to advertising, to content feeds. The realization that content is a valuable commodity for digital signage comes with a simple rule of thumb: Pay for or negotiate the rights of any content that is not yours.

Building content and licensing content into your business models and standard operating procedures will enable you and your company to thrive and charge equally for your value- adds.

Before you negotiate with a digital content owner, you will need to make sure that you ask the following questions:

What is the intent of the content?

What is the distribution strategy?

Who has access to the content?

What about content creation?
Trask: A successful digital signage network must have engaging content that grabs attention and must continue to display interesting content to keep the viewer's interest. Showing continual ads is by far the quickest way to provide a negative experience to the audience. Providing content that is relevant to the audience you are trying to reach will ensure you keep their attention.

For companies deploying digital signage content, the question may be more appropriately to buy, or not to buy.

Like most things in life, it all comes down to money. Custom content, if created by professionals with the time, skills, and tools to do it correctly, can be very engaging. It can also convey a message that is more aesthetically pleasing and better aligned with the target audiences. Custom content can range from inexpensive Flash-based content to expensive video-based content.

Typically, custom content is created using purchased elements, e.g. stock photos, sound loops, etc., combined with designer-created elements, e.g. backgrounds, skins, composites, etc. "Made from scratch" content, e.g. where every element (photos, videos, audio, graphics, etc.) is unique, can be more costly. A couple of minutes of video or animation of purely original content could cost in the tens of thousands of dollars. At the other end of the spectrum, purely stock content, if not combined with some custom elements, is generally rather boring and typically misses the mark with the audience.

Since very few want to present content that is either outrageously expensive or incredibly generic, most content will likely be a combination of custom designs mated with purchased elements. The real differentiator is the degree of customization and effort put into each segment of the message.

Whether the content is purchased or created in-house, the content must be relevant to the intended audience. Displaying ads for bathroom tissue on a digital signage network located in a fast food restaurant delivers the wrong message and will encourage customers to eat in your competitor's restaurant.

What are some content management best practices?
Trask: The content management system is the heart of any digital signage network. Digital signage networks range from networks being driven by DVD players to fully dynamic networks with content driven by integrated databases. Because digital signage networks are designed to operate 24/7, the management of digital signage networks requires a content management system that creates and stores playlists, manages the scheduling and distribution of content to the players, and provides for a hierarchical content creation and authorization environment. In addition, the content management system must provide for health checking, system maintenance, and, in the case of ad-based networks, provide affidavits to prove that ad content has been displayed and how often.

Are the promises of ad revenue streams real?
Trask: Ad-based networks are very prevalent around the world. Network managers operate digital signage networks and sell advertising to brands looking for a unique opportunity to reach their intended customers. These ads can be dynamic and respond to external stimuli such as weather and time of day.

Ad-based networks can be located in a shopping mall where the displayed ads are sold to the stores in the mall. This provides an opportunity to encourage potential customers to visit specific stores in the mall and take advantage of promotions displayed on the digital signage network. To further encourage customers to visit the stores, many digital signage networks connect with shoppers' cell phones. The shopper interacts with the digital signage network by sending a text message with a promotional code listed in the digital spot. The digital signage network then sends a reply text message to the shopper's cell phone with a promotional code that can be used in the store for discounts or other promotions. Ad networks come in many flavors but the following three are most prevalent:

The store owns the network and sells ad spots to brands being sold in the store. In this case the entire network is owned and operated by the store. A good example of this is Best Buy. Best Buy employs their internal resources to develop spots for products being sold in the store.

The store contracts out the digital signage network. The digital signage network is owned by an advertising agency, and ads are sold to brands who are interested in advertising on the network. A good example of this is found at Wal-Mart.

The store owns and operates the network but employs an advertising agency to sell advertising spots to brands interested in advertising on the network. A good example of this is a mall owner who owns and operates the digital signage network but employs an advertising agency to sell advertising spots to brands.

Manufacturers can purchase advertising on any of these digital signage networks simply by interacting with the network operator or their advertising agencies. Companies like Lamar and Clear Channel erect digital billboards along roadsides around the country. Unlike traditional billboard advertising where a single advertiser owns the board for a period of time, digital billboards display a loop of advertisers, usually 6-8 spots that are displayed in a slide show format. While this advertising is becoming more popular, the concept is very highly regulated by each local municipality. Many municipalities view the motion as hazardous to the driver viewing the ads.