Retailers light up digital signage networks to woo customers

With 80% of purchasing decisions made in-store and traditional advertising continuing to fragment, more and more retailers are implementing digital signage and complex IP advertising networks throughout their stores to broadcast branding and messages to shoppers. "Everyone's looking at digital signage now, trying to figure out what content is needed on-screen in stores to make people pick up a product, and not just be pretty wallpaper in the background," says Michael Girgis, president of Toronto-based Onestop Media Group, adding that retailers are realizing the store is a medium in and of itself. More retailers are implementing IP networks across their sites to create an infrastructure for integrated in-store messaging, says Girgis. Depending on the store's needs, this may include plasma screens, product signage and aisle displays, and screens on shopping carts. Retailers can control messaging centrally, correlate its effect on sales revenue and tie displays to other systems. In Toronto, for example, a soup brand's ad is triggered in the outdoor video display's play loop when the temperature falls below a preset level. Digital signage isn't just for big-box retailers such as Wal-Mart, which Girgis says is a pioneer in using the technology to run its own shows on in-store television. "We're seeing all types of retailers, from 10-store to 1,000-site companies, adopting digital messaging for different purposes: internal communications, reinforcing the brand, and fuelling vendor programs," he says. Early adopters in Canada include the Nova Scotia Liquor Corporation (NSLC), Tim Horton's and Sporting Life. A related trend sees suppliers shifting advertising funds to the new in-store medium. "Media dollars that would have been spent on TV and radio ads are moving into the store, because once the network is in place, it can also house the traditional media that agencies would have placed outside the store," says Girgis. Developing dynamic and relevant content is the main challenge for this new medium. Retailers can go beyond in-store broadcasts of sales and specials to engage consumers with meaningful information. For example, a screen in the pharmacy section of a supermarket might display UV indicators or smog alerts, while one near a street exit might display traffic reports. The NLSC has rolled-out digital signage to about 25% of its outlets across the province, says Rick Perkins, VP of communications. Static paper signs in product sections were replaced with digital displays that are delivered over the Web by an off-site provider and are programmable to the minute. "Now that we have dynamic signage, we can intersperse our own messages like how to mix drinks or tips about selecting wine with commercials for Bailey's Irish Cream." But the jury is still out on whether dynamic signage has an effect in engaging jaded consumers. "Digital signage attracts twice as many eyeballs as a static sign - but once they're attracted, it doesn't keep them there for a longer period of time," says Paco Underhill, retail anthropologist and author of Why We Buy: The Science of Shopping. To determine its impact, in-store media needs to develop similar measures and standards as traditional media, he adds. Old media audience measurers are eyeing this new area. ACNielsen Canada is conducting study pilots of consumer behaviour to track people's navigations in stores and reactions to displays, says Dave Mann, SVP at Markham-based Market Research firm. "Just as in television, what we're ultimately trying to determine is a gross point rating system for stores. The premise is certain real estate in stores is worth more in some areas because it has more eyes or traffic, so retailers can determine the value of displays and charge advertisers accordingly."

Retailers light up digital signage networks to woo customers

Broadcast | February 21, 2008

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