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Social Media Opportunities and Challenges in Digital Signage


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This is an Insight Brief covering the social media opportunities and challenges in the digital signage industry.

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Social Media Opportunities and Challenges in Digital Signage

  1. 1. SOCIAL MEDIA OPPORTUNITIES AND CHALLENGES IN DIGITAL SIGNAGE INSIGHT BRIEF Author: Lynne d Johnson SVP, Social Media Advertising Research Foundation Phone: 646.465.5859 Email: May 10, 2010
  2. 2. WHATʼS INSIDE? Overview Key Insights & Trends: Whatʼs emerging in digital signage The Vale Proposition: Where is the Value in digital signage and social media The Digital Signage Ecosystem Key Players in Social Media Delivery in Digital Signage Case Study: AT&T Text Battle Jumnbli Case Study : Vans Behere Times Square Case Study: Fountainsquare Aerva Pic 2 Screen Valentineʼs Promotion Case Study: Nokia Ovi Signpost in London Case Study: LocaModa Brings Foursquare to Las Vegas Case Study: American Eagleʼs 15 Seconds of Fame in Times Square Digital Signage/Social Media Opportunities Digital Signage/Social Media Challenges OVERVIEW This paper answers a few significant questions about the emerging practice of merging social media with digital signage (place based advertising). 1. How can Social Media and user-generated content intersect with digital signage, and take whatʼs been a “push” model  to make it more personalized and engaging. 2. How best to incorporate some of the features and elements of social media that really draws consumers in? 3. How can more end value-be delivered to the consumer? 4. How can mobile providers help their customers do a better job of messaging and targeting? In order to answer these questions, we must understand: Where is the value in this space? What does the ecosystem look like? Who are key partners leading the technology in the space? What are the technology gaps? What are the measurement standards and standard currency trajectory? KEY INSIGHTS & TRENDS ➡ Digital Out Of Home is a $2.7b industry, according to Adcentricity. ➡“Amid a sharp downturn in global advertising spending and a decline in traditional out- of-home advertising in 2009, digital out-of-home media is among the fastest growing 2010, The ARF 2
  3. 3. media in the world and will continue on an upward track in 2010,” according to a new global forecast from PQ Media, the leading provider of media econometrics. ➡Spending in the emerging media segment of digital out-of-home (OOH) is on pace to increase 2.0% to $2.47 billion in the U.S. in 2009, while digital OOH expenditures worldwide will grow 4.7% to $6.69 billion, according to the third annual PQ Media Global Digital Out-of-Home Media Forecast 2009-2014. ➡ According to Adcentricityʼs Q1 Digital Out-of-Home Market review: “80% of 2009ʼs spending went to 20% of the network categories.” ➡ Research conducted by Arbitron has shown how incredibly effective this media form is at reaching bar goers.  ➡ Arbitron research shows that Out-of-Home reaches 67% of Americans 18 and over every month, and delivers a fairly representative cross-section of consumers. 76% who have seen digital signage note seeing it in multiple venues. ➡ The Digital Promo Network Point-of-Sale Study reveals that Convenience Stores show 88% sales lift with digital signs vs static signs. ➡ The Consumerization of information technologies has a direct impact on the successful effects that Digital Signage has on Point of Sale purchase increases. ➡ A shift in advertising spending, and a focus on social media, is creating an opportunity for the Digital Signage market. ➡ In general, social media is being heavily employed by brands to reach customers and employees. ➡ Content is king, therefore integrating content (with a social media bent) into digital signage in an integrated communications strategy is becoming primary, especially as advertising dollars continue to shift. ➡The technologies involved in digital signage continue to advance and changes in supply structure are accelerating industry revenue and streamlining display deployment. ➡Digital signage offers tremendous hyper-targeting opportunities. ➡ According to Adcentricity: “Networks operating in retail venues are dominating Digital OOH spending, following the same patterns as traditional media spending – with automotive, financial services and telecommunications by far the biggest categories.” ➡Twitter and location-based social media has mobilized nearly everyone, providing great benefit for the Digital Signage industry as an interactive advertising and communications tool. 2010, The ARF 3
  4. 4. The Industry is Nascent: “The big picture is that the industry is very nascent and fragmented, and most companies claiming to use UGC or social media are not really doing so in any meaningful sense. There's more evidence of social media on signage at conferences and events like pop concerts. LocaModa is pretty much pioneering the space using Text messaging, Twitter, Facebook, Flickr and Foursquare on thousands of screens in venues from Times Square to screens on jukeboxes. Opportunities are best explored from the perspective of end user, networks and venues--venues benefit via engagement, marketing, ad revenue (in some cases), loyalty and reduced wait time.” - Stephen Randall, CEO, LocaModa THE VALUE PROPOSITION Value propositions are still emerging for DOOH/Digital Signage, as the industry is still nascent (as well, the social media industry is also still nascent). Best practices are still being developed for the industry. Innovation in this industry lies in testing the best solutions to reach targeted consumers with the most appropriate messages--to engage them--and provide the best tools for obtaining feedback. The value for this industry lies in what opportunities are being built by those innovating in the industry today. The industry itself will define the value proposition by making digital signage a must-have (not just an also tool) for advertisers. The cost of doing digital signage has to decrease in order for the value to increase. When there is true integration between the 1st, 2nd, 3rd, and now the 4th screen, the value proposition for digital signage will increase and possibly reach a tipping point. The value can be increased by integrating all 4 screens into a cohesive communications strategy that includes interactive engagement, true measurement of audience participation and impact, and the ability to precisely target the right audiences. When considering how to increase the value of digital signage, especially as it relates to social media, the industry needs to establish a definitive case for engagement including interactivity and its impact on the consumer. 2010, The ARF 4
  5. 5. THE DIGITAL SIGNAGE ECOSYSTEM iSuppli Example: 2010, The ARF 5
  6. 6. Scala Example: A traditional digital signage ecosystem includes: •Content creation tools •Media and network management software •Player hardware and software •Integrators to build systems. 2010, The ARF 6
  7. 7. The players in the digital signage ecosystem includes: •Content Providers •Network Operators •Project Design •Software Developers •Bandwidth Providers •Display Manufacturers * In this ecosystem, social media integration would come at the level of software and applications development and deployment. DIGITAL SIGNAGE/SOCIAL MEDIA KEY PLAYERS Aerva Aerva Inc. offers a suite of software and services for creating, managing, delivering and engaging with compelling content and experiences across networks of interactive digital displays. A pioneer in digital signage technology, Aerva enables real-time interactivity between mobile applications and digital display networks. Adcentricity Adcentricity plans, buys and executes digital out-of-home media, providing a strategic and holistic solution to agencies and brands. With a total of 140,000 screens that produce over 200 million monthly impressions, ADCENTRICITY is the largest coast-to- coast aggregator of digital out-of-home. The company is often touted as the leading strategist for DOOH. Adcentricity sees the use of social media integrated with digital signage as offering the advertiser an extremely well delivered message. Array Interactive Array Interactive provides content and audience engagement strategies, delivers content, template and rich media, and application design and development services that enable companies to reach people in more targeted ways. Overall services include: 2010, The ARF 7
  8. 8. content, display, audience engagement and environment strategy, content management and workflow, content development and template design, administrative and end-user training, interactive touchscreen and mobile applications. LocaModa LocaModa positions itself as the dominant player in this space in terms of providing thought leadership, as well as the necessary tools to really make social media and digital signage work well together to engage consumers. One of the companyʼs technologyʼs, Wiffiti “Has been used at thousands of large-scale events (concerts, gallery openings, corporate conferences, nonprofit fundraisers, several major inauguration events, South by Southwest, and political conventions--including both the Democratic and Republican National Conventions). It is also used extensively in digital signage networks ranging from huge jumbotrons in Times Square to thousands of screens in bars, cafes, schools, entertainment centers and even churches! We've used our deep understanding of user experience in digital out-of-home, web, and mobile to distill your feedback and requests for new features into this latest release.” By connecting digital networks with social media and mobile messaging, LocaModa enables over 100,000,000 people a month to interact with their environments in thousands of venues and high-traffic public spaces. The companyʼs cross-channel platform combines the reach of television with the interactivity and measurability of the web. The company has also launched an app store bringing together the best of its offerings with a heavy slant toward social media applications. SeeSaw Networks SeeSaw Networks brings place-based advertising to DOOH. Using “Life Pattern Marketing,” Seesaw places brand messages on digital screens and billboards that are located where the people you want to reach are during their daily life pattern, out and about living life. SeeSaw has partnered with LocaModa to provide extended impressions to engage larger communities through viral marketing and social networking. The partnership leverages SeeSawʼs network with LocaModaʼs platform across DOOH, the Web, and mobile phones. The opportunity enables people to interact with digital screens in bars and coffee shops and to have those interactions posted to social networks like Facebook or Twitter. People can interact with people in the venue as well as friends online and on mobile by engaging with digital signs. When consumers respond in a venue via text, the messaging (call-to-action) gets posted to their social networks, 2010, The ARF 8
  9. 9. making it viral. Contesting and gaming can also be incorporated into the programming to attract and engage more people. SOCIAL MEDIA DIGITAL SIGNAGE USE CASES AT&T Text Battle Jumbli Objective: Fleishman Hillard wanted to raise the brand awareness for certain AT&T messaging phones. The Concept: AT&T branded Jumbli in Facebook and 1,200 locations including Times Square for a 4-week period. It was the first time Facebook connected to DOOH NetOps. LocaModa brought media $ to 7 DOOH NetOps. The Story Unfolds: Reach was greater than 800k impressions a day and over 900 unique mobile players. There were over 300k plays over the 4-week period. This resulted in over 150,000 unique world plays. Overall consumer reach was 11+MM through the digital network.The top cities that participated were LA, New York, and Chicago. The average mobile engagement was 4.15 mins and the average web engagement was 76.77 mins. (To watch video: 2010, The ARF 9
  10. 10. Vanʼs BehereTimesqaure Objective: Vans wanted to build a global campaign to engage youth and their creative self-expression, which is signature of the Vans brand. The Concept: Vans engaged LocaModa to launch an interactive billboard, as part of their “Be Here” global interactive campaign. Fans from around the world were asked to share photos and messages to be displayed on the 37.5 x 25.8 foot digital billboard in Times Square. Participants submitted messages from December 15 - January 5. All messages appear on Vans webiste, while the best submissions ran in real-time in Times Square during 10 minutes of special Vans programming each hour, 24 hours a day. The Story Unfolds: Take into consideration that 1.6 million people pass through Times Square every day, and 500,00 gather there for New Years Eve. Factor in the viral number for each user who uploads a photo and message and then receives an email to their “moment” with the ability to share with others. Using the Dunbar number, we could say that this user has at least 100 connections that theyʼre sharing with at any given time, on any given social network. This was an exercise in brand awareness, as well as brand ambassador influence on a brand. (See the interactive site: 2010, The ARF 10
  11. 11. Fountainsquare Launches Aerva Pic2Scren for Valentineʼs Day Campaign Objective: The Cincinnati Center City Development Corporation (3CDC) wanted to revitalize the cityʼs downtown as the economic, cultural and civic hub of the city. One element of the project was a complete facelift of Fountain Square, a city square and pedestrian zone. The Concept: 3CDC installed a large 42ʼ x 24ʼ LED display on top of Macyʼs department store and looked for an all-encompassing software and network management solution that would enable the LED display to be used for different messaging campaigns, such as concerts, community messaging, advertising and also for fun and games. 3CDC chose Aervaʼs AerChannel technology to drive the display starting October 2006. In 2007, for a Valentineʼs Day campaign, 3CDC employed the use of Aervaʼs Pic2Screen social media application for photo upload by users to the giant LED display. It was sponsored by P&G, with additional sponsorship from Hyatt Regency, Jones the Florist, Via Vite restaurant, and KISS 107.1. The Story Unfolds: With the Aerva Pic2Screen social media technology, users could email photos to a special email address to be selected for display on the giant LED in Fountain Square on Valentineʼs Day. 3CDC was able to use the application to bring UGC to the square and to help consumers connect with brands. They began accepting pictures February 1 so that users could trigger their photos to appear on the screen using SMS on Valentineʼs Day. (See more Aerva use cases for SM integration with digital signage category/news/ and 2010, The ARF 11
  12. 12. Nokiaʼs Huge Ovi Interactive Signpost in London Objective: Nokia wanted to promote that Ovi maps is free and to further promote its ʻGood Thingsʼ feature within Ovi maps. ʻGood Thingsʼ enables users to submit points of interest to add to the Ovi map and share those locations with the world. The Concept: Nokia worked with agency Farfar on the installation of a 50-meter tall, six ton interactive signpost in the middle of London that would show Ovi maps ʻGood Thingsʼ feature. Nokia phone owners could submit points of interest through a dedicated site (via SMS or email), and the signpost would display the name and direction of the spot rotating to turn towards the location. The campaign was supported with a Twitter and Facebook tie in, with Facebook to announce the event and Twitter to show updates. The messages were also streamed to, where all the locations were synched with Nokiaʼs ʻGood Thingsʼ map. The Story Unfolds: On the first day of launch there were so many submissions that the servers crashed. Nokia wasnʼt able to display all of the user-generated content and could only display a portion of them. “The Worldʼs Biggest Signpost,” as the campaign 2010, The ARF 12
  13. 13. came to be known, became a tourist attraction where many stopped to take photos with the signpost. On launch, there was also a tie in of a live event, where attendees got to meet the product manager for the site and take a tour for a behind the scenes look at the operation. This event generated photos on Flickr, tweets on Twitter, and blog posts from the Nokia community. (To watch video: and to watch the case study study/18749) Locamoda Brings Foursquare to the City of Lights Objective: Locamoda wanted to bring Foursquare visualizations to place-based networks. The Concept: Locamoda secured a deal with Indoor Direct, one of the largest digital signage networks to have the foursquare application featured in over 1,000 quick service restaurants. Through a partnership with Clear Channel Outdoor, Locamoda was able to visualize Foursquare check-ins on the 126-foot LED digital billboard at the entrance to Las Vegas Miracle Mile Shops. With Foursquare, users check-in to their favorite locations to announce where they are to their friend network. They earn points and badges and can become ʻMayorʼ of locations they frequent often. The Story Unfolds: Tying digital signage to location-based mobile services extended the digital conversation to a broader network of people. The integration undoubtedly increases Foursquareʼs user base. This installation also creates additional value for advertisers and venues. Through their partners, LocaModa reaches the digital screens of over 15,000 venues with an audience of over 100 million every month across the US. 2010, The ARF 13
  14. 14. (To watch video: American Eagleʼs 15 Seconds of Fame in Times Square Objective: American Eagle wanted to offer a compelling customer experience in conjunction with the launch of its 25,000 sq. ft flagship store in Times Square. The Concept: The store itself features an interactive experience, including four levels of shopping and several interactive digital features. There is also a 13-foot video wall inside the store to add additional impact. With the help of partners: The Barnycz Group, Barco, R/ GA, and ABC Sports & Entertainment Sales, the store featured a customer experience called “15 Seconds of Fame.” When customers make a purchase, they are invited to pose in a photo studio and their photo, with a 50-character message, is projected on a 15,000 square feet (25 stories high) LED screen outside the store. The screens feature content for 18 hours every day. The Story Unfolds: American Eagle had a goal of getting customers to discuss their experience with the store online in social networking spaces like Twitter, Facebook, and blogs. AE encouraged customers to take photos of their experience and their messages broadcast on the display to share them on social networks. One customer even used his “15 Seconds of Fame” to make a marriage proposal. AE had a number of advertising opportunities with this model including real-time delivery and the showcasing of multiple products. 2010, The ARF 14
  15. 15. OPPORTUNITIES The Future of Shopping Becomes More Social In this video, Cisco takes a look at the future of shopping. What is clearly evident from research and current trends, is that shopping is going to become more social. For example, say a customer “checks-in” to a store, and they receive recommendations of what they may like to purchase based on past purchasing behaviors or recommendations from friends in their network. Already with Bing shop-and-share-with-bing.aspx, you can use Twitter and Facebook on the HTC HD2 smartphone to check if Bing shopping has given you the best prices. In 2007, Facebook launched Beacon, a service that shared your purchases on several retail sites online with your friends within Facebook. With better opt-in and privacy measures than what Facebook offered, the opportunity is there for a partner to make such social shopping experiences exist on a mobile to digital display format. Location-Based Technologies To Play A Greater Role in Digital Signage As can be seen in the LocaModa Foursquare example, the opportunity exists, again at store level for a rich interactive experience. Restaurants, retailers, and C-Stores can employ such technologies to publicly share who is checking in to their locations. This might go one step further, enabling customers to share with one another what theyʼre currently doing (as in purchasing or eating) at their location. A restaurant example might include uploading a photo of your meal with a message that can be displayed on a digital display and sent to your social networks to share with your friends. Augmented Reality at Point-of-Sale Increases Engagement and Purchase Behavior An example such as Legoʼs Digital Box Kiosk uses Augmented Reality to show customers what they can do with Lego Technic. Itʼs an opportunity to see in 3D imaging, or as close to reality, how a product actually works and functions. Legos boxes also have AR built in with a QR code that can be held up to a Kiosk to activate an AR feature that displays a 3D model of the Lego kit inside. The opportunity exists to include social sharing of the AR experience, but also of mobile QR code features being added to the experience. Several mobile apps can already scan QR codes to provide consumers with more information and interactivity. Revenue Models are Becoming More Attractive Revenue models are increasingly changing as hardware prices per-screen continues to become less expensive. Overall, prices have deflated by approximately 30% over the past few years. This makes the ROI for digital signage much more attractive. Also, because of media convergence, economies of scale can be achieved, therefore making planning and purchase of DOOH much easier than ever before. With this in mind, integration costs are still high, yet since hardware costs are now a smaller fraction of the overall deployment costs this channel is still a valuable spend for advertisers. 2010, The ARF 15
  16. 16. Digital Signage Has Great Impact on Lift Research has shown that digital signage communication has potential to lift product and service inquiries, as well as purchases and usage. This creates brand awareness as well as customer relationship management opportunities. There is an increased reach for a product or service with digital signage, and social media enables a higher level of engagement. Through social--texts, downloads, mobile browsing, sharing, voice--there is great potential to increase foot traffic to locations and web traffic to sites, also increasing in-person, web, and mobile purchases. Shopper behavior is greatly influenced by digital messaging, as outlined in the Out-of-Home Video Advertising Bureau guidelines, which provide results for measuring the size of an audience in a given space. Nielsen research further supports that digital signage changes consumer behaviors. Social media and friend networks can be the driver of those changed behaviors as the trust level for friend recommendations outweighs the trust level for messaging coming directly from brands. The industry should also focus on increasing the ability to precisely target intended audiences. Four Screen Cohesion The opportunity for providing campaigns and context to the user experience that work fluently across the four screens --TV, Web, Mobile, Digital Signage -- is becoming a greater reality. As millennials increasingly become the target consumer for advertisers and venues, their socially connected lives will bring with them greater opportunity to provide deeper, richer, consumer experiences not only across the four screens but in a heavy integration of mobile, social, and digital signage. Overall Opportunity for Mobile In the SM/Digital Signage Space Mobile is the primary connector between social media and digital signage, providing the real glue to ensure delivery of real-time content and interaction. Partnerships with retailers, as well as social media digital signage operators and networks and brands will provide overwhelming opportunities in this space. Mobile brands also have the opportunity, as Nokia has shown, to push brand awareness and product launch messaging in novel ways. The tremendous opportunity for hyper-targeting, increases the interest in mobile (social networking and location-based) digital signage campaigns for advertisers. © 2010 NetWorld Al CHALLENGES The Digital Divide of Digital Signage Agencies are allocating spending to DOOH, but they have yet to fully adopt or grasp the full capabilities of this marketing channelʼs potential. This should be a natural fit for a digital agency, especially as it regards the cohesive interplay of four screens into one campaign. Part of this misunderstanding for agencies is that the ROI is not fully understood. Another factor in the slow to speed digital agency adoption for digital signage is that there are always new networks cropping up. This makes it nearly impossible for agencies and marketers to fully understand and keep track of the media 2010, The ARF 16
  17. 17. available to them or even to understand the benefits of what one network offers over another. Measurement Standards Donʼt Exist One of the primary challenges for digital signage are with measurement and creative unit standards. In 2010, network operators have begun to offer audited and accepted metrics, but again these are not standardized across the industry. Since metrics are not clearly defined, the industry-at-large is advocating for aggregators and aggregation models. Broadsign has released audited measurement results from Arbitron to enable advertisers to measure ROI. Together with SeeSaw, BroadSign is releasing an open API to enable the industry to collaborate on open standards for measurement of DOOH. The Out-of-Home Video Advertising Bureau has also issued guidelines to better understand the value of a DOOH audience to further address the challenges of calculating appropriate metrics within the industry. All Systems Arenʼt a Go Many of the systems for DOOH are complicated and expensive. There are many different groups (players) involved in getting one Digital Signage deployment launched. In this regard, the opportunity for creating large, scalable campaigns is an overwhelming challenge because it is a complex landscape to traverse when it comes to networks. Also, there are myriad environmental considerations at play. Platforms that break down silos need to be created in order for scalable models to thrive in this space. Technology Challenges Mobile and DOOH integration isnʼt as easy as it seems, but together they will be the drivers of the interactive and customer engagement model of the Digital Signage industry. Another technological challenge is presented by the varying formats, files structures, and standards between systems, which creates a further technological gap. The major challenges in the tech area come in the form of aggregation and real-time delivery. Digital Signage is Very Local According to Adcentricity, 70% of all network sales are from local sales efforts, driven by the network sales staff. Most networks have no national sales force, which translates into agencies and brands being unaware or uneducated on the value of DOOH offerings. What About Those Legal Issues? There are many issues when it comes to user generated content in the legal arena. Since there are rules for mobile carriers when it comes to mobile content, anyone serving SM DOOH campaigns should consider using systems that support filtering, moderation, and curation. Also mobile users must have full disclosure on messaging pricing, and it is suggested that there be no premium set for messaging to DOOH systems as pricing could prove to be a barrier to interactivity. Disclosure must also be met on the level of access to the user in terms of whether the operator will send further messaging to the user. This can get into murky waters with spamming issues (CAN- 2010, The ARF 17
  18. 18. SPAM Act). Further, attention must be paid to copyright, defamation, privacy rights, and public decency laws when it comes to UGC. Because of this, it is becoming expected that network operators, event planners, and messaging suppliers provide Professional Liability (Errors and Omissions) insurance, covering possible inappropriate content being displayed in public. 2010, The ARF 18
  19. 19. PRIMARY RESOURCES Adcentricity, “Digital Out of Home and Social Media” Adcentricity, “ Q1 Digital Out of Home Market Review,” April 2010 Digital Signage Today, “Five Ways to Engage Customers Beyond Digital Signage,” Digital Signage White Paper, Sponsored by FullHouse, 2009 Jacob Eldger, “Twitter on Place Based Screens: Why Itʼs Not So Simple,” March 2010 Keith Kelsen, “Digital Signage, The Top 10 Trends for 2010,” December 2009, Digital Signage Today MediaPlanet, “Digital Out-of-Home: Your Guide to Digital Signage Application & Business Trends Today,” January 2010 OTX & SeeSaw Networks, “Engaging People with Digital Out-of-Home Media: Digital Out-of-Home Media Awareness & Attitude Study,” United States 2007 PQ Media, “Global Digital Out-of-Home Media Forecast 2009 - 2014: Advertising Spending, Trends & Analysis,” 2009 Stephen Randall, CEO, LocaModa (Phone and email interviews) Stephen Randall, CEO, LocaModa, “Social Networking and User Generated Content: Expanding the Mobile Digital Signage Footprint and Giving Users the Platform,” Digital Signage Expo 2009 Bill Yackey, DSCE, Editor, Digital Signage Today, “Digital Out-of-Home: The State of the Industry Today and Tomorrow,” Digital Signage Show Europe 2009 OTHER RESOURCES Blogs: Digital Signage Insights Blog, Digital Signage Blog, Daily DOOH, Websites: Digital Signage Today, Digital Signage Expo, Digital Signage Weekly, Digital Signage Association, The Web Outside Stuart Armstrong, President, EnQii Digital View, “Teeny Shoppers,” January/February, 2008 Stephen Randall, CEO, LocaModa, “Part II - Building An Interactive Digital Out of Home Experience: Basic Considerations for Mobile & Social Interactivity on DIgital Out of Home Networks,” August 2009 Stephen Randall, CEO, LocaModa,”Dealing with F**K & Other User Generated Content Challenges for Digital Out of Home Networks,” August 2009 2010, The ARF 19