Welcome to the new world of digital signage

BANGALORE, INDIA: Minority Report – a Steven Spielberg movie starring Tom Cruise and released in 2002 – was one of the first movies to bring to fore the concept of mass customization of outdoor digital signage. Using biometric identification techniques, passers-by would get offered special deals and discounts on all manner of retail products – as they walk down high-street. Futuristic? Not quite…

Over the last decade, retail companies have begun to rely heavily on telecommunications for the daily operation of their business. A highly-resilient, fast and secure interconnected network is mission critical to large retailers at every stage of their business value-chain - from sourcing raw materials and goods at optimal prices, to real time management of store stocks across their network, providing always-available & secure online shopping portals, and payment processing via credit or debit cards.

In recent times, high street shops have become aware of the power of in-store merchandising and customized marketing. Retailers have always been very particular about centralized control of their brand identity – and an exciting new telecommunications technology is bringing the future closer than ever before.

Welcome to the new world of Digital Signage!

The birth of a new medium
So, what is Digital Signage? It is a new telecommunications-enabled business solution that allows retailers to stream customized advertising, special offers & promotions, customer-specific messages, in any multi-media format, on a countrywide or regional basis to any of its stores – from a central location!

Targeted in-store advertising is already known to positively influence customers’ buying behaviors. With the new Digital Signage solutions, retailers can expect to enhance the impact of their promotional campaigns. It is now possible to customize advertising – right down to a specific store in a specific location. Retailers can now showcase their latest & greatest products faster than ever before.

This new technology not only ensures that effective marketing materials are used by each store, it also reduces the significant cost of printed materials and provides a consistency of brand experience. This is the new green and mean marketing machine!

From digital signage to intelligent signage
Digital signage is ideal for big in-store screens that deliver information on price promotions, product specifications, member discounts and upcoming specials. Interactive teleconference screens can also be used for direct interaction – enabling consumers to choose their preferred designs, vote for upcoming models and even engage with consultants on new product ideas! Very small screens, updated remotely in real time, could replace price tags altogether thus eliminating errors and allowing shop attendants to spend more time with their clients.

One of the primary advantages of digital signage is that it facilitates intelligent micro-segmentation - which means retailers can customize the in-store screen content easily and economically according to either geographic region or customer demographic at any given time. For example, if a store is located where there is a large population of students, information can be provided which is relevant to their particular tastes. Information can also be released on a timed basis – for instance, products appealing to the youth market can be displayed on weekends or after school on weekdays. Retailers can chose to display cartoons on Saturdays to keep the children busy while the parents shop, or wine ideas in the evenings, as people prepare for a night about town. 

Digital signage will become increasingly targeted as it combines with IP-CCTV in the future. IP-CCTV connects several CCTV cameras through a broadband network, drawing the feeds from multiple sites into a centralized data centres for analysis. This enables marketing teams to adapt in-store advertising to customer’s behavior, in real time.

A significant stride towards the future of retail
Another powerful aspect of digital signage is the ability for it to generate an innovative new revenue stream for retailers.

The attraction of high-definition screens in retail space – especially in hyper-marts and department stores that retail hundreds of different products & brands - provides access to a captive audience for select advertising. Think “In-store Information Kiosks” – interactive information ‘desktops’ within the store, able to direct customers to items, market in-store offers and provide other information.

For instance, in the mobile phone section of a department store, it is possible for retailers to recoup the costs of digital signage technology by inviting partners such as phone manufacturers to advertise on their screens. An intelligent, centralized system allows retailers to track and report on the content, impact and any audience interaction logged via the screens easily – which is crucial to showcase the return on investment.

Digital signage can also be used for training and internal communications. For example, staff information and management presentations can be broadcast to stores and distribution centres, within a market or even internationally, to keep colleagues informed. It is also possible for International offices to access centralized management systems over the network – via this technology.

The versatility of digital signage delivers many solutions for the retail sector. Looking ahead, the next wave of digital signage promises to be the brand new frontier in branding & marketing, with retail stores and consumers alike dictating and shaping the content.

Clearly, the days when in-store media was all about repeated loops, run from CDs which were changed once a month or simple FAQ information running on static video kiosk screens are long gone. While we can’t yet say that that future – as shown in Minority Report - is here, we can claim to have made a significant stride towards it!

The author is Director, Carrier Sales, India, Cable&Wireless Worldwide.