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Our take:
WireSpring has advocated the very limited use of tickers on digital signage networks for a long time now, as we have empirically measured just what professor Miller notes above. People don't process the scrolling text effectively, and when they are looking at it, the leave practically no attention resources devoted to the remaineder of the screen, which is usually not what the signage network owners intend.
Let's hope some DOOH networks learn from CNN's practice and start abandoning their scrolling text tickers in favor of signage elements that make sense.
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From a Retailer perspective the over-riding objective is to maximise return-on-space. How this is achieved will depend upon the role the category plays for that retail chain (e.g. Traffic Builder, Image Enhancer, Profit Generator etc.). The degree of creativity will be assessed against the retailer's policy to in-store attractors, the role the category is playing (a high margin image enhancer category would merit more creative display) and the degree to which creative presentation is proven to drive sell-out.
From a Brand perspective the objective is to demonstrate retail partnership that drives category growth. A sound strategic understanding of your category's consumers, built upon qualitative and quantitative research findings that can inform category presentation, is what Retailers crave. Overlay this data onto the Retailer's own consumer profile and category sell-out history to create a compelling fixture that 1) occupies the right position in-store, 2) attracts attention, 3) presents the most appropriate range and 4) provides compelling and relevant benefit messaging that will deliver results at the checkout.
Our take:
The difficulty lies with achieving some or all of these goals while not breaking the bank, as Carter indicates. While shopper marketing is becoming an increasingly important part of many retailer and CPG maker marketing mixes, it still controls a relatively small chunk of most companies' budgets. Consequently, these all-important strategies are left to be implemented on a dime.
The second part of Carter's analysis is equally important: while many companies are actually implementing brand- and retail-aware shopper marketing programs, few are going back to analyze the data afterward. Thus, while some studies have shown broad efficacy for the approach, there's no guarantee that any retailer or any brand could implement such a program and have it be profitable.
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While TV's audiences have been fragmented by the addition of hundreds of new channels, retail has been concentrating its consumer base via consolidation. Ten to 15 years ago, the top 10 retail accounts of the typical packaged goods manufacturer represented 20 percent of sales. No more, says Peter Hoyt, executive director for the In-Store Marketing Institute. "Due to consolidation and the rise of megachains," he says, "those top 10 customers now represent as much as 80 percent of sales-more, in many cases."Our take:
Digital signage, shopper marketing, retail media, package design, merchandising... they're all going to gain huge ground in the coming year or two due to the lack of results that the major media are producing these days. Further, consumers who might be wary of TV commercials may be more likely to look for deals inside the store, since the opportunity to save every last dollar will be high on their priority lists in 2009.
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Janiak said retailers who stay the course and ignore investments in strategic IT programs will not be equipped to lure consumers who are both seeking value and information.
For instance, even as retailers slow their hiring, they can still train workers to provide a better shopping experience, she said.
"Even though you may be reducing your workforce today, you must invest to ensure that those who remain are well-equipped to continue with customer centricity and deliver that desired shopping experience," Janiak said.
Our take:
Our understanding is that retailers will still readily spend money on things -- whether technological or not -- that can help them reduce costs by increasing efficiency. However, things that are primarily designed to boost sales will be the first to be put on hold when budgets get tightened. Thus, while Deloitte's overall notion that spending should increase might correctly be the best way to help retailers survive, equally important is what they're going to be spending that money on.
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Consumers are more frequently basing their buying decisions on information gleaned from shopping Web sites, blogs, and social networking sites. At the same time, local and national television news broadcasts are losing their clout with consumers, the study found.Our take:
Not only are people using commercial shopping sites more - the figure has more than doubled since its 2006 study - but they are turning these into places to gather information from peers. Of those who visit shopping sites, 44% said they read consumer reviews and comments posted there, according to the "2008 US Media Myths & Realities" survey.
Bloggers of the world unite! As millenials would have told you for the past several years now, nobody makes a big purchase these days without not only doing "high-level" online research like reading manufacturer's web sites and checking prices, but also checking individual reviews for products from big retailers like Amazon.com as well as feedback sites like ePinions. However, the recent economic slowdown has made this kind of pre-shopping more important for a larger portion of the population too. Pre-shopping is no longer the domain of the young. Now, everybody that wants to save a buck or two must do the extra reserarch online, and that now includes reading personal blog reviews, and checking with the wisdom of the masses via social networking sites like Facebook and even Twitter.
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In the Sainsbury’s in Hatch Warren, Basingstoke, south-west of London, it takes a while for the mind to get into a shopping mode. This is why the area immediately inside the entrance of a supermarket is known as the “decompression zone”. People need to slow down and take stock of the surroundings, even if they are regulars. In sales terms this area is a bit of a loss, so it tends to be used more for promotion. Even the multi-packs of beer piled up here are designed more to hint at bargains within than to be lugged round the aisles. Wal-Mart, the world’s biggest retailer, famously employs “greeters” at the entrance to its stores. Whether or not they boost sales, a friendly welcome is said to cut shoplifting. It is harder to steal from nice people.
Our take:
Read this article. It won't take very long, and it will provide you with some valuable insights into why so many things at retail are done the way they are. While the details may be a bit light weight for professional merchandisers, package designers, CPG marketers and the like, for anyone else just dabbling -- say, during a foray into the retail digital signage industry -- it's a very quick, accurate and useful introduction to the industry. You'll learn about slotting fees, plan-a-grams, dwell zones and a dozen other things quirky and unique to the retail industry that can help make or break a digital signage network (actually, Bill gives seminars about this sort of thing all the time, but you can now read about it for free!)
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These shoppers have the Internet at work, typically hold information-based or office-park jobs, have some college or grad school, and are often making ends meet with two jobs, kids, and pets on a middle or upper-middle-class income.
They have become highly suspicious of many TV ads: in a shoppers survey we did, 78% of them said that ads no longer have enough information they need. So many of them search online for virtually everything. Window shoppers have become "Windows shoppers." They want, in the phrase often attributed to Dragnet's Joe Friday, "just the facts, ma'am."
Of course, there is still a healthy role for big emotional brand appeals and mega-advertising campaigns. For every trend there is a counter trend. But that's not the real new thing in consumer behavior.
A whopping 92% of respondents said they had more confidence in information they seek out online than anything coming from a salesclerk or other source. They believe the information they find, not in the information that is spoon-fed to them, and the vast number of clicks today prove that they really are devoting time and energy to ferreting out detailed info before they buy.
Our take:
The WSJ findings correlate well with Miller Zell's own survey results, as was covered on the WireSpring blog just last week. More consumers are willing to put time and effort into research and web-based price comparisons in order to save a few dollars when making a purchase. While the article doesn't indicate whether or not all of this online research will lead to more online sales at the expense of the bricks-and-mortar stores, that result certainly does seem possible, if not likely.
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Our take:
Expect to see more mergers, acquisitions and other consolidations during the remainder of this recession. As if the digital signage industry wasn't fragmented enough, the lack of access to capital, reduction of equity in companies and general difficulty to do new business will force more companies to find creative ways to make it through these tougher times. However, that will most likely turn out to be a good thing for the industry, as we emerge from the recession with a more streamlined group of better qualified and more financially stable competitors.
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ActiVia AM—the audience measurement module—uses simple, inexpensive USB cameras to provide consumer impression metrics, including unique consumer impressions, dwell time, impressions per merchandised object, impressions by time of day, impressions by brand or category, as well as basic consumer demographics. Later this year the ActiVia AM module will be enhanced with advanced consumer demographics, which will enable dynamic message selection on the digital sign and the ability to vary content based on viewer characteristics including gender, ethnicity and banded age group. At all times, consumer privacy is protected as consumer images are not stored by the system.
Our take:
We're not legal experts, but we think there's a reasonable possibility that offering people different deals based on their ethnicity might be illegal, or at very least violate some FTC guidelines. Whether that extends to merely showing one offer versus another remains to be seen -- it WILL be seen eventually though.
This kind of measurement system, once it becomes both effective and affordable, will likely not be restricted to digital signs and other assets that can be modified based on feedback. Expect to see all sorts of consumption habits measured as you walk through private and semi-public spaces like stores and malls.
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Accommodating consumer preferences for self-service fueled by e-commerce trends, the kiosk demonstration includes features that match the perks of Internet shopping, such as suggestive selling real-time inventory access, as well as showing promotions, product details and customer reviews. These features, in turn, facilitate sales associate up-selling and cross-selling opportunities, which will increase a retailer's bottom line and customer loyalty.
Our take:
While having a kiosk or POS terminal that can do double-duty as a digital signage player is nothing new, Intel's decision to highlight the power savings of their system highlights the importance that efficiency and environmental-friendliness play in today's marketplace.
While up-front costs can certainly hinder digital signage rollouts, ongoing costs easily outpace them in a 3-5 year planning horizon. Consequently, it's unlikely that any approach that focuses on up-front tech costs -- as Intel's does largely -- will make a significant impact on the market.
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- Show videos, pictures, news updates, web pages, and live TV in a number of full-screen and multi-zone screen layouts
- Create great-looking content with our built-in templates -- no graphics skills required
- Update your content from a web browser -- perfect for time-sensitive messages and promotions
- No recurring maintenance or hosting fees, and no expensive servers or authoring tools to buy
- And very soon now we'll have a free, web-based trial system set up, which means that you can check out both the management system and see what a real, live screen looks out without having to install any software at all.
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Expected to run throughout 2009, the campaign will also include radio, print, online, and outdoor advertising, in addition to in-store point-of-purchase, special events, sports marketing, and other online marketing initiatives.
Created by Interpublic Group’s Boston-based Hill Holliday, Dunkin’ Donuts’ newest iteration of the “America Runs on Dunkin’” campaign offers encouragement in a spirit of fun during challenging times.
With “Kin’ Do” literally part of the Canton, Massachusetts-based Dunkin’ Donuts name, the campaign reminds Americans that they can take on any task: “you kin’ make it through the workday, you kin’ shovel out that driveway, you kin’ pass that exam, you kin’ finish that paperwork.”
The “You Kin’ Do It” campaign will feature Dunkin’ Donuts’ core products of coffee and donuts and other baked goods, as well as the brand’s new DDSMART menu of better-for-you foods and beverages.
Our take:
Dunkin's campaign is taking to outdoor -- and alternative outdoor -- media aggressively, as a large part of their client base simply comes in off of the street. The strategy of facing the recession head-on is also interesting, as many who sell into the same shopper base as Dunkin' have instead opted to focus on value and price savings as a way to encourage beleaguered shoppers to part with some of their hard-earned cash.
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[T]he way people approach grocery checkout tends to vary greatly.Our take:Some people push the whole cart straight through and toss the goodies forward onto the counter, while others deliberately step up front and pull the wire basket through and unload onto the conveyer.
Most of you pull
The majority of people are, in fact, pullers, with almost three-fourths (74%) of those surveyed saying they pull into the lane. And contrary to what Relevation researchers hypothesized, men and women are equally likely to be pullers.So what? Well, while it may only seem to be a simple and interesting insight into human behavior, it could actually mean a lot to the grocery stores, retailers and marketers that make significant sales by marketing to people who might not be, in fact, pushing their carts through the lane at the front of the store. Could all that in-store marketing be, well, backward?
We've seen this on a number of occasions while scouting checkout channel digital signage installations. While the vast majority of people seem to approach the checkout line pushing the cart, once they get into the aisle itself, a very large number (74% according to the above research) turn around and then pull the cart in behind them. While this may or may not make for easier unloading of the cart, it does mean that all of the POP and digital displays facing forward can't be seen by the shopper.
Whether or not this has any real impact on the efficacy of said POP and digital displays remains to be seen. But common sense suggests that it should.
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Using a cartoon (in the tradition of Schoolhouse Rock), Robert Krulwich artfully explained why retail price wars threaten to deepen the recession.
Our take:
While the theory is controversial, the underlying theory is sound. Whether you think you agree or not with the premise, the cartoon is definitely worth watching. It's a quick introduction to the concept of deflation, and why it causes lots of problems for the economy.
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Walmart is withdrawing from the consortium of retailers, packaged-goods manufacturers and agencies supporting the PRISM in-store media measurement service, the Nielsen Co. disclosed Tuesday.Our take:
Nielsen said it will continue work on PRISM (an acronym for Pioneering Research for an In-Store Metric), which is expected to introduce a complete metric in 2009. However, the departure of its largest founding member is a setback for the project, one of several high-profile initiatives working in parallel to create new metrics for out-of-home
While there is a healthy amount of speculation on the net about why Walmart has decided not to continue with the PRISM program, the theories generally fall into one of three main categories:
1. Per the party line, Walmart had to suspend its internal policies about data sharing to participate, and said suspension was deemed not worth it.
2. Walmart's participation was initiated by now-ousted marketing honcho Julie Roehm, and Walmart execs wanted to remove every last trace of her influence.
3. Walmart no longer needs Nielsen's help now that they have their own internal measurement system from DS-IQ up and running.
WireSpring believes that all three of these are perfectly viable options, but our money is on #3 for the win.
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Bejing-based flat-screen advertiser Good Media took over its fitness-center advertising competitor Sports Media, formerly owned by Focus Media (Nasdaq:FMCN), on January 5, reports 21st Century Business Herald. Sports Media officially ended its agreement with Focus Media on December 16 and signed with Good Media on December 31, said the report. Ding Bingwen, former Sports Media president and new Good Media chief operating officer and board member, said Focus and Sports Media split over lack of profit guarantees. Details on the deal were not disclosed.Our take:
Focus Media neither confirmed nor denied the news Monday, but said Sports Media is only a small portion of its business. Former Focus Media subsidiary Framedia announced its acquisition of Beijing-based Sports Media in April 2008.
Focus was once the digital signage darling of the NASDAQ, but run-ins with the Chinese government over unsolicited text messaging (another unit of their company) started a slide that has ended with their stock down something like 70% on the year.
While Sports Media may only have been a "small portion of its business," Focus can't deny that it was part of the firm's money-making digital signage operations, and as such should have been core to their operations. It remains to be seen whether this announcement will have any effect on the firm's current operations, or on their plans to get acquired/merged with another company.
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Staples Inc. is putting a heavy focus on in-store marketing in 2009 via a multiyear deal with consumer marketing company News America Marketing, according to Brandweek.com. Through the partnership, News America will design coupon machines, shelf messaging, floor ads and sampling programs in more than 1,500 Staples stores nationwide. The in-store media will launch this month. News America Marketing had traditionally focused on the supermarket, drug and mass merchandise segment, but already has an existing partnership with many of Staples' manufacturers, said Chris Mixson, president of News America. Later this month, Staples stores will carry electronic coupon dispensers and at-shelf video units. Other innovations in the works include a SmartSource Xpress program, which is a "clipless solution to the FSI," Mixson said.Our take:
Staples has been an innovator in the office supply category for some time, and has had notable success with its in-store product line extension kiosks (which some believe is because of their unique approach to employee training with the devices). But while the recession continues, it will be important to watch whether their enthusiasm for spending on in-store marketing and merchandising remains high, or if they decide that the safer bet is to sit on their cash (or not raise more debt, depending on their cash situation).
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Our take:
Nielsen might blame this problem on the economic downturn, but in reality there were just too few buyers for their data to begin with. Even with an aggressive growth rate of 20% for the digital signage industry there likely wouldn't be enough buyers to support their efforts for a number of years. Now that marketers are tightening their belts even more, Nielsen probably figures that the time to ROI is too far out, and they have better ways to spend (or not spend) their money.
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