DSE: Digital Signage Expo

Chris Borek
Senior Manager, In-store Digital Marketing
Target

If a company was considering the deployment of a digital signage network and was preparing to justify the investment, I would encourage them to be clear on 3 areas: their objectives of the initiative, establishing clear metrics to measure those objectives / determine success, and gauging interest from potential advertisers (assuming an objective is to promote products / services running ads).

Objectives must be clear and agreed upon by all stakeholders. If a 3rd party is executing a network, the client must be bought in and determine the purpose of the project – sales lift, producing lots of ad revenue, communicating messages to shoppers and associates, etc. Having metrics to effectively measure those objectives is just as critical. Again, all stakeholders must be in agreement on what those measurements are and how you are going to determine results. If one of the objectives is to sell air time, it is advised to consult with potential advertisers to make sure the metrics meet their expectations as they look at investing in your network.

Finally, (assuming the generation of ad revenue is an objective), hold informational sessions with potential advertisers to share your strategy and objectives as well as the measurement process. Is this something they would consider buying space on? Are there things they could bring up that you might not have considered? Hold these meetings fairly early in the project so you don’t find yourself trying to make changes at the 11th hour right before deployment. Also look at what else is in the market. Are there other digital signage networks you can learn from (what to do or what to avoid)? Glean best practices from others as well as from seminars and conferences. People are willing to share some details, especially costly mistakes that might save you time and money.

Jason Feldman
Senior Director, New Concept Development
Home Depot

The business case makes no sense unless you put it into a live environment and test it. We have made the commitment on multiple technologies to "try before we buy" and let our customers vote with their wallet. Sales comparisons against control stores prove the case one way or another. It's hard to ignore the power of real results.

Mike Hiatt
Director, In-Store Media Networks
Wal-Mart

One must be able to justify the investment in terms of measurable value to the retailer. Selling advertising is not enough in most cases. What will the digital signage system do for the retailer? And by extension, how does it help the shopper or the shopping experience? Identify savings from other groups at the retailer, for example, the elimination of specific physical signage packages within the store. Retail executives will boil down nearly any capital investment in terms of improving either the top-line or the bottom-line of the business. Pick one and build your model around improving one or both of those financial lines.

Kevin Culp
Director, Information Technology
Gaylord Entertainment 

For the hospitality industry I would advise the business to look at the whole picture. There are so many uses for digital signage but most businesses only “see” a small part of what it can do. For my particular business it is being sold as more than just a way to advertise what is for dinner. Executive management have been exposed to some very creative uses for the technology such as interactive way finding, emergency notification system and the replacement of traditional static signage. In this industry a solid ROI model is difficult to produce. Part of the model is to include the revenue that could be generated from the customers wanting exposure for their event/show. This is beginning to be a popular model. Signage is beginning to be as important as telecom and data services. The next part of selling digital signage has nothing to do directly with an ROI model. It is customer satisfaction. In large convention hospitality properties the complaint is often I cannot find my way. Though a direct ROI correlation may be difficult, the bet is that happy customers will continue to return to your business and continue to spend money which will get the attention of executive management. In summary for the hospitality industry the focus should be steered away from the traditional ROI model and focused more on your customer’s experience.

David Lusteaux
Director, e-marketing Solutions
Hilton Grand Vacations

I would advise the business seriously to invest in digital signage by comparing the cost of printing and the cost of investing in digital signage. The advantage of digital signage is there is no cost on updating content unless regular signage needs to spend money on printing for update.

Live new content provided directly to the location through internet is the key of digital signage. A digital signage board in comparison to a printed board generates more revenue since the first one could change content constantly. The price of technology has decreased considerably since the past 6 years. I remember to buy my first 60” plasma for the company 6 years ago and spend around $ 21,000 and now you can buy a better screen same size for a quarter of the price listed six years ago.

Bruce Wolf
Portfolio Manager IT New Building
Royal Caribbean International

My advice is to approach the concept by first finding a preferred vendor that will provide the type of solution you are looking to deploy. Have a concept in mind and then present the concept to the management team. Propose a phased approach that incorporates small proof of concepts along the way. This roadmap approach should allow you to prove your concept and give the management a true life test of the technology. This also provides the ability to analyze and test using focus groups. The steps are:

A. Develop High Level Concept
B. Create a Roadmap with Proof of Concept deliverables
C. Gather Data and Lessons Learned
D. Communicate findings
E. Start small and build on the concept
F. Consider integration plan and how content will be managed and created
G. Define Process Organizational Chart
H. Stage and Deploy

John Armiger
SVP, Marketing Development
Wyndham Vacation Ownership

The question was raised at the conference whether Digital Signage was intended to increase brand awareness or to increase sales. I believe it is definitely intended to increase sales. Therefore, In-Store Media needs to be tied directly to print and media based promotional campaigns with a call to action. Comparison studies can be made between promotional campaigns with and without the In-Store Media component. By setting up controlled test with careful monitoring of the data collection from the test, I believe it is possible to quantify the results to present to management for the cost justification.

In our situation, we are introducing interactive touch screen kiosks to replace an existing paper based lead generation system. The results can be quantified very easily by measuring the increase in participation, accuracy and speed to market. However; the cost justification must also take into account the increased cost of equipment and infrastructure to maintain and deploy the equipment.

Jane Stricker
Market Innovation Manager
BP America 

Within the gas station/c-store industry, determining the most appropriate funding/investment strategy to deploy a digital signage network can be quite challenging, as many of the locations are owned and operated by independent dealers.

My suggestion would be to first clearly define the strategy for the digital signage network. You need to know what you want the program to do for your business in order to substantiate the investment. For example, is the program being developed in order to generate additional store sales, create a brand experience, eliminate existing static signs, or generate advertising revenue, or some combination?

The second step is then to demonstrate how this investment in digital signage can deliver the clearly defined benefits. Some key information that will help substantiate the investment includes:
• Providing consumer research results from any early testing/pilot programs
• Sharing proven results or success stories from similar businesses that have made an investment in digital signage
• Using “realistic” assumptions about the expected costs, revenues, and business workload that this digital signage deployment will generate.
• Being realistic about the expected life of the digital network and how you will be able to evolve it as the technology continues to improve and change. If the ROI on the proposed investment is longer than the expected life of the equipment, it is not likely to get funding.

Finally, bring in expert support to help develop the digital signage strategy and business model. There are some great people who have been in this industry since very early days, have seen both successful and unsuccessful digital signage deployments and can help you to avoid common pitfalls or mistakes in developing your digital signage strategy. These industry experts are a great resource to help you understand (early in the planning process) whether the goals of the program are realistic, what funding options may exist, what has worked in the past for similar companies, and the trends for the future.

Steven L. Griffes
Staff Head, Global Broadcast Center
General Motors

My best advise is to tie the signage program to a core business need. Employee communications, Employee satisfaction, or even Customer Satisfaction indexes must show improved results for any digital signage system to be successful. The more you can associate your program with these initiatives, the better chance you will have on getting senior leadership buy-in. I would also suggest the need to be cross disciplined in promotion and use of the system. The more you involve IS&S, Communications, and HR are involved, the more potential messages you will have, along with making your signage product key in their strategic message planning for future use and communications.

It’s easy to find information over the first couple of months, the key to long term success is the re-use of existing assets from different areas on a regular basis. Messaging and format both need to change enough so when people come to your system they get relevant and timely information. Don’t underestimate the need to promote “how- to” post messages, or even make templates that local users can create their own message. The value of smile messages (blowing scores to congratulation messages) lets local viewers feel they are a part of the system.

In summary, digital signage needs to be tied to key initiatives which show results which are tracked by organizational core groups. Assets must be re useable and local viewers need a method to share their messages.

Pat Helberg
Director, Brand Design Media Group
Nike 

The absolute first question that a company looking to justify the cost of a digital signage installation must answer is: What is the mission of your program? Until they can clearly explain what they want their program to accomplish, i.e., lift sales, sell ads, enhance the brand, inform or entertain the shopper, decrease perceived wait times, etc., they have no business going to the effort and expense required to initiate a digital signage effort. If and when they can define the mission, then the company can create a realistic budget, estimate what it will cost to start and run the program for at least a year or two, and determine whether that investment can be justified through either increased sales, brand enhancement or any other relevant measurable. The key thing is for the company to create a clear road map and a desired destination. It’s like anything else: if you don’t know where you’re going, how will you know when you get there?

Jerry Harris
Director, Audio Visual Services
Georgia Aquarium 

The short answer is that a case can be made on the return on investment (ROI). To further expand on this you should develop a detailed outline of the step by step process from equipment acquisition, to installation, to marketing and selling.

While the ROI is important, your management team may question whether or not to introduce external advertising at your facility. Though the added revenue will further sustain the decision to implement your digital signage solution. However, in the museum industry there should always be a balance between guest information and advertising. Maintaining this delicate balance is important so that your visitors are not overwhelmed with advertisements yet informed about your organizations services.

The people resource is your most important commodity. To reduce your on-going cost you should seek multiple skill sets within the organization. These individuals should possess skills ranging from installing equipment, to designing ads and content. If your organization is small it must establish good relations with vendors. This will compensate for potential lack of inner-office brain-trust.

Finally, your organizations decision to implement digital signage will be a good return on investment. Conduct research in your respective industry. Understand some of the hurdles other facilities have overcome. Pay close attention to those hurdles. Understanding there are new hurdles that you may encounter. Anticipate them and be prepared to act accordingly.

Jack Sullivan
SVP/Out of Home Media Director
StarCom Worldwide

The newer decision makers growing up and entering the marketing world are use to new ways to being talked to. They consume their media differently than the past generation. If you want to stay current you need to have digital screens for a few purposes (some would apply and some wouldn't depending upon your audience) present the latest info on the product that you offer to your customers, real time sales ... day to day sales, music and content to keep customer in store, suggest things that are coming soon to entice for future visit to store, maintain being one step ahead of your competitors, etc. I'd also suggest to management a model by where you'd be able to get additional revenue from the ad space on the screen. That could be done either by selling the time yourself or by finding an aggregator of digital signs and using them as your sales arm to other noncompetitive advertisers.

Warren Harmon
Head of Section, Media Support Services
Mayo Clinic

At Mayo Clinic we have multiple digital signage venues because we ask all of our customers or proponents two very important questions: First, do you have the quality of messages to support the digital signage media channel? Second, do you have the staffing resources to ensure dynamic and Mayo mission-centric messages. It's all about having the right message.

We are all about target audiences, whether they are our staff or our patients. Our signage delivers to both wide and narrow Mayo staff audiences where they work or gather. Our digital signage solution is regarded as just one media channel to distribute messages, not the only one. Digital signage must compliment our existing web and print activities, but most importantly it must address a communication and/or education need. Our ROI is proof of consistent employee behavior and understanding of our Mayo mission to serve our patients.

George Nauman
Partner/CMO
Chute Gerdeman Retail

We recommend building financial model one step at a time…meaning selecting a location or small group of stores to test the effectiveness of digital media. It is always best to utilize exiting stores with sales history to compare the effect of digital signage on consumer behavior. The other key criteria is make sure management understands all the ways you are testing and quantifying the benefit of digital signage beyond just increased sales (obviously that’s the most important) but other key attributes in changing consumer shopping experiences can be just as valuable (e.g., dwell time - real and perceived, awareness of additional services not apparent in the shopping process, add-on sales, prompt the use of the internet to shop for additional products/services after they have left the store, education for both associates and customers, etc). We believe using a wider net of issues to justify the success of digital signage is the key to achieving management buy-in.

Margot Myers
Manager, Retail In-Store Programs 
US Postal Service 

• Build the right team. Get a cross-functional group involved from the beginning so they're invested in the success of the network.
• Develop metrics. Pick things that are consistent with organizational objectives and will make a difference when you report results. In our case that was: revenue life; wait time in line; customer satisfaction; and shifting customers from full-service to alternate access channels
• Start with a pilot in a small number of sites. Use data to pick the sites, not just ones that volunteer or are near HQ. Our site selection criteria included: geographically dispersed markets; lower-than-average customer satisfaction scores; underserved markets; high concentration/availability of alternate access channels; below-average revenue of products and services that would be promoted on digital signage; higher-than-average wait time in line. (If you just go into stores where everything is already good, it's hard to show any improvement.)
• Do research. Pre, during and post-test to show that you moved the rock.
• Do one-to-one and group "sales pitches" to get the right people to know what you're doing, why, and what your early results are. Sometimes, even when you do all that, you still can't get the funding. That's what happened to me. But I still think it was a good approach. The Postal Service isn't typical of private-sector companies.

Christopher Burtt
Global Signage Production Manager 
Reuters 

For Reuters, investment in digital signage is done primarily for marketing purposes. Funding was achieved through various methods:
-Emphasize benefits of digital signage over other forms of marketing
-Conduct pilot program so executives can see the live product and gather feedback from viewers. Place signs where visible to decision makers.
-Create metric for tracking success (I used screen viewership, although it is only estimation)
-Allow for funding to come from multiple sources (we have central funding, or local groups can fund screens also using the standard kit)
-Create white paper on digital signage to be distributed throughout organization

Jeff White
Owner and CEO
Bar Channel

This question was at the top of our list when we sat down to come up with our own business plan. We were going to create a network of restaurants and bars and needed to predetermine how we were going to pay for the installation of the equipment. Digital Signage is still new to many advertisers, clients and management. They have a hared time seeing the value. Especially in hospitality which is our market. Digital signage does not attract new customers. It speaks to the ones already in the building. This is the problem, but also the solution. If the restaurant/bar can sell just one more coffee/dessert/beverage or 5-shirt, then it’s a win.

That meant creating our network to allow individual restaurants to run their own ads was key. We had to hire a creative department to work with the clients and make it simple to create full color ads with pictures. In doing so, we have now proven that we can get “additional sales” through great visuals. Imagine if your restaurant has 500 guests a week and if you sell half of them an incremental $3 dessert, sales are going to be up $750 a week. That’s certainly worth the investment.

We use the same approach with the beer and spirits companies to explain why they should advertise on the Bar Channel. If they sell just one more beer at all 80 of our current locations each day, then it’s easy for them to see the sales lift. Our other big breakthrough was working with advertisers and having them pay for the equipment installations in exchange for advertising time and in some cases exclusivity, making the system free to the end-user. Additional sales and up-selling are terms that management loves to hear. That’s the big ticket to getting their buy-in.

Tom Lapcevic
President 
ClubCom 

ClubCom constructs and operates digital media networks for the health club and bowling industries. Typically, we outline three categorical value propositions when presenting to prospective venue partners. First, we define how our networks can enhance the experience of their customers through entertainment, education and inspiration. This is accomplished by matching each communication with the audience through proper day parting and demographic profiling.

Second, we demonstrate and substantiate how digital media can provide a more efficient and effective way for our venue partners to communicate with their customers. In the case of health clubs and bowling centers, our marketing specialists research each type of communication (e.g., promoting personal training, nutritional programming, etc.) to determine the best way of promoting the given subject matter. We use various forms of research studies and financial tracking methodologies to demonstrate the effectiveness of the digital communications and how this medium lowers overall marketing costs by reducing the costs associated with traditional mediums (e.g., poster boards, print handouts, etc.).

Finally, we define how our digital mediums can be used to generate revenues secured from third parties, provided such initiatives don’t hinder the viewer experience or the business initiatives of the venue partners. For example, the promotion of a tobacco product within a health club facility is inconsistent with the overall experience and image of the health club organization whereas the promotion of a luxury vehicle or a new sports technology enhances the experience.
Mike Quinn, PRN
In our experience, there are two streams of revenue that help support investments in Digital Signage. The first is fees from the venue owner and the second is fees to advertisers and /or other third parties. In order to justify a capital investment to management, it is important to be able to quantify these revenue streams. Usually this quantification comes from negotiations with the venue operator based on an initial pilot of usually 10 to 50 pilot stores. In addition, discussions with potential advertisers are also important and are usually centered around the “critical mass” required by the advertiser. This discussion usually centers on the size of the audience and the desirability of the audiences demographic and psychographic profile. Then, data gleaned from retailer pilots is often used to substantial the engagement of those audiences.

Mike Quinn
Senior Vice President Marketing
Premier Retail Networks (PRN)

In our experience, there are two streams of revenue that help support investments in Digital Signage. The first if fees from the venue owner, the second is fees to advertisers and / or other third parties. In order to justify a capital investment to management, it is important to be able to quantify these revenue streams. Usually this quantification comes from negotiations with the venue operator based on an initial pilot of usually 10 to 50 pilot stores. In addition, discussions with potential advertisers are also important and are usually centered around the “critical mass” required by the advertiser. This discussion usually centers on the size of the audience and the desirability of the audiences demographic and psychographic profile. In addition, data gleaned from retailer pilots is often used to substantial the engagement of those audiences.