Posts filed under ‘Future of Out Of Home’
Out of home Minority Report
I love flicks! But when I see movies that are relevant to my experiences and knowledge, I love’em even more! I’m sure many of you have already seen Crazy Tom’s movie, the “Minority Report.” During several parts of the movie, there were so many examples of where Digital Signage, Out of Home / Digital Out-of-Home, and Retail / Customer Service could be heading in the future, so I thought I would aggregate those parts for your viewing pleasure. Also allow me to apologize to Bill Gerba of WireSpring in advance; I know your stance on “Consumer Privacy” very well Bill! Just posting; don’t go crazy on me on Tweeter. Anyway, here it is, Enjoy!
Future of ID Theft
Get your Italian to English Dictionary
Is your Digital Signage Out-of-Home Ad Network Getting Ignored?
You finally made contact with the CTOs, CEO, and COOs at the franchise. You prepared your pitch for weeks and convince them of the potentials that an Digital Out-of-Home Network can offer. The franchise finally (and thankfully) signs on with your plan. You do the pre-installation site surveys. Audio or No audio? You align all the asset / equipment and companies that are needed to develop a DOOH network. You put your project manager hat on and start building out the network and media assets. You test; you troubleshoot, then repeat again. Test locations seem to work OK now, so here comes the rapid deployment of the entire network. After countless hours of planning, communicating, and installing; you have Finally built the foundation of a Digital Signage Network! You now work on the sales process so you can get brands to buy into the network, including getting research and data, developing and implementing media planning / proof of delivery tools, sales collateral, sales training, and connecting / selling with feverish excitement. This is just the dawn of an advertising Digital Signage Network, and indeed; it is a LOT of work with many individuals, companies, and decision involved. But it was all worth it becausee now you have a network with thousands of locations nationwide, which certainly guarantees millions of impressions a month, especially because third party research has found out that media asset placement, dwell time and foot traffic all resulted as favorable. The result are exactly what you, and more imporantly, what the brands and agencies wanted to hear. You went over the budget a bit, but it’s okay because you have a great network in place now. That was a tough and stressful couple of months, but it was all worth it, and the work is now Done!… OR IS IT?
As some of you out there know, I seen this process in real life several times over. And from what I’ve seen with many of the DOOH networks is that critical importance of Quality of Conent and Scheduling seems to take a backseat to the processes and priorities in the 1st paragraph. Is there usually a REAL budget set aside just dedicated to making quality and engaging content? Many may claim so, but honestly ask this question… Setting up a DOOH network is quite expensive and there is no way around this, but all the locations and screen in the world won’t matter if you are not able to capture the attention of the consumers that you are suppose to be target, and this is where the art and science of marketing / advertising comes in. Between the blogs and tweeter conversations I have followed; I have heard many things. “Repurposing TV ad creatives for DOOH networks,” “you have 7 seconds to engage the consumer from a DOOH screen,” “quality of content is still lacking,” so on and so on. This is the “beating of a dead horse” as many experienced professionals in the Out-of-Home and Digital Out-of-Home spaces have raise the importance of quality content over and over again, but the message still does not seem to get through in numerous cases. Some solution seems to be increasing interactivity, integration of mobile & printed point of purchase materials, making creatives more concise, which all seem to result in more effective campaigns. Yet many still seem to be satisfied with the simplest options of strategizing, planning, and programming; a 24 hour loop with repurposed spot here and there, then call it a “campaign”… What should be emphasized; at least on the ad side of the biz, and one of the prevailing theme of justoutofhome.com is the importance of “Integration;” meaning All creatives, including medias outside the OOH /DOOH space, ALL working together to communicate an effective message to the targeted demographic(s). In order to reach this effectiveness on the OOH / DOOH / Ad spaces, there are No other option than to 1) develop quality content and programming, so consumers will actually watch with interest, and 2) improved development of ad creatives that are solely targeted for these spaces. A simple example: “A text this number to win such and such” message on the screens and POP materials, in conjuction with a Mobile / Online /Social campaign setups is likely to engange the consumers more effectively compared to the 30 second spot or a “freeze framed” poster of the spot that the consumers see on the TVs at their home. Repurposing is, simply put, boring, lacks creativity and engagement.
On the network provider side, the simple question is: would you watch a TV channel that is playing the same shows, content, and ads over and over when you get home from work? The answer is like to be “No.” So why are so many networks running their content in this way, when they would never watch such a channel at their own homes? Are network and their content / scheduling established to engage the consumers, or just something for them to kill some time while they are waiting to pay? To gain eveb more insights; just talk to some of the employees at stores with DOOH networks; especially ones with audio. Many will tell you that the repeatitive programming is distracting, and in some cases, drives them absolutely Mad! Beating the same content over and over again into their heads is a sure way to drive someone “postal,” and also a sure way to get your DOOH / OOH network and ads ignored.
Quality of content and programming seems to be something that the industry(ies) as a whole still needs to improve on and pay attention to more. As companies / production houses that are solely dedicated and focused on these issues crop up more, the issue of ”qualtity” will be less so, and I do see this coming soon. But as a “whole” are we there yet, or even close? I look forward to some thoughts. With the Digital Signage Expo coming up at the end of this month, maybe the companies that are focusing on develpoing quality content need to be paid attention to a bit more than the previous years.
Now this “dead horse” is dust!
Digital Out-of-Home: JCDecaux + JWT + Interactivity + Mobile = Real Impressions
Staying on the theme of Out-of-Home media in the subways; here is an example of what I truly see as effective DOOH. Readers of Justoutofhome.com know I love the convergence of interactivity and mobile with digital Out of Home media, and here is the prime example of what is possible with a little effort in strategic media planning / conception. This is just sweet!; or should I say, “sweet and sour”! Those JTW people sure are good!
The Current Reality of Advertising in Out of home & Digital Signage
In the past week, it has been my pleasure and honor to read and take in two particular articles that hit straight home, especially considering my background and expertise in these sectors. These articles were Digital Signage Universe’s If You’re Not on the Plan, You’re Not in the Buy & When Will Advertising Agencies Understand Digital Out-of-Home? written by Wirespring’s Pat Hellberg.
Why did they hit so home for me? I have seen and dealt with the realities discussed in these articles everyday at my previous position. I struggled to think about where the core of all the issues lie for several days since I have read them (several times no less) and I finally believe it’s all connected to the simple theory of “DEMAND.”
“Demand” is a funny thing in the advertising and media industries. It can make a media the next “new” and “hot” thing in the media world with a “flick of a switch,” and all of a sudden, everyone is suddenly clamoring to learn and implement strategies and concepts attached to the media. When the “heat index” is up, there is less regard for whether a particular media has matured to the point where the core principles and goals of advertising & marketing are in place; issues such as “measurability,” effectiveness of reach, relevancy, and, yes, Return On Investment. With a few articles, press coverage, and some big early-adaptor ad buys /investments; the belief of “we Must include this media in our strategies and plans, because such and such are using this media right now, and if we don’t do the same; we will deemed less competitive or innovative…” starts to spread like a virus very quickly. In the past decade, we have seen this in the Online media sector, where the phenomenon I speak of occurred. But Online media may not be the best comparison, as the nature of the media and technologies with in that space aligned with the general principles and goal advertising and marketing very effectively and quickly. Simply put, I have yet to see a media that is as measurable and justifiable as Online media. Online media is so sophisticated that it has gotten to a point where people can actually even show “heat maps” in terms of determining what parts of the screen viewers are Really looking at, amongst other methods. From this, some may say, “well, I’m sold!, I’m gonna just dump all my efforts and budgets into the Online space, and call it a day..” If you say this; let me be very clear; You have NO business being in the fields of branding, marketing or advertising whether you are just starting out or have been in the industry for decades. I personally still see some flaws in Online media. Measurable and accountable? Certainly. The “end game”? Certainly not. In this sense, it’s all about intelligent budget allocation; not just focusing on a few “flavor of the week” medias.
I haven’t wrote for a long time, but I have stated my personal belief in what I do couple of times, and it is my general principle and belief that “effective branding and advertising strategies / plans requires an Integrated approach in both the decision-maker / client-sides, as well as on the agency / media deliverer-sides.” My career might be fairly short so far, but I worked everyday with this principle in mind and I don’t know anything else. In this sense, I definitely see Out-of-home and Digital Out-of-home as viable medias to be included in a lot of strategies and plans. Has it matured fully?, especially compared to medias such as Broadcast Television (which may be Overtly matured), or Online (which still has much to innovate and grow)? The simple / quick answer is “No.”
2008, as both the articles touched on, was a period of great evolution for the Out-of-home, and especially, the Digital Out-of-home industry. I know, I know; some companies have been around for decades, and been “leaders” for a long time; a term that seems to be used very loosely in most advertising / media / content delivery industries, as the David Haynes of Sixteen:Nine pointed out. But from what I know; and please correct me if I’m wrong, there has never been such a period as 2008 where so many different organizations within these industries decided to work together to tackle all the issues connected to the industry(ies). If this is so, then it is obvious that maturation as an industry is yet to be here, and as we all know; “Rome was not built in a day…,” or even a year. On the positive side, “why all this activity then?” We go back to the theory of “demand.” It is because there is “demand” that decision-makers are starting to see the relevance of the media and the right questions are being asked. It is also why there is such a feverish attempt these days at answering and resolving these questions; not just as a company, but as an industry.
So why does it seem that brands and agencies aren’t stampeding to Out of home and Digital Out of home right now? Well, I guess it’s partly reality, and partly just bad luck. In an incredibly challenging economy, marketing / advertising budgets tend to be the first to get cut. I discussed this issue with Jon at Bonita Media, and let me state another belief of mine, which is “A bad economy is the Perfect time to actually raise the marketing / ad budgets.” This is because media costs become highly discounted with everything else around the world. The same budget in a good economy can take you a Lot further in a bad economy, so imagine if brand can even increase its budget. This gives brands and advertisers an excellent opportunity to try new and different strategies that they may have been shying away from during the good times, as well as separate themselves from the competition to gain Brand dominance if you are spending, compared to the competitors that are cutting. Unfortunately, I am not in such a high position, although hopefully some day. I digress. The reality is, in a bad economy, budgets for new and emerging media are really the first to go, which I believe is the case we have today. But I think it goes even deeper than this. From the Pat’s Wirespring article, I quote the following:
And she doesn’t mince words: “The agencies are lazy,” claims Swartz. “One of the biggest challenges [DOOH] will face is that people will never get fired for buying a 30-second spot.”
Apparently Pat already received some backlash on his article from agencies (I thinking majorly because of this quote), but I think those who took offence are reading into it way too much at face value. Let me be clear; THIS IS MY THOUGHT, and I don’t want to mis-quote or put words in anyone’s mouth, but this is how I took this quote. Let’s not disregard the hard work agencies like OMD, OMG, UMcCann, etc. put in everyday for this industry. I don’t think Ms. Swartz or Pat meant they are actually “lazy,” but rather, at times agencies are scared to take risks. Is this the agencies’ faults? Again, I go back to demand. Let’s not forget that agencies work for the Brands that commission them and have to justify every cent of the media spending. From this perspective, if decision-makers at the Brands themselves don’t know or understand a media, it is that much harder for agencies to recommend such buys. Can the OOH / DOOH ad industries honestly say that all the questions involving effective measurement and reach can be answered conclusively? Many RFPs /presentations may say so, but the reality is, the answer to this is more likely “No,” or at the most, “we are closer than ever before, but not completely there yet.” I think shot myself in the foot with this statement, so let me just leave with this belief on this particular subject. In observing the immense evolution within this industry in just the past year, I would not be surprised; even expect, that a lot of the underlining questions will be answered with research-based confidence during 2009. Brands and advertisers have to understand that there will always be a period of growing pains with any emerging media, but that also does not mean a media should be deemed “un-buyable.” Sony and Disney, two major and steady brands I have had to fortune to work with over the years understands this fact, and look at them; Dominant! I still rarely see brands taking such an intelligent and integrated approach to marketing and branding as Disney and Sony does… Another small point is if a brand deems Social media as viable, but the OOH / DOOH media as not; that just doesn’t make sense, as both medias have similar challenges today.
Another key point that seemed to echo in the articles is the lack of “knowledge” and / or “interest” in the space. Well, what do you expect? There is a “natural” disconnect going on today. The “old school” decision-makers are still focusing on just TV, Print, and Events (traditional media), and also busy with tapping into, or trying to keep up with Online media. The “new school” is mostly all trying to get into the “hot,” and perhaps, the “future” of media that is Online. Someone should do a survey at the Marketing / Advertising departments at universities. If the question was asked, “Which sector of Media are you looking to pursue as a career?” I would bet my NYC apartment that “Out of Home” and / or “Digital Out of Home” would be one of the last on the options / results; if they even know about these industries at all. The youth have an immense power that they may not even realize, which is the ability to “blow up” or make “cool” a product, service, and even an industry. Decision-makers at brands and agencies all have assistants, and these assistants play a large role in serving as the “eye” for the top executives, which is simple fact. Until an industry can attract the young / smart talents to help get the word out, increasing demand will always be a challenge for this, and any other industry. I feel that the ability to recruit and retain future talent is an issue that is not been covered enough in this space, and is a subject that can have a detrimental effect on the overall industry for the long term.
Another key point and quote from the Digital Signage Universe’s article, which deals with the issue of content quality:
The full impact of the digital out-of-home medium is not always fully realized. Campaigns often use repurposed content from traditional media rather than creating content that is specifically tailored to the medium. It takes about 7 seconds to make a connection with a consumer using digital out-of-home media, so repurposing a 30-second TV spot is not going to be as effective.
Simply put, quality and fit of content in the ads / overall Programming, as well of ad sales strategies / media prices that continues to be aligned with the broadcast TV style (this is a conflict because one has matured and been accepted, the other has not..) must improve and there is no way around this. Have you actually seen the content in these networks? Mostly pretty dry and repetitive to say the least so far… I don’t know the solution to this issue, but it is clearly a critical issue attached to the factor of effective engagement.
Last point I want to touch on is about all the options and duplication that brands and agencies have to sort through in the Out-of-home / Digital Out-of-home. Simply put, there is too much in both cases; even in the software and DS supply industries. I am always all for entrepreneurship and innovation; this is what the U.S. and any civilized economy is all about! But, there are So many options (and “leaders”) within these spaces; which is something I recently realized, that it would makes anyone’s head spin. Look at Digital Signage Universe’s “Directory,” and this is just in the DS space. Include all the OOH suppliers, agencies, what have you; there are hundred, perhaps even thousands of options. I mean honestly; how many companies do we need that offers a “health club” or “bar” network, or ad delivery programs, etc..? Less so with the DS suppliers, as that side of the business has a lot of different applications in every day lives and could require different expertise and needs, but this is certainly relevant to the Ad side of the business. Unfortunately, with this current economy, Charles Darwin’s theory of “Natural Selection” will come into play; not only in these spaces, but most other spaces and industries as well. This is something that no one person / company will be able to stop; just a simple reality of life, and certainly, in business. As I write this, I read the news about “Transit TV” going down, which I really saw as one of the networks that made total sense due to its “captive” audience… Just goes to show; these days, it is not a matter of something being better or more innovative than the other… What happens sometimes just doesn’t make sense, but it happens regardless. Looking from the long-term or macro-view on this subject, we know that the thinning out of the industry(ies) is pretty likely this year and maybe even the next few years, but I personally (and so Very very Sorry to say!, but..), and probably from the brands and agencies’ perspectives as well; mergers, acquisitions, and yes, closings, may actually beneficial in the long run for the Out-of-Home / Digital Out-of-Home industries in order to get more focused, reduce the all confusion, and bring about standardization more rapidly.
Let’s call a spade a spade, move away from playing “defense,” and focus that energy on why it is necessary to play “defense.” When the “why” is fully figured out, I truly do believe that the undeniable solutions will come. I believe in all the intelligent and hard working professionals and friends within these industries that I would not expect any less.
The Convergence of the Digital Signage and Kiosk Industries
I personally love all types of technology and media, and when these two factors combine effectively, it can indeed create a powerful medium of communication. Let’s not discuss what the potentials are in terms of digital signage and other out-of-home media in this sense, as if you are read this, it’s pretty much assumed that you know what the potentials are. Instead, I wanted to write about a topic of interactivity.
In early 2008, I ran into a company called Reactable (http://www.reactable.com/), which was the inspiration for this post.
Reactable Systems has been born with the aim of redefining what conventional Human-Computer Interaction means. Why do we have to speak with computers in the same way as 20 years ago? Our mission is to develop interaction technologies and leisure products focused on the developement of creativity and the transmission of culture and knowledge, with a special emphasis on musical creation
For anyone interested in technology or advances in how we are to Interact with media; I’m sure you’ve run into Reactable as well. The thing is, their system was initially designed to make music, and not for anything else really. But when I became aware of Reactable, I immediately saw the potential and application of their product in our industry. Their or similar technologies are already popping up online, in the movies, and conferences. Below is a video that will give a sense of this system.
No matter what type of digital out-of-home network; it is ultimately all about Engaging the audience. All the discussions about the importance of having unique, entertaining, and relevant content are definitely (and finally) going the right way these days. But what about “Interactivity” and the ability to access information, or immediate conversion of the messages’ goals? As I know it, most digital signage networks simply lack the Interactivity component, which in most part makes sense because they are supposed to serve as billboards. In the interactive sense, Kiosk companies have this model down.
So what if display capabilities of Digital Signage, and the interactivity of Kiosks converged?
Maybe we can see this simply as Kiosks with large displays, but I think there may be more than that. These days, there are lots of news about companies merging, and getting acquired (a topic I wish to visit in a later post). Most of these activities seems to revolve around digital signage networks getting bought out by another, or TV syndicates buying up these networks to either create another source of revenue or screens to reach audiences they are missing from the traditional way of broadcasting; rarely do you see a digital signage network merging with a kiosk company. Partnerships, yes; a pure merger of these two types of companies and technologies, not as much.
The last post certainly shows that the industry is starting to go this way. Natural Interaction (http://www.naturalinteraction.org/) is another example of how interaction with media and information is starting to gain momentum.
Does this mean that Signage and Kiosk companies will become hyper-competitive? Not at all… There will always be a place for both industries I think. On the signage side, once the large touch-screen displays become more viable in terms of costs, this will help bring that industry to the next evolution in technologies and creatives.
At the end of the day, the message is; there is a lot that the signage and kiosk industries can learn and benefit from each other and this is a call for both industries to look outside of their own industries, have a vision, and entertain the possibilities that can result from working closer together, whether they are partnerships or mergers.
The Realistic apex of both industries are quite near I believe, and the entity who can master the five concepts of Display Power, Network and Delivery Stability, Responsible Measurement, Content And Interactivity will likely be the ones to lead us to a brighter future and make our segment Undeniable.
Uh Oh… The Monster under our Digital Signages: Google
It has not even been a week since the Sina.com + Focus Media: Paving the way for Google to run over Out of home Media post, and now it seems that Google’s entry into the Digital Signage space is definitely possible, which is probably a welcomed prospect for some; Scary for many. Those Googlers do work fast! Here is a video that illustrates the New Digital Information Signages at the New York City Information Center:
Yeah, it’s for information, but we can obviously see the potential applications of this type of system; between the Touch-Screens, and content delivery capabilities, and an Adwords-type system, this could potentially be a historical event in our industry when we look back a few years from now. You know Google excels in building a business process very rapidly, and most definitely has the funds to buy out networks / programs in our industry; which is probably what some companies / stakeholders are wishing for, but for the potential competitors; this is ABSOLUTELY SCARY! as Google can come in and wipe out companies with the snap of their figures…
Just Out-Of-Home will be keeping a close eye on this development, as many of you out there will as well. Not sure how this will all unfold, but it’s certainly possible that there will be mergers, acquisition, and bankruptcies a comin in our space..
Sina.com + Focus Media: Paving the way for Google to run over Out of home Media
For some time, it has been the general sentiment here at Just Out-Of-Home that sooner or later, online media and out of home media would some how eventually converge. This is not some Nostradamus-esque prediction either; we know a lot of the creatives, especially designed for digital signage, are similar (if not the same) formats as those used in the online advertising biz. Another is the fact that most digital signage & networks are indeed connected by the Web (at least in the simple sense), and there are also web-based content management programs popping up like crazy these days. The connection between online and out of home may be a destiny as with this combination, advertisers will be able to hit consumers EVERYWHERE!!; at and out of their homes. Indeed, a potentially lethal and undeniable media mix in the near future. Lastly, no media has shown the ability to collect, record, and report accurate data more than online media, and out of home is still in its infancy in terms of research / data standardization, and perhaps online companies can bring in a fresh perspective and speed up the process.
Well, this concept is actually coming to fruition as Focus Media (a GIANT in the Chinese out of home company) released the following statement:
Focus Media Holding Limited (Nasdaq: FMCN), China’s leading multi-platform digital media company, today announced it has entered into a definitive agreement with SINA Corporation (Nasdaq GS: SINA), a leading online media company and value-added information service provider for China and for global Chinese communities, that SINA will acquire substantially all of the assets of Focus Media’s digital out-of-home advertising networks, including LCD display network, poster frame network and in-store network.
And here is the “small snow ball”… So, do we think the Web demi-god, Google, will stand idly by while their Chinese counter-part makes such “Checkmate in 3″ moves? Well, here’s the answer
If you clicked on the link, you will see a one of Google’s Patent Application. Yeah, it’s long and perhaps boring; but in sum, Google seems to be looking into making the same moves as Sina did recently. AdWords-like system + Digital Sigange? If this is the case, this may have huge implications and effects on the out of home industry; implications and effects that will have to be thought about very deeply. What we do know is, where ever Google has gone, they have had a good market share (maybe not the Gphone…), and most of the times; Just simply Dominated! With the Google’s “think tank” and their bankroll; one has to wonder what the out of home media landscape will look like post-Google; mergers, buys, and a graveyard of companies unable to compete are all certainly possibilities. Great for the companies / stakeholders getting bought out, Scary for the others. We may not have to wonder for too much longer… Google still beat analyst earnings expectations recently, while the current reality of the out of home space is that it has also gotten hammered along with everything else. We saw 2009 as out of home’s year of consolidation, in companies and methodologies; But add Google into the mix?
The “small snowball” that turned into an Avalanche…
Ricoh goes “Green” with their Digital Signage / Billboard
Just Out-Of-Home is a friend to the planet earth, and a fan of all things in Green Tech land. Here is a “why didn’t I think of it first?”-moment. According to nytimes.com, the Japanese office equipment maker, Ricoh, is setting an example for everyone else by installing the first “Green” digital signage EVER in Time Square / Eastern U.S., 2nd in the U.S., and 3rd in the World; all powered by 64 solar panel, and 16 wind turbines; reducing CO2 usage by approximately 18 tons a year, and saving about $12k to $15k a year in Con Ed bills! Just Out-Of-Home has two words for this; “Just Awesome!” Now only if power can be generated from the freezing cold… Hey Titan Worldwide; are you listening??
