Digital Signage Insights

Digital Signage Show - Thoughts from Day #1

dbweinfeld@gmail.com (David Weinfeld) — Tue, 10 Nov 2009 21:00:00 +0000

The traffic on the show floor today has been very good. Some of the conference sessions I attended were packed. While things have slowed down a bit this afternoon, all in all, exhibitors and attendees should be very happy with Day #1 of the Digital Signage Show.

The keynote presentation delivered by Gregg Kaplan, President and COO of Coinstar was standing room only. Considering the success of Coinstar's Redbox unit, of which the speech was focused, it was pretty easy to see why attendees were hanging on Kaplan's every word.

It was interesting to hear about the growth of Redbox direct from the horse's month. Having originated as a multi-product kiosk outside of McDonald's, I wasn't surprised when Kaplan talked about how entrepreneurs shouldn't be afraid to change their business models when they see that there original plans are not working.

Another nice piece of the keynote included Kaplan citing the winner of Coinstar's $10,000 Big Idea Contest. The Winner was ecoATM, a consumer electronics disposal kiosk (a company that I will certainly expand upon in the near future). We'll be seeing a lot more ecoATM systems in the near future.

I have had some great conversations through the first day of the show, including a thought-provoking and insightful discussion with Chris Borek from Target, my colleague from the Preset Group Paul Flanigan, and Eric Mauriello from Schematic. The engaging conversation encompassed the role interactive systems play in retail and the need for such applications to be used more within store environments. I wish I had a transcription of the conversation to share with you. Seeds from the conversation will surely find their way into future posts.

Be on the lookout for further information about the show and some of the conference sessions I have attended.

For On-the-Go Mobile Coupons, Consumer Customization is the Key

dbweinfeld@gmail.com (David Weinfeld) — Mon, 09 Nov 2009 21:16:00 +0000

With the rise of location-based mobile services like Foursquare, Gowalla, and Loopt, more and more consumers are broadcasting where they are throughout the day. The emerging trend extends from checking-in at bars/restaurants to earn special badges to keeping your social network abreast of every detail of your life. As an ever greater number of people join these services and participate in increasingly vibrant mobile communities, advertisers will gain an enhanced ability to deliver targeted offers at the moment of truth (right when you pass in front of a retail store, restaurant, or cafe).

In a recent display of the company's On-the-Go mobile couponing capability, AT&T detailed a scenario in which a consumer would receive SMS offers from every retailer nearby. While some in the marketing community may claim that this is an amazing solution that all consumers would clamor for, I believe that such a proposition is quite dangerous if not handled with the utmost responsibility and care. Who would really want to receive an endless flow of mobile offers from every retailer in sight? I struggle to think that any person would find long-term value in that.

It can't be denied that location-based mobile applications and social networks create amazing opportunities for brands and retailers. Location awareness creates opportunities for just-in-time promotions and campaigns that leverage real-time consumer data. In the sphere of location-based mobile services, advertisers must always remember that WITH GREAT POWER COMES GREAT RESPONSIBILITY.

In ceding some of that responsibility to consumers themselves, its provides the greatest chance that everyone will emerge as winners. Consumers will receive relevant, targeted ads/offers they welcome, and advertisers will forger greater relationships with customers through flexible, efficient, and timely mobile campaigns. Once opted into a specific LBS (i.e. Foursquare), consumers must be given the ability to opt in and out of offers from specific advertisers and within specific verticals.

Instead of receiving a barrage of text offers and mobile coupons, as though opting into a mobile service meant releasing the dam to an entire mall's worth of promotions, a person must have the ability to create finite boundaries for what offers and information he chooses to receive. I envision a system in which a person can create a "mobile offer profile" that can be as specific and detailed as he wants (option to drill down to specific savings amounts, types of apparel, times of year, etc).

Within his "mobile offer profile," a consumer would also have the ability to create a virtual wallet to house all of his mobile coupons. Rather then being alerted of every offer via a text message, coupons could go directly to a person's virtual coupon wallet. He could search through the wallet via a web-based interface in which he would be able to segment offers by category, amount, location proximity, etc.

The key to achieving success with on-the-go mobile coupons is consumer customization.

WSJ Office Network Takes Brands Beyond the Screen

dbweinfeld@gmail.com (David Weinfeld) — Fri, 06 Nov 2009 21:24:00 +0000

Supporting my argument for greater integration of experiential and guerrilla marketing with digital out-of-home media, companies advertising on the Wall Street Journal Office Network have realized strong returns in complementing their campaigns with in-lobby sampling programs. Hyper-targeted events for Blackberry, in which brand ambassadors introduced office workers to the company's newest smartphones, successfully played off the brand awareness the mobile manufacturer generated through ads on WSJ Office Network displays.

WSJ Scores With Out-of-Home Digital Screen Strategy

"The opportunity to put product into people's hands is a tremendous complement to the media playing on our screens," said Jim Harris, CEO of the Wall Street Journal Office Network.

Why to Fear the Potter's Wheel

dbweinfeld@gmail.com (David Weinfeld) — Thu, 05 Nov 2009 20:54:00 +0000

In the early days of television, most output was live. The hours of broadcast were limited and so, for test purposes, a test card was commonly broadcast at other times. When a breakdown happened during a live broadcast, a standard recording would be used to fill-in. On the BBC, a film of a potter's wheel was often used for this purpose... (Wikipedia)

Whether you operate a web property or a digital signage network, its critical that you remove the word "FILLER" from your vocabulary. Producing engaging content and filling your screens are mutually exclusive. One is created to deliver value, whereas the other is a means to end.

If you're struggling to find the right content strategy for your network, or if pages of your website and quadrants of your screen are blank, don't just FILL them in for the sake of moving forward. In doing so, you're only moving backward.

Don't insert a news ticker or weather map into your content frame because you can't think of anything else to put there. Move beyond the lowest common denominator.

Even a potter tires of watching a potter's wheel.

Daffy's and Screenvision Partner on Guerrilla Cinema Campaign

dbweinfeld@gmail.com (David Weinfeld) — Wed, 04 Nov 2009 20:55:00 +0000

With cinema advertising's growth into, what some would argue, its own media bucket, companies are increasingly working to separate themselves from other on-screen advertisers. This drive for uniqueness has initially manifested itself into cinema campaigns that utilize mobile interaction. Now, thanks to a collaboration between clothing retailer Daffy's and Screenvision, guerrilla marketing tactics are being added to the cinema advertising mix.

Moviegoers got more than they bargained for on Friday night, when dancers streamed onto the stage at New York City's Ziegfeld Theatre just prior to a showing of "Amelia." For three and a half minutes, 10 dancers performed what Screenvision says is a first-of-its-kind live in-cinema ad. The "Fitting Dance" was accompanied by images on the movie screen behind the dancers. Only near the end was it revealed that patrons had been watching a lengthy ad for Daffy's. (via Ad Age)

I have long held that there are number of synergies to be realized in bringing together guerrilla marketing and digital out-of-home media. We have seen minimal use of brand ambassadors and live promotions to enhance DOOH campaigns.

Companies like Monster Media and Inwindow Outdoor, whose interactive streetlevel billboards are designed to get passersby to engage in branded experiences, would be well-served in integrating elements of guerrilla marketing into some of their campaigns. For example, Monster Media could have brought in cheerleaders during peak traffic periods to generate further buzz and energy around the company's recent interactive campaign for Monday Night Football.

If I were Daffy's, I would extend its guerrilla cinema campaign to the streets. Using the same digital media content as shown in Daffy's cinema ads, I would partner with a company like Monster Media, Pearl Media, or Inwindow Outdoor and transform a digital streetlevel billboard into a flash mob dance performance.

Parking FAIL Turned Into Hyundai Brand Win

dbweinfeld@gmail.com (David Weinfeld) — Wed, 04 Nov 2009 19:44:00 +0000

How do you tap into the stream of social media and forge stronger relationships with customers?

The following story is one of the best illustrations of how a brand can elevate itself in a world of YouTube and social networking.

There's a video circulating on the Web (over 1.7 million views on YouTube) that shows the worst parking job you will ever see. The driver of a BMW SUV accelerates through a parking spot and destroys two cars in the process. And, to top it all off, leaves the scene of the crime.

Left in the wake of the hit and run crime was a 2004 Hyundai Elantra that was crushed beyond repair. You can imagine how the owner must have reacted when he returned to the parking lot to find his car with a flattend roof and windshield.

Thanks to Hyundai of Canada the story didn't end here...

With the video of the incident spreading across the Web, Hyundai of Canada learned of their customer's plight and seized the opportunity to do something GREAT.

What a brilliant move by Hyundai. The company has turned a massively popular viral video depicting a ridiculous crime into a towering example of Hyundai's lasting relationship with its customers. This is a great PR and marketing win for the company. The momentum of the parking accident video is driving increased coverage of Hyundai's act of kindness.

The last frame of Hyundai's video response says it all:

"At Hyundai, we like a story with a happy ending."

Digital Display Networks Has Hands Full w/ 7-Eleven

dbweinfeld@gmail.com (David Weinfeld) — Tue, 03 Nov 2009 20:41:00 +0000

There has been a lot of Web noise today about the announced 7-Eleven TV network. While republishing the press release is a nice way to get the word out, such "reporting" doesn't get at the heart of what Digital Display Networks, 7-Eleven's digital signage operations partner, faces in partnering with the c-store operator.

7-Eleven has been down this road before; a road that ended in a deep precipice. 7-Eleven didn't fall in, but its partner certainly did. 7-Eleven's first foray into digital signage grew out of the company's partnership with Next Generation Networks (NGN), a once promising media startup that exploded with the Internet bubble. NGN paid a steep price to get into bed with 7-Eleven, agreeing to pay a minimum of $3 million in yearly partnership fees. NGN's contract with 7-Eleven also included a clause that guaranteed the c-store operator a payment of $150,000 if NGN failed to install its network in at least 4,800 7-Eleven stores. Furthermore, 7-Eleven had the right to terminate the partnership agreement with just 30 days notice if NGN didn't meet the 4,800 installed location mark.

It should come as no surprise that NGN failed to meet the required rollout schedule. Buckling under the pressure of high infrastructure costs and exorbitant partnership fees, NGN now lives as a digital signage cautionary tale. The company went from raising $96 million in investment capital and heading toward an IPO to existing in perpetuity as a digital signage punch line.

There's a great article on the old Webpavement blog (NGN E*billboards - What Went Wrong? ) that details NGN's demise. It's a recommended read for everyone in the industry.

7-Eleven didn't put any skin in the game. Any digital signage professional worth his salt will tell you that a retailer must have a vested interest in an in-store network for it to have any chance for success.The Company wrangled NGN, much to its own shortcomings, into a one-sided "partnership." What's to say that 7-Eleven is interested in anything different this time around?

My assumption is that DDN is fronting all of the capital for the network; thus banking its future on 7-Eleven TV. Once again, 7-Eleven is in a position to suck the life from another digital signage startup.

What do you think will happen?

"Virtual Street Corners" - Knight News Challenge Winner

dbweinfeld@gmail.com (David Weinfeld) — Thu, 29 Oct 2009 14:06:00 +0000

Virtual Street Corners is an innovative digital out-of-home media project designed to connect socially isolated neighborhoods. The project is the brain child of new media artist John Ewing. Using rear-projection and video conferencing technology, the Virtual Street Corners are to become windows into communities with different socioeconomic backgrounds, in an effort to encourage the residents to interact.

The concept grew out of the 2010 Knight News Challenge, a contest awarding as much as $5 million a year for innovative ideas that develop platforms, tools and services to inform and transform community news, conversations and information distribution and visualization.

The Knight Foundation awarded Ewing a grant of $40,000 to bring his Virtual Street Corners to life.

John Ewing, Virtual Street Corners from Knight Foundation on Vimeo.

Scheduled to debut May 15th 2010, Virtual Street Corners takes a large storefront window located in front of a bus stop in each neighborhood and transforms it into a video screen. These video screens, which will stream a real-time feed 24/7, will literally provide a window into the other community in an effort to encourage the residents to interact. The screens will also serve as media centers for news collection and reporting, creating a ‘virtual town hall.”

In order to facilitate personal interaction and news reporting, Virtual Street Corners has organized three citizens from different areas of each town to report daily news on a scheduled basis. In addition, there will be a website that streams both live feeds and hosts podcasts/videocasts for download. (via PSFK)

Digital Strangelove: "It's About Synergies In Your Audience"

dbweinfeld@gmail.com (David Weinfeld) — Tue, 27 Oct 2009 20:31:00 +0000

Thanks to venture capitalist extraordinaire Fred Wilson for posting this insightful and thought-proviking slide deck on his blog, A VC. Kudos to the presentation's creator David Gillespie. The ideas and concepts expressed therein should be explored by all.

Digital Strangelove (or How I Learned To Stop Worrying And Love The Internet)

View more documents from David Gillespie.

Some of my favorite ideas and quotes from the deck:

Consumption and conversation are now hand in hand.
"...(engage) with the intent to hear and the intent to consider what those folks are telling you." - Altitude Branding
Intention Economy: "We're not here for you, we're here for US!"
The market for something to believe in, is infinite.
"It makes increasingly less sense to talk about a publishing industry, becasue the core problem publishing solves - the incredible difficulty, complexity, and expense of making something available to the public - has stopped being a problem." - Clay Shirky
"I don't have to control the conversation to benefit from their interest in my product. The key is to produce something that both pulls people together and gives them something to do." - Henry Jenkins

Live TV & Events at a Theater Near You

dbweinfeld@gmail.com (David Weinfeld) — Tue, 27 Oct 2009 12:30:00 +0000

Want to watch the championship game on a screen larger than your entire living room? How about hosting your Oscar party at a place where everyone gets to have the best seat, the best view, and the best fan experience?

All you have to do is head to a theater near you.

Taking advantage of off-peak movie hours, Screenvision announced Monday, October 26, that it is rolling out its new live feed technology to 300 theaters by the end of 2010. The technology allows Screenvision to reach a broader audience with sports, concerts, arts and news events on the 40-foot screen.

“From documentaries, concerts, live sports [and] comedy, we are creating a full spectrum of alternatives to compliment the biggest draw of all, the feature-length movie,” said Darryl Schaffer, executive vp of exhibitor relations for Screenvision. (via Mediaweek)

What started as an experiment to see if theaters could create a new stream of revenue is becoming a complete business line. Bringing live media feeds into theater environments, leveraging the same technological infrastructure that powers Hollywood's cinematic offerings, creates a plethora of business opportunities for companies like Screenvision and National Cinemedia. From live sporting events to concerts and comedy shows, the sky is the limit for Screenvision and NCM to deliver engaging, one-of-a-kind experiences to their customers.

What Brands Can Learn From Disney's Retail Remix

dbweinfeld@gmail.com (David Weinfeld) — Fri, 23 Oct 2009 20:48:00 +0000

Disney is in the process of revitalizing its retail store environments. The Company is endeavoring to extend the magic of its brand to its 340 U.S. retail locations. In the same way that visitors to Disney World speak of stepping into a fantasy land, so too must the Company's stores evoke boundless imagination and whimsy. In their current state, Disney stores in malls across the country appear more like gift shops than true extensions of the Disney brand.

As part of its retail reboot, Disney is seeking to transform its fixed locations into all-encompassing brand experiences. Identifying the brand victories that could be realized in building its retail stores into platforms for vibrant consumer engagements, Disney is owning the fact that its current retail strategy is missing the mark. While other companies cite high infrastructure costs as limitations to making retail improvements, Disney understands that if it weren't to adapt to changing consumer behavior, its fixed retail operations might not be in a position to be saved in the future.

The company plans to revamp all of its 340 U.S. stores, complete with theaters where children can watch clips from their favorite Disney films. Visitors can also speak with characters via satellite, role-play costumes, interactive displays activated by computer chips built into merchandise and touch screens where parents can book a Disney Cruise.

“It’s about making this an experience rather than just picking up a toy,” said Disney rep Shawn Turner. “We want them to leave feeling like they had the full Disney experience. They don’t necessarily need to go to the park to have that experience, they can get it at the local mall.”

"You have to build a brand experience that’s enriching enough in its own right, but also amplifies that experience after they leave the store.” (via BrandWeek)

Instead of looking at its retail stores in a vacuum, Disney realizes that these environments are arms that extend from the body of its brand. Seeing that improvements can be made, the Company is seizing the opportunity to change things for the better. Changes are being made both for the good of the business and the customer. Disney knows that improvements like these shouldn't be looked at purely through the scope of "What is this going to cost us?"

Disney is asking the question, "What is it going to cost us if we don't improve our retail stores?" More companies need to be asking themselves that question. More brands need to realize that retail improvement and technology enhancement costs aren't just line items on a page. They are gateways to more enriching brand experiences.

Why Digital Out-of-Home Media Companies Need to Look Beyond OOH

dbweinfeld@gmail.com (David Weinfeld) — Thu, 22 Oct 2009 20:57:00 +0000

In order to reach its full potential, the digital out-of-home media industry needs to look beyond out-of-home. DOOH companies must extend their reach across a range of media platforms. By expanding beyond the silo of out-of-home, these emerging networks give themselves the best opportunity to grow into complete media properties.

Thanks to the current shift in content creation, distribution, and consumption, emerging media companies stand to reap the greatest gain by turning old business models on their heads. It's important to remember; however, that there are elements of the old guard that are worth preserving and building from.

I'm not here to echo the death of newspapers or other forms of traditional media. I think we can all agree that newspapers, magazines, TV, etc. aren't going anywhere. As we enter the age of real-time news and constant communication, they may not look the same, behave the same, be distributed in the same manner, or rely on their current business models; but it's illogical to think that pillars of the media industry will just vanish. Just as companies in a vast array of industries have had to adapt in order to stay relevant and survive, so too must traditional media companies reimagine themselves in a world of universal publishers and empowered consumers.

In the same way that traditional media companies must expand beyond their once safe silos of operations, digital OOH networks must not fall into the trap of fencing themselves off from other media outlets and content models. Rather than solely focusing on the DOOH platform, which can bring stars to they eyes of the most seasoned entrepreneur, these organzations must embrace the opportunity to become 360 degree media companies.

The disclaimer here is that I'm not promoting a DOOH media company launch a radio network or newspaper; or create business lines that are incongruent with the organzation as a whole. But, what about launching a podcast series or a digital newsletter? For niche place-based networks in doctors offices and veterinary clinics, distributing content through media platforms like these can serve to spread the reach of the network's brand. Cross-channel distribution can increase a DOOH network's status in its respective vertical, and create opportunities for its content to be discovered by a broader audience.

The financial barriers that once restricted a new media company's ability to reach a mass audience are now gone. You don't need radio towers, satellites, or large infrastructures for distribution. A blogger, an upstart online magazine, or DOOH media network all have the opportunity to become pillars of our media future. To do so, they need to be ready to adapt and expand at a moment's notice.

What Digital Out-of-Home Can Learn From Yahoo's Branded Content Partnership w/ WPP

dbweinfeld@gmail.com (David Weinfeld) — Wed, 21 Oct 2009 20:47:00 +0000

News broke today of a branded content partnership between Yahoo and ad giant WPP. Yahoo's reach is the driver behind the deal. WPP's Group M Entertainment will create branded webisodes and Yahoo will provide the distribution. The objective is to leverage original branded content, also known as branded entertainment, to deliver online experiences that users enjoy, while also fulfilling the needs of advertisers.

The creation of original content that enganges users and generates advertising revenue represents the cornerstone of the partnership; it's about the development of online properties that users welcome and that brands can support.

Branded content is content made specifically for an advertiser - in the case of this announcement video content. Typically in the case of video the content is produced as 5-10 minute "webisodes" and usually feature storylines around a specific product (a show about someone driving cross country in a Toyota Hybrid, sponsored by Toyota, for example) with plenty of product placement. (via Silicon Alley Insider)

Branded entertainment will play a significant role in the future of advertising.

It is still surprising to me that we don't see more examples of branded entertainment in the digital out-of-home media sector. It is an ideal way to deliver original, high-quality content that exists in the grey area between advertising and entertainment. DOOH networks would gain the dual benefit of engaging media that strengthens their platforms' value proposition and revenue-generating sponsor involvement.

Tying relevant advertisers to worthwhile content, enriches the consumer experience. It also reduces content-creation costs incurred by a DOOH network, while bridging the gap between the oft-divergent desires of consumers and advertisers.

Digital Future: Painting With Video

dbweinfeld@gmail.com (David Weinfeld) — Wed, 21 Oct 2009 18:02:00 +0000

As existing technologies are adapted and new ones are created, it's a foregone conclusion that creative expression will grow in breadth and diversity. Connecting digital technology with physical spaces broadens the scope of what our environments can become. Boundaries are eliminated. Communication channels are opened. Unique experiences are created.

Bruno Levy and Blake Shaw make up Sweatshoppe, a mutimedia performance group who have developed a way to “paint” with video. The duo of video artists attach LEDs to paint rollers, which are tracked by the video control software. Drawing commands are generated, and the stokes of the roller are textured with video. (via PSFK)

Watch it in action below:

SWEATSHOPPE, 4spots, the landing extras from SWEATSHOPPE on Vimeo.

The Preset Group and My Digital Signage Future

dbweinfeld@gmail.com (David Weinfeld) — Tue, 20 Oct 2009 20:45:00 +0000

You may have come across a digital signage press release with my name in it today (click here to read the release). Ultimately, the announcement marks my next step in the digital signage industry: Joining The Preset Group.

To work with Paul Flanigan, Dave Haynes, and Pat Hellberg (the three founders of Preset) in building,what is sure to be, a preeminent digital signage consultancy is the opportunity of a lifetime. Given the experience, knowledge, and thought leadership that each of the founders brings to the table, joining The Preset Group feels like being picked for an All Star Team. Having connected through like-minded approaches to the digital signage industry, as evidenced in our blogs and work across diverse DOOH projects, stepping into Preset and partnering with Paul, Dave, and Pat couldn't be more of a natural fit.

As a Principal in The Preset Group, I will be leveraging my background in communications strategy, mobile technology, social media, and emerging Web applications across client projects. Bringing a unique skill set and fresh perspective to the group, and combining that with the talents of the three founders, is paramount to why Preset will have a major impact on the direction of the digital signage industry.

I will continue to share my thoughts and insights on the digital signage industry and emerging media platforms on this blog. I will also be contributing articles and strategic insights to the Preset Group's new blog, called “Right, From The Start.” The blog, found off the main corporate Website, is intended to offer advice for companies who are planning digital signage networks and struggling with strategy and execution issues.

The Preset Group was founded recently to help established companies, media start-ups and investment groups plan and launch successful digital media networks. The three founding partners together offer decades of diverse, directly relevant experience and insight to clients who are trying to put together and execute plans, in what is a fast emerging, rapidly evolving industry. The insights of the partners, whose experiences include running the retail networks of Nike and Best Buy, are bolstered by a global roster of specialists in specific knowledge areas, such as retail strategy, retail anthropology, audience measurement, IT network design and business best practices. You can read more about The Preset Group at its website: http://www.presetgroup.com

How do You Feel About Amusement Park Advertising?

dbweinfeld@gmail.com (David Weinfeld) — Fri, 16 Oct 2009 21:11:00 +0000

With games, junk food, and roller coasters as far as the eye can see, amusement parks are designed for entertainment and commerce. For many of us, we visit a park like Six Flags once a year. We stand in lines, overpay for trinkets at the gift shop, and try not to get wrangled into spending $25 to win a toy worth 50 cents.

In addition to the revenue Six Flags generates from ticket sales and concessions, the Company has a comprehensive media network. The company works with local, regional, and national advertising partners through a diverse group of media platforms, including Six Flags Print, Six Flags Radio, Six Flags Television, Six Flags Outdoor, and Six Flags Online.

In the same way that professional sports teams garner arena sponsors and advertisers by selling the value realized in connecting with the fan experience, Six Flags promotes its media network as a means to drive strong brand visibility within a fun-filled environment. There's no doubt that Six Flags must walk a fine line between generating revenue from advertising opportunities and exploiting those who pay to visit its parks. It is an especially touchy subject when you consider the number of children that frequent parks like Six Flags.

While it's a slippery slope, such conflicts of interest can be navigated as long as Six Flags' media properties provide value to park visitors. If people are entertained while waiting in line (think digital signage in waiting areas) or given information they would have struggled to find elsewhere, they are much more accepting of advertising messages interspersed within value-added programming. By focusing on the needs of its patrons first and advertising second, amusement park operators are then able to leverage positive consumer sentiment to drive sponsor participation.

I would love to get your opinion on amusement park advertising.

Do you think Six Flags and other amusement park operators should be making money from advertising to you and your children?

Best Buy Goes High Brow with Digital Art Exhibition

dbweinfeld@gmail.com (David Weinfeld) — Fri, 16 Oct 2009 17:40:00 +0000

How great is it when a large corporation embraces creative expression? Whether it's in how it markets its products or communicates with its customers, a company can forge richer relationships with employees and consumers by doing so. Extending creativity and innovation to a company's retail environments allows an organization to showcase its unique personality.

By opening its doors to an art exhibition, a Best Buy in New York City succeeded in connecting its store visitors to the transformative power of digital technology. The artwork breathed life into the store's flat panel televisions. They became vibrant canvases that captivated the eye as much as they featured the consumer benefits of high definition technology.

The digital exhibition highlighted Best Buy's brand authenticity and the store's active role in its community, while also serving to enrich its customers' retail experience. (photos via PSFK)

Ecast Raises $17 Million in Equity Funding

dbweinfeld@gmail.com (David Weinfeld) — Thu, 15 Oct 2009 17:13:00 +0000

Ecast, a maker of Internet-connected digital jukeboxes for bars and restaurants, has secured $17 million in new funding, PaidContent reported, citing an SEC regulatory filing.

Korea's LG Electronics, a new investor, joined previous backers Foundry Group, Escalate Capital Partners, DCM and Crosslink Capital in the round. Ecast has raised over $80 million since it was founded in 1999.

Tom Blaisdell, General Partner at DCM, was a member of the Venture Capital/Private Equity Panel at last week's Digital Signage Investor Conference. While he spoke of his firm's backing of Ecast, and his support of the company's movement into larger scale interactive media systems, he certainly didn't allude to an upcoming equity fundraising.

With LG electronics coming on as an Ecast investor, it further cements the existing relationship between the two companies. LG and Ecast recently teamed up on the installation of an interactive digital signage network at the home of the Chicago White Sox, U.S. Cellular Field.

The installation combines more than 50 LG "Full HD" 1080p LCD HDTVs and digital signage monitors for use in video walls and concessions with ten of the Ecast IQ(TM) 40-inch vertically oriented, interactive media touchscreen displays. The installation centralizes video content and display control capability and leverages LG's unique IP solution to enable video content delivery to multiple monitors. Simultaneously, Ecast's interactive media platform distributes custom applications to its ten IQ touchscreens.

"Extending the Ecast platform onto LG's new IP-based HDTVs and monitors opens the door to a variety of new solutions for the hospitality and entertainment markets," said John Taylor, Ecast CEO and president. "Using a combination of cutting-edge hardware and custom software to deliver broadcast quality video and custom advertising over the stadium's existing Ethernet network, we've enhanced the fan game day experience like never before."

"As a technology innovator in the digital signage industry, LG Electronics is committed to providing an interactive, high-definition experience for patrons in the stadium environment," said Jeff Dowell, vice president of Digital Signage, Commercial products, LG Electronics USA Business Solutions. (via Reuters)

AR Mirror: Cisco's Future of Shopping

dbweinfeld@gmail.com (David Weinfeld) — Tue, 13 Oct 2009 20:09:00 +0000

Cisco's augmented reality mirror provides a glimpse into how cutting-edge technologies like AR will transform shopping environments. The digital style concierge reimagines the changing room experience. I would add a "Share This" button to the mirror so that customers could post fashion styles to their social networks for friends to comment on.

We're already starting to see consumers reach out to their social communities for fashion advice and feedback via sites like StyleCaster. It's undeniable that Cisco's AR mirror brings greater interactivity, flexibility, and efficiency to the shopping experience. Adding social features to the mirror, such as a Pandora-esque "thumbs up, thumbs down" tag or a send to Twitter/Facebook button, would enhance its functionality; further bridging the gap between bricks and mortar shopping and e-commerce.

How to Enhance the Sports Fan Experience

dbweinfeld@gmail.com (David Weinfeld) — Mon, 12 Oct 2009 21:21:00 +0000

In a prior article, I described how to build a successful mobile marketing campaign within a sports arena. The key is for advertisers to draw fans into a 360 degree brand experience. Sponsors need to take an active role in the stadium environment. Having your logo plastered on the walls of a highly trafficked concourse, will get you eyeballs, but what else? You need to activate that advertisement and get people to interact with your brand. Think of the advertising board as a jumping off point. It is your point A, from which you can lead consumers in any number of different directions.

Thanks to emerging mobile and digital technologies, a static advertisement doesn't have to cede to being a one-dimensional branding tool. It can be a call-to-action that takes you on a scavenger hunt around an arena. Using image recognition technology from LinkMe Mobile, you can capture visual answers to sports-related trivia questions as you move throughout a venue. An advertising display can become the starting point for an augmented reality adventure. Stadium attendees can unlock clues, prizes, and special discounts by connecting their phones to mobile-enabled billboards. Whether it be via Bluetooth, augmented reality, QR code, or NFC (near field communication), a billboard doesn't need to exist within the silo of a singular creative approach.

As CMOs and brand managers search for new, creative ways to engage consumers in sports stadiums, they must make ample use of the resources that lay before them. Instead of focusing solely on building brand awareness, advertising professionals realize widespread benefits by crafting campaigns that focus on activation and ROI. With out-of-home media and digital technology working in concert, brands can create all encompassing fan engagements.

With digital signage and interactive displays playing a larger role in stadium environments, brands have more platforms from which to create unique campaigns. Arena Media Networks offers advertisers a number of creative opportunities that extend beyond generating brand awareness. Thanks to the timeliness and flexibility of digital signage, brands can exhibit greater fluidity in these environments. Messages can be aligned with team performance and specific events that occur during a game. In building creative ads that leverage real-time information, brands can forge more lasting impressions with stadium visitors.

It's about taking an active role in the stadium environment, building off of the emotion and excitement that flow through sports arenas. While it forces brands to think outside of the silo of brand awareness, it allows them to become part of the complete fan experience. One must not be afraid to seize upon the many interactive opportunities that fans come in contact with. Through the use of guerrilla marketing tactics and digital applications, static advertisements can become much more than single points of contact.

When you think about all of the different advertising initiatives that networks like Arena Media make possible, you can get lost in the creative possibilities. Fans can engage in multi-player fantasy sports games, interact with screens via mobile applications, and communicate with fans across the arena through digital displays. What's exciting about sports arenas acting as the backdrop for marketing campaigns is how technologically-advanced they are.

With a myriad of technology platforms at their finger tips, it's hard to imagine why brands wouldn't leverage every possible opportunity to connect with fans who are already at the peak of excitement. It's great for brands to get involved in these environments because stadiums encapsulate the shared sense of belonging amongst fans, the passion they hold for their teams, and the all-encompassing entertainment that characterizes the in-arena experience.

Media planners and marketing managers were once able to fulfill their duties by buying boards throughout stadiums and quantifying the number of people that would "see" them. But as digital technology has forced brands to better scrutinize their use of different media properties, so too must sports marketing professionals be liable for the decisions they make. The days of just buying a stadium banner or a couple static displays along an arena concourse are numbered. Brand managers must activate the engagement opportunities that grow out of these environments. Brands can now move seamlessly across stadiums, shifting messages according to team performance.

Thanks to continued innovation in the areas of experiential marketing and fan participation, sponsors can challenge their sports marketing partners to create campaigns that speak to the unique aspects of their brand. I imagine that as Arena Media grows across professional sports stadiums (the company is in over 50 professional sports venues), we'll see an increasing amount of cross country multi-player rivalries. Thanks to smartphone application development, we're beginning to see more venue specific mobile offerings. Whether it be direct mobile ordering, customized venue maps, or augmented reality layers, fans can unlock the core elements of the stadium experience from the palm of their hands.

The jobs of brand executives and marketing managers require greater research and creative development beyond the tried and true tactics of old. For those who are reticent to cede their brands to the control of their customers, they will continue to drift into the abyss of zero relevance. To exist in today's stadiums and thrive therein, brands need to be willing to step from the static billboards of old and participate in the environments themselves. That could be via touchscreen interactivity, mobile activation, or any number of experiential marketing tactics. Instead of being another logo on the wall, companies must seize upon the chance to "interact" with fans.

Rishi Shah and ContextMedia are Doing Business Right

dbweinfeld@gmail.com (David Weinfeld) — Fri, 09 Oct 2009 20:03:00 +0000

I think I'm going to have to start a list of companies to watch in the media and technology space. From Foursquare to Reach Media Group, I have been singing praises as of late. Thanks to meeting Rishi Shah, CEO of ContextMedia, at the recent Digital Signage Investors Conference, I have another solid organization to introduce you to.

Rishi Shah is a CEO with a purpose. In speaking with him at the Strategy Institute event, I was captivated by the passion he has for his company, ContextMedia. In our conversations, he outlined his mission of using digital signage technology as a means to educate people with Diabetes. He is a champion of this movement, knowing first-hand the difficulties Diabetes sufferers face. Having close relatives with the disease, and a father who is a Diabetes specialist, Rishi is driven to make the Diabetes Health Network a premier medical education resource. He is fast on his way to building DHN and ContextMedia into just that.

In order to be successful over the long-term, and grow into a trusted media source, a digital signage network must deliver value to its viewers. Rishi Shah understands this hard-and-fast rule to a T. It's clear that if his network didn't engage and educate its viewers, he wouldn't be in this business. While existing as a for-profit organization, ContextMedia is shaped by its founder's desire to do good.

From a business perspective, DHN, ContextMedia's first digital out-of-home network, is an exciting media property with strong growth potential. It offers a pinpoint targeted audience. Rather than building a network to appeal to the general healthcare industry, Shah and his partners have seized upon a valuable niche market opportunity; a model Shah plans to repeat.

DHN is used by 1 in 5 Diabetes specialists nationwide. It is seen in over 600 waiting rooms throughout the country, and impacts over 700,000 viewers per month. The network is supported by five of the top twenty global healthcare and pharmaceutical companies. I don't know the rates Shah garners from advertisers, but, per a recent article in the Chicago Tribune, his business has been doing quite well at a time when most other media properties have been suffering. The company’s sales hit $1.4 million in 2008.

Mark my words. ContextMedia is a company to watch. I have no doubt that Shah will grow Context into a valuable portfolio of condition-specific patient education television networks. He is one of those CEOs that you meet and see the spark. From his attitude to his business strategy, Shah is an entrepreneur any VC would be lucky to tie his wagon to. As he is looking for growth capital to expand his business, I recommend that those in the investment community jump onboard.

In speaking with Shah, It was pretty easy to draw the conclusion that it's not money that drives him. His desire to do good trumps all. When he and I discussed the impact of his network on the Diabetes community, I could see in his face what that meant to him. It's the entrepreneurs who are driven to make a difference in the world that find the greatest success. Shah is on that path.

Thanks to Strategy Institute for a Great Digital Signage Investors Conference

dbweinfeld@gmail.com (David Weinfeld) — Thu, 08 Oct 2009 15:20:00 +0000

I really enjoyed the event. Some sessions were naturally better than others, but overall the conference was great. Beyond hearing from VCs, CEOs, industry gurus, etc., the conference offered great opportunities for networking. I only wish that there would have been more speed networking sessions. I found myself engaged in many insightful and interesting discussions about the state of the industry and how best to harness its vast potential.

Whenever you can get together with individuals who are passionate about digital signage, understand the technology's reach, and recognize the steps the industry must take to get to the next level, you emerge with greater clarity and insight about the path you must embark upon to achieve the highest level of success.

I promise to recap the highs and lows (analyst from Oppenheimer) of the conference in a future post. But, what I really want to do now is thank the Strategy Institute. I owe them thanks for bringing together presenters and attendees who energized my thinking, offered actionable insights, challenged the industry, and shared their knowledge and experience with individuals who so clearly want the digital signage industry to realize its full potential.

I almost jumped out of my seat in applause when Ajay Chowdhury, the CEO of Enqii, challenged the industry to market itself better. He spoke passionately about the need to work together, and the rewards we would all reap in doing so. It came as no surprise that Suzanne La Forgia, the President of OVAB, seconded Ajay's pleas for greater cooperation and collaboration amongst DS companies. Every person in the industry would benefit from such activity. Their words mirrored the sentiments expressed by industry newcomer David Cutler, CMO of Aerva, in our conversations throughout the conference. His enthusiasm for working to realize the untapped opportunities within our sector was palpable. I would keep my eye out for him at future conferences. I expect that we'll be hearing a lot more from Aerva with David leading their marketing efforts.

Expressing his desire to see more companies within the DOOH space innovate by leveraging emerging technologies across complementary media channels, Paul Straub, Principal at Claremont Creek Ventures, was one of my favorite speakers at the conference. In discussing the types of DOOH companies he and his partners would invest in, he implored attendees not to focus purely on out-of-home. He spoke of thinking outside the sphere of vertically-closed networks. He challenged the room to tie into their organizations data and technology from existing and emerging properties beyond our space.

He even brought up Foursquare, a company I have written in length about over the last month. He talked about the immense consumer data being generated by the application. The points he raised paralleled the opportunities I outlined within a recent post entitled, "Foursquare Partnering with Digital Signage Networks." It was great to hear from a VC who so clearly got it.

Ultimately, Paul wants to see DOOH companies take advantage of the digital breadcrumbs that are being created online and through mobile applications. From real-time communication to social networking, his aim is to invest in enterprising organizations that take those capabilities and tie them into the digital signage space.

With the knowledge garnered, conversations shared, and connections made, it's safe to say that everyone at the conference emerged better for it.

Why TargetCast is a Digital Signage Company to Watch

dbweinfeld@gmail.com (David Weinfeld) — Mon, 05 Oct 2009 15:48:00 +0000

With a fresh round of capital and a newly minted acquisition fueling its ascension up the digital signage food chain, TargetCast Networks appears poised to be a major industry player for years to come. Even before recent events, TargetCast has always demanded industry attention due to its strong executive team and portfolio of high-profile location partners (Applebee's, Chili's, TGIFriday's). When you factor in the transactions and agreements the company has entered into over the last few weeks, it's evident that TargetCast is shifiting its growth strategy into overdrive.

TargetCast Steps into the Spotlight

September 18, 2009: TargetCast Networks announces a strategic alliance with Premiere Retail Networks. Under the terms of the multi-year agreement, PRN will handle advertising sales in key categories for TCN.

"We are excited to be working with the most experienced sales organization in the Digital Out of Home space," says TCN president and CEO Jerry Hall. "We are confident that PRN's deep relationships with clients and agencies, and many years of achieving success for their national advertisers and retail partners, will help TargetCast accelerate to the next level."
“TCN will be a strategic complement to our existing retailers, now giving our advertisers the ability to reach their target consumers across numerous touch-points outside the home,” said D. Scott Karnedy, chief of sales for PRN.

September 22, 2009: Consolidating digital out-of-home networks in casual dining chains, TargetCast Networks acquires Ripple TV, for undisclosed terms. TargetCast says the deal will create a network with a total of over 3,425 screens in more than 1,400 locations.

“When you put TCN and Ripple TV side by side, it was easy. The companies [Ripple TV and TCN] reach virtually the same demographic, the same viewer, just at a different point in their day,” said Hall.

September 30, 2009: TargetCast Networks receives $6.5 million in its second formal round of venture capital funding from Claremont Creek Ventures and Draper Fisher Jurvetson. To date, the company has raised $12.8M.

"Each of our investors has an impressive track record in identifying and supporting promising new media platforms," said Jerry Hall. "In addition, they understand that our superior domain experience and patented technology positions our company as a leader at a critical time in the media industry," Hall added.
"The combination of TargetCast and Ripple has produced an out-of-home digital media advertising platform of significant scale that is now very appealing to both national and local advertisers who are trying to catch the attention of our on-the-go population," stated John Fisher, new TargetCast Board member and Managing Director of Draper Fisher Jurvetson. "The giant sucking sound of media dollars draining out of traditional print media and into the digital realm is proof of the attractiveness of this contemporary advertising medium," Fisher added.

As Ken Goldberg of Real Digital Media points out when the Ripple TV acquisition was announced, it's likely that TargetCast will strip down Ripple's content model and replace it with the company's live TV/L-bar strategy.

Given TargetCast’s model, and the fact that they are the surviving entity here, it is a good bet that the Ripple screens will now show live TV framed with the TargetCast “L-bar”, and powered by TargetCast’s box and software. This makes sense because part of the power of TargetCast’s model is that it uses TVs that are already in place (the bar TVs at Chili’s, TGI Friday’s, Applebee’s and others) and leverages the free content from broadcast TV, leaving the only content investment to be made for paid advertisers. Whether you believe in the model or not, it has quite a bit more leverage than models that require the acquisition of compelling, relevant and targeted content on dedicated displays (a/k/a digital signage or narrowcasting). So, it’s a big buh-bye for the content partners of Ripple as well.

I believe; however, that the Ripple acquisition will give TargetCast the opportunity to experiment with alternate advertising/content models. The potential certainly exists for TargetCast to utilize live TV in certain locations (bars) and specialized content in others. With Ripple's former CEO, John McMenamin, stepping into the role of TargetCast's Chief Revenue Officer, elements of Ripple's content strategy may find their way into TargetCast's core offering.

After news of TargetCast's acquisition of Ripple began to circle around the web, many questioned whether or not TCN would continue Ripple's partnership with Border's Bookstores. Conspicuously left out of the press release announcing the acquisition, the consensus was that the screens in Border's would eventually go black.

The guess here is that TCN will support the Borders locations as is until the contract term runs out, and/or try to sell it. Borders is not a candidate for the broadcast TV/L-bar content strategy, and TCN won’t want the expense of running the Ripple technology platform for any longer than they have to. (via Broad Thinking. Narrowcasting)

In response to an article Dave Hayne's wrote on his insightful, well-crafted blog Sixteen-Nine, TargetCast CEO Jerry Hall offered a glimpse into his strategy for Border's (I love it when CEOs take time to participate in the blogosphere):

"TargetCast Networks is most interested in continuing with Border's. In fact, we have plans to improve this affiliate's screen locations and content offerings. The Seattle's Best Coffee shop-within-a-shop is consistent with our fast casual focus."

I never understood why Ripple didn't places screens in the Seattle's Best Coffee shops at Border's stores. Hall is exactly right in that the locations mirror the framework of other Ripple venues (ex: The Coffee Bean & Tea Leaf). The Border's relationship offers significant growth potential. Let's hope that TargetCast realizes the fullness of the opportunity.

* For additional information and insights on TargetCast's recent industry activity, I recommend reading Bill Collins' article "TargetCast Stands Out from the Pack Again" on DailyDOOH

TargetCast Moving Forward

In the near term, TargetCast will continue bringing Ripple under its umbrella, streamlining operations across the combined entity and rebranding all Ripple screens to TargetCast. With the new Ripple screen inventory, PRN will have even more ammunition to use in its negotiations with advertisers and media buyers.

I imagine that PRN's role as a strategic sales partner will mark the end of Ripple's local advertising partnership with "On the Go Media Networks." I guess there is a chance that TargetCast would keep the "On the Go Media" relationship alive for the sake of having them go after the enormous breadth of local businesses PRN won't touch.

It's also important to note that TargetCast's M&A activity might not be over. With an additional $6.5 million in the bank, TargetCast will use the funds to grow its staff (think advertising sales) and carry forward its industry momentum.

“In today’s world, you have to consolidate and partner. We’re talking to folks about a range of ideas," said John Hall, TargetCast CEO

Changing World of Sports Sponsorships

dbweinfeld@gmail.com (David Weinfeld) — Fri, 02 Oct 2009 21:05:00 +0000

"Sponsorships are not mile wide now, but mile deep. We are no longer buying properties just for brand image, but for activation." - Dan McHugh, VP, media, sponsorship and activation at Anheuser-Busch

"No longer can you take a bucket of dollars and throw them in a hundred different places; it's focusing on things that drive business. It's about insights. How do we really understand the person experiencing that sponsorship? How do we deliver value?" - Rich Lehrfeld, VP global sponsorship marketing at American Express

The quotes above emerged from a panel discussion on the changing landscape of sports sponsorships and event marketing. They typify a movement from brand building to driving engagement and activation. Instead of spending millions of dollars in the name of brand awareness, sponsors like Anheuser-Busch and American Express are shifting their focus to generating ROI. Gone are the days of simply plastering a company's logo on the wall of a professional baseball stadium and calling it a successful brand integration.

Companies committing to team, venue, and league sponsorship packages want to see the fruits of their efforts realized through product purchases or continued brand engagements. Advertising partnerships that were once cemented based on a brand looking cool or being featured in a flashy promotion, are giving way to in-arena campaigns that deliver tangible results. Team sponsors want to communicate with fans rather than being just another brand fighting for their attention.

Venture Capital, Private Equity, and the Digital Signage Industry

dbweinfeld@gmail.com (David Weinfeld) — Thu, 01 Oct 2009 21:13:00 +0000

Whether you're a long-term member of the digital signage industry or a new entrant, it's critical to understand how the investment market views our sector. While growth opportunities abound, there are countless casualties that litter the landscape of the digital signage industry. There are companies who predicted they would install 1,000 screens or more in their first year only to find that their estimates were off by a 1,000 or more. Resting in the graveyard of failed companies, you will find digital signage networks that couldn't secure any advertisers because they lacked any advertising sales experience to speak of. From under-capitalized networks with well-thought growth strategies to over-capitalized companies with no strategy, in its young existence, the digital signage industry has seen it all.

Many entrepreneurs venture into the digital signage space thinking it's a sure thing. Their mantras sound a lot like this: "You put up screens where a lot of people are. Fill those screens with nothing but advertisements; and wait for the cash to roll in." Such are the final words etched on the tombstones of digital signage companies that never ended up installing a single screen.

It's easy to get infatuated with the opportunities that digital signage presents. Some liken the industry to the wild west, championing the strategy of grabbing up screen real estate wherever you can find it. Even though securing the right location partners and screen placements are integral to any DS company's success, they make up but one piece of the industry puzzle.

The digital signage industry is not a "get rich quick" market, but rather an emerging media sector that requires significant forethought, sound operational framework, strategic management, advertising sales experience (you would be suprised how many network's don't), and patience for advertisers and media buyers to recognize the strength of our medium. On top of all this, any company that wants to achieve success in the digital signage industry must be well-versed in a plethora of other market dynamics, including how the industry is viewed by the whole of the investment community.

Thankfully, there's a conference on the horizon designed to give you the necessary background, tools, knowledge and insights to be best positioned to garner success in the digital signage industry:

Strategy Institute's 4th Annual Digital Signage Investor Conference

Despite the current financial environment, the digital signage industry continues to stay energized. The seeds for growth, acquisition, and consolidation are being laid. Attend The 4th annual Digital Signage Investor Conference, being held on October 6th and 7th, 2009 at Embassy Suites, New York City and learn how to Source Funds & Invest Wisely and take the insights on: Mergers & Acquisition, Business Models, Valuations, Financing, Opportunities & Risks, and Forecasts.

This two-day conference is a must-attend event for industry leaders to network and gain valuable information on the digital signage industry. Hear from leading analysts on what the future holds for out-of-home media, digital signage, and digital billboards. Gain insight on industry mergers and consolidation. Hear from media leaders on out-of-home media adoption, content, creative, media planning and buying. A key issue in the digital out-of-home industry, particularly for ad-base networks, is that of audience tracking and measurement. Hear from key decision makers on how audience measurement efforts can influence media buying and planning decisions, and much more.

Learn from the industry leaders including:

Beth Ann Kaminkow, President & COO, TracyLocke
Rob Gorrie, President & Founder, Adcentricity
Jeff Bell, Chairman, Domedia
Tom Blaisdell, General Partner, DCM
Andy Querin, President & Chief Operating Officer, ZOOM Media (Canada)
Suzanne Alecia, President, OVAB
Ajay Chowdhury, CEO, EnQii Group
Keith Kelsen, Chairman, MediaTile
Lon Otremba, CEO, Access 360 Media
Matthew Stoudt, CEO, Outcast
And more...

This years conference includes Speed Networking Sessions

Tables will be set-up with quick five-minute rotations to help you break the ice and meet your potential business partner. Bring your business cards, make the right impression and continue your interaction at lunch if the fit is right! Investors: Find the “diamond in the rough” Digital signage companies: Raise money to take your company to the next level Intermediaries: Connect with industry players who need your advice. Be at the center of action and lay the seeds for strategic alliances.

For the full list of speakers and more information on this valuable conference, visit http://www.strategyinstitute.com/100609_dsic4/dsp_speak.php

Contact:

Yashod Bhardwaj
Project Manager
Strategy Institute
New York
Toronto
1-866-298-9343 x239
bhardwaj@strategyinstitute.com
http://www.strategyinstitute.com/