Blog: Stuart Armstrong 

Stuart Armstrong (bio)
President Americas
ComQi

Tuesday, 03 August 2010
Throughout the ages, the idea of venturing into the unknown has been too frightening for most people to deal with. One of my favorite examples is of early cartographers using sea monsters on maps to depict the realms of the uncharted. As scary as these images are, they were found to be more comforting then the thought of not knowing what was out there. However, explorers looking for adventure, fame and fortune could not be stopped; they moved beyond the boundaries and, in the process, discovered a new world.

The analogy may be a bit over the top when describing today’s voyages from the old world of traditional above-the-line advertising (TV, print and radio) to digital out-of-home media, but there are some entertaining parallels.

First are those pesky sea monsters. There has been a lot of talk on industry blogs and group chats about the possible early demise of digital signage. One that I found particularly interesting was a Digital Signage Universe group on LinkedIn called “Is Digital Signage dying already?” Lionel Tepper, managing director of Digital Signage Universe and one of the more knowledgeable industry contributors, and other smart folks chimed in on this topic. The general consensus is that digital signage users equipped with a new set of media tools and business models are finding success. They are the ones thinking of this as a media play underpinned by strong technology, not as a technology play where content is an afterthought. They also tend to find ways to engage viewers with multiple media touchpoints. This is where they turn a glance medium into real consumer engagement.

Exercising mobile marketing applications such as SMS, Bluetooth, Microsoft Tag or Interactive Voice Response (IVR) can be a game changer where CPMs go from $5 to $35-plus. Check out what companies such as LocaModa and Never.no are offering. Also, it's worth checking out how Foursquare, a location-based social networking app, is working in conjunction with digital signage to deliver very sticky engagement.

While the soft economy is certainly not helping the industry’s progress, growth is still happening. PQ Media’s Global Digital Out-of-Home Media Forecast 2009–2014 cites a projected 5.7 percent growth, down from 17.2 percent growth from 2004–2009, but still moving in the right direction. iSuppli, a global leader in technology research, is pointing to  25 percent growth of worldwide shipments of LCD and plasma screens for use in digital signage and professional displays in 2010. Add to that the recently published Digital Place-Based Video Study 2010 where the folks at Arbitron found over two-thirds of American teens and adults have seen a digital screen in a public venue in a 30-day period and over half within seven days. More importantly, almost half of those that saw the screen remembered what was on it, and almost 20 percent actually made an unplanned purchase after seeing the item featured on the screen. In my book, growth and results equal signs of sustainability.

So with all this good news, why are some writing the industry’s eulogy? In going back to my analogy, many of the explorers have not designed their ships to get to the new world. In other words, their business models don’t take advantage of the communication and money-making power of digital place-based media. Two points come to mind.

Move from reach to relevancy

Old world media thinking prescribes to communicating over a mass medium, such as television, to a large audience and hoping you get your message to stick with some percentage of the viewers, and typically a very small percentage. But digital out-of-home is about place-based relevancy. That means your content has to earn the eyes and mind of your audience. Don’t think you are going to accomplish that by just putting up TV show trailers between advertisements. If you want to see an example of how this is done right, Care Media Holdings is a network that attracts advertisers because they can demonstrate that they're engaging the target audience. Check out the content on any of their three networks (KidCare, PetCare and Woman’s HealthCare), and you will see what I mean.

Get the brand into the viewer’s pocket

This new world of customer engagement is an active world that, for the most part, exists out of one’s home, where consumers are not passively sitting on their sofas in front of a TV. They are on-the-go to school, to work, to the movies, to the doctor, to the store with the venue type and the viewer’s frame of mind coming together to create engagement opportunities. Consider how content on a kiosk, digital signage or smart phone can motivate someone to engage with a brand and possibly even opt into a branded community. If you have an ad-based model or are a venue owner, don’t limit your thinking to a single technology channel; design your programs with touchpoints that engage your intended audience and increase your chance of success.

Today’s media pioneers are charting the course to the new world. With researchers establishing audience-measurement standards, media planners and brands paying for real engagement, investment and analyst communities getting behind this industry and content providers getting innovative about how to produce smart and affordable content, we have an industry that is sure to be large and sustainable.
Posted by: Stuart Armstrong AT 03:08 pm   |  Permalink   |  1 Comment  |  
Thursday, 25 March 2010

Retailers and brands alike are looking for ways to create ‘stickiness’ with their consumers. The days of your competitors being a nice, definable list of the usual suspects are long gone. Brands (I include retailers as brands as well) need to consider all the various product and trade channel alternatives that consumers have nowadays.

National brands with their large advertising budgets are creating energy for a category of products, but does it translate to buying their product, or do consumers then "shop" the category and make an alternative brand purchase? National brands relying on just TV advertising, to my way of thinking, are "preaching the gospel" but another brand might be "passing the collection plate."

That is why stickiness is so important for a brand; stickiness that stays with a consumer from the sofa all the way to the shelf.

In my capacity as president of the Digital Signage Association and president of a leading digital signage supplier, I continue to encourage users of this powerful communication medium to think beyond the screen. How can this medium do more than simply communicate a message? It has to be more than just a moving image replacing a static print sign. That is when I ask people to think of digital signage as an "on ramp" that invites the consumer onto today’s digital consumer highway. This is especially valuable for high-ticket items that don’t fall into the impulse category of purchases.

Let me take you on a consumer journey in an attempt to illustrate my point.

You are a 30-something male and intrigued with the idea of buying a gaming console. Other than knowing that there are several brands (PlayStation, Xbox and Wii), you are not sure what is right for you or if you should even be buying one. You might ask yourself: is it a waste of money? How will my wife and 8-year-old daughter like it? Can I get the family involved?

During your next visit to your favorite consumer electronics store, you are struck by the cool ads for games on the store's digital signage displays. You give particular notice to a spot showing the latest exercise game. The spot invites you with an SMS to enter a sweepstake for a free Wii. Given that you are not rushed and have an interest in the category, you take out your phone and in less than a minute you’ve entered the drawing with a confirmation email that asks if you’d like to get more information on the Wii and the Wii-compatible games. You tap "confirm" (that is called a "double opt in") and you are now part of the Nintendo community and its marketing database.

Nintendo and all other major brands know the value of marketing to individuals who have expressly given their permission to do so. Permission-based marketing is very popular because the conversion rates are significantly higher than just scattergun approaches to getting their message out.

In the above scenario you left with the Nintendo brand in your pocket. How powerful is that?

That is just one of many ways in which digital signage can change the game for retailers and brands. Smart retailers are designing their cross-channel merchandising strategies to leverage the in-store experience, so that shoppers think about their brand outside of the brick-and-mortar retail store. Shopping happens everywhere now: on the web, on the phone…everywhere. So when consumers are viewing your clients' digital signage networks, use the amazing power of digital signage to invite them to put their brand, or their advertiser’s brand, in their pocket.

Posted by: Stuart Armstrong AT 12:58 pm   |  Permalink   |  0 Comments  |  
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