Sales boost, the digital way

Digital signage is the use of plasma or LCD flat panel displays or normal monitors to display advertising, corporate communications and other information, which was traditionally displayed using other media. Digital signage has the potential to change retail operation in terms of how it communicates to customers, educates them, motivates them and if persuasive enough, even closing a sale. With a digital signage network, the possibilities are endless for capturing and focusing consumer’s attention.

Meaning and application

A digital sign is interactive and allows sign content to change on a continuing basis. Its content can be transmitted electronically and functions in real-time when needed. It also provides full motion video or graphic animations.s

Digital signage makes it possible to quickly assemble a creative programme. For example, during hot summer days, a retailer can show full-motion video of a new line of bathing suites, rotating each suit to show it from all sides. Similarly, a specialty retailer selling designer clothes can display an assemble outfit, including top, pants, shoes, chic new designer bag and scarf. The new signage network allows retailer to connect directly with consumers, increase brand awareness and generate a new revenue stream from the sale of advertising space to manufacturers and brand marketers.

Samar Singh Shekhawat, VP, Marketing, Spencer’s Retail, opines, “Quite effective this media is with shopping and with significant airtime dedicated to store offers, the medium works as instant informer, at times, influencing shoppers, thus, making it a key sales driver. Our in-store television network, run by TAG Media Network, provides customers with relevant and helpful information to reach the goal of giving outstanding shopping experience to our customers.”

Network for multiple locations

For implementing digital signage in more than one location would need large scale networks. These networks are usually built on enterprise IP infrastructure, which is designed to distribute content to multiple locations over large areas. Organisations that deploy large scale digital signage already have an existing network to get into a partnership, where the partner would take over the network and ensure that the content is successfully sent and is running on all screens. Also, the user has the option to use internal department, which will be responsible for hosting and managing the network.

Working of digital signage

A typical digital signage installation consists of the following:

• High-definition digital display: Examples include LCD monitors, plasma displays and projectors. Currently an average 42” LCD monitor costs around Rs 50,000.
• Media player: Media player console can be a regular PC or a small form factor PC that has standard Operating Systems. The remote player software connects to a content server from where it receives new files, instructions for updation and deletion etc.
• Digital signage software: Digital signage software allows one to manage unlimited number of media players spread across a wide geographical area.

International usages

Wal-Mart, the big father of retail marts, has the largest number of digital signage in its store. Inside the Macy’s flagship store at Herald Square in New York, the Calvin Klein menswear boutique is distinguished with a large video wall of integrated screens. 7-Eleven in Denmark increased its coffee sales by 30 per cent and packs of Danish pastries by 59 per cent after installing digital signage.

Digital vs traditional

The benefits of digital signs over traditional static signs are that the content can be exchanged without effort, animations can be shown and the signs can adapt to the context and audience, and can even be interactive.

Adding Value: Traditional posters are static and can only convey simple messages. Customer only read it in a few seconds. The digital signage network has the possibilities of entertaining, informing and adding more value to the products.

Attention Seeker: Digital signage technology is unique in its capability to display dynamic images in full colour and full-motion video format. Images are bright and clear, and can also develop “storylines” that hold a viewer’s attention for more than a glance.

Quick, Easy Content Updates: The deployment of digital signage enables a retailer to quickly get updates of the content. Communicating on digital signage network, retailers can profile their audience ahead of time and put up the right message at the right time and right place.

Investment involved

Digital signage installations can take the form of scrolling message boards, plasma screens and large projection screens. On an average, a single store with 2 LCDs will require a capital investment of about Rs 1.75 lakh, including hardware, software and installation. Recurring costs are mainly related to bandwidth and content creation / management costs, which can vary depending on various factors like frequency of content updation, size of files, content creation etc.

Parbhu Venkatesh, Business Development Officer, 3M India Ltd, says, “Although the initial investment is high, the potential for recovering the investment in a short time frame is very promising.”

Awareness in India

Wal-Mart may have the world's largest digital signage network, but in India, retailers are just waking up to the immense potential offered by these dynamic signboards. Besides the Indian railways, Spencer’s super market and the international airports at Bangalore and Hyderabad are a few areas where digital signage services are working.

Shekhawat shares, “It is a relatively new technology and media is approximately two-year-old. Based on the research conducted by TAG, the feedback is excellent (75 per cent of our customers enjoy the network as opposed to only 5 per cent who do not and 20 per cent are neutral).”

Venkatesh opines, “Network signage has been rolled out in India since early 2005. One of the first large scale rollouts of digital signage in India was by Tag Media across the Spencer’s retail chain in early 2006. Apart from Spencer’s, Food World, More and Reliance Fresh have over 500 plus stores across India which run digital signage in association with media companies like Tag Media, OOH Media, and others. In the leisure industry, several restaurants like McDonalds, food courts in malls have digital signage networks in association with companies like Laqshya Media, DSN and Live Media.” Susmita Misra, VP, Marketing Services, Subhiksha, informs, “We do not use any digital signage in our stores. Our Glow Sign Boards (external signage) are made using Vinyl pasted on Flex. These are backlit. The entire focus is to improve the visibility of our stores and make it easy for customers to access them.”

Challenges ahead

Digital signage has been limited to isolated content, usually videotapes and DVDs that play the same content over and again. Creating and updating contents is a real challenge. That should match according to the objective of the message. Size and frequency of content, types of content are some of the real challenges associated with digital signage operating. Many digital signage experts agree that large scale digital signage deployment comprises a network of 20 or more screens that are installed in more than one location. One of the immediate challenges involved in operating digital signage on a large scale is that the signs have to be networked. Fortunately, now companies have developed solutions for that, but in India, the solution is still catching up.

Annotation

From small boutiques to large-scale departmental stores, all types of retailers can engage customers with more creative digital applications, thereby, adding life to the brick and mortar locations with a vivacious media display.