On Monday November 9th in NYC the Digital Signage Association held its 4th and final board meeting for calendar year 2009; many thanks to KioskCom / The Digital Signage Show for their support in furnishing a meeting room for DSA to hold its board meeting.

The association’s board of 41 member companies is at approximately 10% of our nearly 400 members and represents the 5 constituency groups of End Users, Vendors/Researchers, Integrators/ProAV, Networks, and Agencies. This broad industry representation enables DSA to drive decision making that takes into consideration the full value chain of a digital signage network from design and launch through on-going monetization of the network whether it is an ad-based, retail/venue-owned, corporate communications or a hybrid.

This perspective brings enormous value to the key initiatives that DSA are taking on such as industry education, ROI measurements, and content efficacy. As the current president of the DSA I was very pleased with the level of enthusiasm, passion and participation … in short the ownership … that the board members have assumed around these topics.

However participation didn’t stop there; as a matter of fact the most passionate discussions were around the topic of the DSA’s 3-year planning process. More specifically, how does the association continue to offer tremendous value to its membership and ensure that we contribute to the growth of a sustainable industry? Tantamount to where we are going is the question on how fast we can accomplish our goals. The discussion quickly moved to a fundamental question. What are our future sources of revenue that will ensure we have the requisite financial and staffing resources needs to serve our membership and the industry at the desired level?

Participating in the building of this plan will be some names that you are familiar with:

• Dick Good, DSA Chairman (CEO, Networld Alliance)
• David Drain, DSA Executive Director
• Stuart Armstrong, DSA President (President, EnQii North America)
• Jeff Porter, Committee Co-Chair Education (Executive Vice President, Scala)
• Margot Meyers, Committee Co-Chair Education (Direction of Education & Training at Platt Retail Institute)
• Keith Kelsen, Committee Chair Best Practices (Chairman of the Board - The MediaTile Company)
• Tim Burke, Committee Chair Marketing and PR (CEO / Owner, Electronic Art)
• Greg Masingill, Committee Chair Membership (President at Seneca Data)
• Steve Nesbit, Committee Chair ROI (COO & President at Reflect Systems, Inc)

Additionally several other board members have expressed an interest and will be included in the planning committee.

I am thrilled about both the process and the outcomes of this planning process. We will be meeting as a planning group for the first time in a conference call within the next 4 – 6 weeks following for first in person meeting in late January / early February 2010 for a full day session. As plans and details unfold I will keep you up to date as part of my DSA blog contributions. Keep an eye out for some interesting updates in the months to come.  

The Digital Signage Association will be celebrating its second birthday this month. Like a promising toddler, the DSA is learning a great deal about how to socialize, how to move on its own and to start to speak. As a matter of fact it is showing some early signs of being really exceptional. As the first president of the DSA I have been proud of the development that has occurred especially in light of a tough economy where budgets are tight and company resources are stretched.

During the last year the DSA has grown from 133 members to 386.

Why is this?

Very simply the DSA has shown its commitment to its membership and to the industry as a whole. It is effectively giving its member companies a powerful forum to create awareness, collaborate, learn and influence. For what are modest membership fees, member companies appear to be getting good value. But the ones that are really getting value are the ones that are contributing beyond just their dues.

The DSA membership, especially the approximately 40 board members, are playing an important role as it takes on topics such as content best practices, ROI analysis, and future digital signage trends. One of the most important in my opinion is the Education Committee expertly co-chaired by Margot Meyers of the Platt Institute and Jeff Porter of Scala. As part of the upcoming DSA board meeting in NYC on November 9th, the committee will be presenting their recommendations.

I had an opportunity to preview these recommendations during this week’s DSA executive committee meeting and I have to say, I was both impressed with the work and excited about the implications it offers to the industry. Findings from an industry survey conducted by the committee in August indicated what I think we already knew, that education in all aspects of digital signage from technical and content to operations and measurement is needed in the industry. Although several very smart and committed educators have picked up the education mantle, a guiding framework for these reputable courses may be needed; this brings about the potential for an industry certification program. When you combine this education initiative with advocacy and networking, the other two pillars of the DSA, you can understand the potential of the organization.

Furthermore, DSA Chairman, Richard Good, will outline for the board specific plans for the DSA’s three year plan designed to assure continued progress. Member feedback and refinement to strategic plan will set the direction of the association. This is just two of many extremely substantive topics that will be discussed at the upcoming board meeting.

Are we where we want to be? No, but I can tell you the organization it is on its way to ensuring that we have a sustainable industry with a healthy and collaborative culture.

So at the early age of two years old the DSA is learning to talk … and even more important it is becoming a strong voice for all of us working and developing careers in this emerging industry.

Okay, so I'm not as clever as David Letterman, but on the other hand, I am hoping that my list will be more useful, at least for those looking at the design of a digital in-store media network, aka, in-store TV.  
 
Since the advent of the first in-store TV network earlier in this decade, much time and talk has been given to finding the right model for digital signage at retail.  Early designs have brought about mixed results. Much of the criticism came from shoppers who either resented more ads being pushed at them or, at the very least, felt it was a nuisance.  
 
Many of these early in-store TV models weighed heavily on funneling some above-the-line brand advertising dollars into retailer coffers. And to avoid conflicts with co-op and trade dollars already tapped from supplier brands, many of the ads were from brands not even sold by the retailer and therefore out of sync with the shopper's mind-set.  Do I really want to see a car advertisement when I am buying my groceries? I think not.  
 
While advertising revenue remains a viable consideration when retailers design their in-store TV network, programming it should not be the dominant reason for its existence. And when it's done, brands should be selected that are relevant or entertaining to the shopper. For example, if a major pet-supply retailer ran a trailer for the Disney release of "Beverly Hills Chihuahua," I am confident shoppers would see that as an enhancer to the shopping experience.
 
Before I get into my top eleven reasons for a retailer to implement a digital in-store media network, let's look at what has contributed to this trend: Wal-Mart & Tesco TV.
 
Both retailers deserve a lot of credit for being early movers in this area.  The experiences gained, with a few bumps along the way, have made the path smoother for future implementations. Over the last year both retailers have launched next-generation designs that have incorporated several key modifications.  

-    Lower the screens to get viewing down to shopper sight-lines.
-    Evaluate the shopper journey and place screens in locations where they can easily be seen.
-    Place merchandise in close proximity of the screens so shoppers make the connection and it can better influence the purchase decision.
-    Manage the audio so that the soundtrack is shopper and store employee-friendly.
-    Align length of media spots to complement shopping traffic, emphasizing brevity with 5-second spots in traffic areas.
-    Present content that focuses on the shoppers' mindset, needs and demographic.    
-    Invite shoppers to purchase promoted products with strong call-to-actions.
  
Now with the road ahead having been traveled by several major implementations that have helped define best practices, retailers can now approach this shopper marketing and communications medium with greater confidence.  
 
So whether you are taking the plunge with a full rollout or designing a pilot to test the performance within your environment, I encourage you to consider the following benefits.  Then design the implementation and content programming to generate the results you want to emphasize.
      
#1. Enhance the shopping experience

Shoppers vote with their feet, a positive and enjoyable shopping experience helps to develop a loyal patron.  When digital in-store media is properly executed, the shopper reaction is very positive.  

- According to OXT's (Online Testing Exchange) July '07 Study, digital signage catches the attention of more people than any other comparable advertising medium and was found to be more entertaining than any other except TV.

- According to Arbitron Research (9/04 Study), more than three-quarters (+75%) of retail video viewers find the screens helpful, 42 percent of retail-video viewers would prefer to shop at a store that has video displays versus one without.

#2. Increase in-store conversion and product sales

Retailers are in the business of selling goods, plain and simple.  Digital in-store media networks are now proven to move the sales needle.  Many studies from researchers such as OXT, The Platt Retail Institute, Forrester, Nielsen and Arbitron now empirically show the influence on sales.

- According to Nielsen Research (9/06 Supermarket/Grocery Consumer Behavior Study), "68 percent of those surveyed said in-store messages would help sway their product purchasing decisions. Further, 44 percent said they would switch a product they previously intended to buy for one being featured."

- According to Arbitron Research (9/04 Study), "Nearly a third (29 percent) of retail-video viewers have made an unplanned purchase after seeing a product featured on the in-store video display."

#3. Build your store brand

To counter the "sea of sameness" between competing retailers, many are putting increased emphasis on their own store brands. In-store TV can be a powerful communication and promotional medium to convey the in-store brand essence and value.   

#4. Reduce perceived wait-time for customers

Whether it is in a check-out, pharmacy, or service desk queue, or simply waiting for your wife to try on another blouse to go with a new skirt, no one is a big fan of waiting.  If you can reduce "perceived" wait time you win. According to a study done by BTV+ "Virtually every use of digital signage display generates . a 40-60 percent reduction in perceived wait time."   

#5. Drive traffic to your Web site  

Leveraging both the in-store and web-based shopper touch-points, "Clicks and Mortar", to drive sales and loyalty is now an essential part of many retailers strategies.  In-store TV is a digital on-ramp, an opportunity to introduce to your shoppers your on-line presence and promote cross-channel engagement.   

#6. Strengthen relationships with your community

"Narrowcasting" capabilities of this medium enables you to pinpoint unique messages down to the location (even more granular day-part by screen).  Take advantage of that by serving up content that connects at a local level.  This can be as simple as local news, weather, collage and high-school sports, and community sponsorships.  Put some teeth into your "we are a part of the community" messaging.  

#7. Reduce point-of-purchase expenses and in-store clutter

Clutter and environmental conservation are two issues that often go hand-in-hand, and retailers are grappling with ways to ensure shoppers get their messages while not having their stores look like a used car lot on President's Day.  Digital media that attracts more attention than static signs can help to clear up those aisles while lowering the costs related to printing, shipping, in-store compliance and disposal.  It also supports more frequent and targeted messaging, which is not practical with traditional static signage.   

#8. Improve employee communication and training

Retailers are very aware of the high cost of employee turnover.  One of the most formidable challenges retailers face are 80 - 120 percent turnover of in-store personnel.  The cost of hiring and training combined with the cost of poor customer service is enormous.  
 
Retailers realize that they can "sweat the asset" of a digital in-store media network to improve employee communications and lower turnover rates.  Off-hour programs can pay huge dividends: daily team message, customer service and sales techniques, career profiles, product safety and recall information, and straight-forward training content that support the store manager.  Some retailers are even looking to their supplier community to sponsor training, for example "Speaking to shoppers about pet nutrition brought to you by Iams," making them a revenue generation source as well.     

#9. Strengthen your mobile marketing/loyalty program

Retailers are addressing a new breed of shopper. A shopper who has ready access to all sorts of information, who can stand in your store and do competitive price comparisons or look up consumer product reviews on their mobile devices.  Their shopping list, their coupons - virtually everything - can be accessed via that mobile device.  

Conversely, you can reach them with useful information such as promotions, event updates, and last-minute over-inventory blow-out sales through this device. However, there is a delicate line between annoyance and attraction when it comes to a device that is regarded as highly personal as a person's mobile device.  

Therefore, people need to explicitly opt into a program.  Like e-commerce, digital in-store media can be a powerful way to promote adoption and begin to grow that highly coveted mobile marketing list of shoppers.  

#10. Influence inventory and supply chain efficiencies

One of the most powerful benefits of this media is to do just-in-time messaging and leverage its ability to drive incremental sales to move over-inventoried product at the specific store level.  Take, for example, women's apparel. When the next season's fashions are due, last season's line starts to make its way toward the back of the store, getting markdowns along the way.  
 
Pre-markdown, heavy-up promotion of that line in the stores with excess inventory, thus selling more product at full margin.  This also applies to product over-inventoried at the distribution center, using the digital in-store media to pull product through the supply chain.

#11. Generate new revenue by selling advertising space

Why #11?  Because where 1-10 address core retail operating and promotional considerations, this point is outside of a typical retailer's traditional competencies. It is also not for everyone, retailers with all store brands or a heavy emphasis on their brand and shopping experience may feel that any level of advertising fights with their marketing and décor.  
 
For many, the right model is a hybrid that brings in appropriate and viewer-minded advertising.  When it is done right in can be a powerful incremental revenue generator.  Studies are showing that out-of-home video advertising network spending in the US reached $1.28 billion in 2007 and are projected to reach $3.22 billion by 2011.   Do it right and you can get a piece of this action.  Do it wrong and your shoppers will have a piece of you.

EnQii president says digital signage product in consumers' hands and money in merchants' wallets

Stuart Armstrong, president of EnQii Americas, explains how conversion is a key metric for retailers. This involves getting consumers to walk out of the store with at least one item, if not more. Can digital signage make that happen? Find out in this two-part video series.

Part I:

Part II: