The Digital Signage

Opportunity
or
The Attack of
in--Store Marketing
in
Barry Wise – Principal
Wi Retail
Wise R t il Consultants
C lt t
Joe Finizio
Executive Director
Retail Solutions Providers Association
Macro Market Transition

• Define Change/Drivers
g
• Outline the Opportunity
• S t
Systems Topology
T l
• Overview
O e e the e So
Solution
u o
• Specific Examples
• Q&A
What Drives Change?
Desire
Creativity
Need
I
Innovation
ti
Investment
What’s
What s Driving the Change in Marketing?

• Convergence of technology
– POS, Kiosks, Digital Signage
• Availability of affordable hardware
• Changing social habits
• Competition – Driving the need for more
information
• More Information - Driving the need for
better information management
g
The POS Information Evolution

• Cash Control
• Labor Control
• Inventory Control
• Supply Chain Management
• Integrating of in
in--Store Marketing and
Merchandising Management
 The Ad Marketplace Evolution
• Convergence of market
forces and technology
¾Tivo, the Internet, iPOD, Media Phones
¾ Stores are being viewed as an advertising medium

¾ in-Store Networks are gaining acceptance

¾ Trend to advertise where the shopper is shopping

¾ Further convergence with in-Store technologies

Advertising/Marketing
Expenditures are
moving away from
traditional media
Chaos Declared in the Advertising World
Wall Street Journal – Front Page
9/21/05
Market Reach… for the
Top 10 U.S. Retailers

197 million unique visitors/month

66% of U.S. population
in Store Marketing
in-Store
DNA …is Changing
g g
 in Store Marketing
in-Store
DNA …is Changing
g g
• While people may point to
TIVO or the Internet
Internet…
• The way people gather
i f
information
ti iis changing…
h i
• Pull information you want at
your schedule or…
have it pushed to you at the
network's schedule
Changes in Marketing
• Changes in marketing practices are
g changes
driving g in Retail Technology
gy
• These changes are affecting all vertical
markets
• Some Vertical Markets more quickly
than others
• These changes – In Marketing require
changes
h iin th
the store
t
– More technology
– Information integration
 The Opportunity

• $900
$900+ Billi
Billion iin annuall
U.S. Marketing
Expenditures

• In 2005 $18 Billion

was spent on in-Store
marketing

• in-Store grew to over

$20M iin 2006
Market Growth Projection
• 50% annual growth in total number
off displays
di l at-retail
t t il 2009
• 90% of retail chains will have digital
signage networks by 2011
• Annual Advertising Revenue for
in-Store networks will surpass
$1 Billion by 2007 growing to
$3.7 Billion by 2011
Source: Frost and Sullivan
In Store - Digital Signage Business Models

• Advertising Supported Networks

– Large retailers – Wal
Wal*Mart,
Mart, Target, Best Buy
– Critical mass / Market reach is key
– Capital intensive business
• Retail-Lift Supported
– Digital signage as part of at-Retail Marketing
– Lift in product sales provides ROI
– Projected to drive the majority of the market
growth – although still being debated
• Combined
At-Retail Digital Signage Business Models

• Advertising Supported
• Retail-Lift Supported
• Combined

• Opportunity for Kiosks & POS

– Inter-active
– In stores today
– Need to connect the dots ….
– T
Transaction
ti processing
i tto…. Interactive
I t ti Marketing
M k ti
 Digital Signage – System Topology
Development Data Transport On-Site Locations

Internet via
Marketing / Ground or
Merchandising Satellite
Services Router /
Receiver
Content Network Server
Creation &
Video
Services Administration
Server
Services
Content
Administration
Server/Services
 Digital Signage - Market Trend

Network Operations,
Advertising and
Merchandising
Services

Traditional Support
Services

Hardware and
Software

• 2005/Current Digital Signage Revenue is valued at $452M

• Projected growth to $1.3B
$ by 2009
Digital Signage Implementation Examples
Super Market Check-out In-Store Specials

Digital Menu Boards Hotel Guest Information

Casual & Quick Service Restaurants

Wendy’s
Wendy s Minneapolis
Juice Bars & Coffee Shops
Boost Juice Bars in the
U K Installed a single
U.K.
screen with 3M software
– to advertise the latest
product offers
Hotel / Lodging Check in/out
Hotel / Lodging Guest Information
Information Walls
The Missing Link !
• POS and In-Store Marketing…Together?
• Traditional advertisers are searching for
for…
Traditional CPM Measurement Metrics
• POS - Provides Item Movement
• Isn’t it about selling more product?
• Schering–Plough – Looks at Store POS Data
• XML PlPlay-Log
L St Standards
d d ffrom ARTS
• DS-IQ – Links POS and In-Store Digital Signage Data
• The Integration of in
in-Store/Retail
Store/Retail Marketing
into the Enterprise - Has Begun!
 The Challenge
The Drivers
• Marketing dollars are transitioning to
in-Store Marketing
• Traditional Advertisers and Retail Technology
have not yet become connected in the enterprise

Call to Action
• Research the in-Store Marketing Transition
• Identify Opportunities related for Your Business
Don’t Be Afraid…

Get Educated and Get Connected!