1. http://www.dailydooh.com/ Status And Best Practice European Digital Signage Adrian J Cotterill Interim Executive and Industry Analyst Specialising in Digital Out of Home and Web 2.0 Co-Founder DailyDOOH and WeAreON.com

2. 2 Italian Farmacia.TV Primary Target Audience is Media Owners, Media Planners, Media Buyers, Brands, Advertising Agencies, VCs, Angel Investors, Corporate and Retail Investors Actual Readership is (all of the above +) Industry Execs, Screen Network Owners, Hardware and Software Suppliers, Journalists, Content Agencies, and Conference Organisers Visitors come from 88 countries/territories and include the United Kingdom, United States, Canada, Spain, India, Netherlands, Germany, Israel, Australia and France (the top 10 visitor locations for 2008). We write 6 days a week The graph shows how prolific our research teams are. Since 1st January 2008 - 500+ articles, an average of 5.51 posts a day!

3. 3 Definition of Digital Signage  “A network of displays that can be remotely managed and whose business model revolves around merchandising or advertising”  Source: Frost & Sullivan Also Known As / Seen As  Digital Out of Home  In-Store TV  Digital Screen Media  Captive Audience Networks  Retail Media Networks  Screen Networks  Narrowcasting  Place Based Media  Digital Street Furniture  Shelf Edge Labels  Video-enhanced Shopping Carts  etc. Network Types  Self Financed / Branding  Financed Through Advertising / Advertising Only  Mixed / Hybrid

4. 4 High Impact  General Outdoor  Billboards, Posters  Stadiums / Exhibition Halls  Mobile  Airports, Railway Stations

5. 5 Retail  High Street Retail  Grocers  Shopping Malls  Petrol / Gas Station Forecourts  ATMs

6. 6 Captive Audience  Leisure, Pubs, Clubs, Bars  Transport, Taxis, Trams, Buses  Hair Salons  Waiting Rooms  QSR (McDonalds, Starbucks etc.)‏

7. 7 Pub, Club, Bars Shopping Malls Corporate Offices Outdoor ‘High Impact’ Billboards Hotel Rooms and Lobbies Stadiums University, College, School Corporate Reception Areas Theme Parks Race Tracks Grocers Real Estate Classifications Advertising Classifications Mobile Vans Mobile / Portable Screens Highway Signs Airports Railway Stations Taxis, Trams, Buses High Street Retailers Control Rooms Financial ExchangesFilm Sets, TV Backdrops Retail Banks Petrol Stations Hair Salons Government Buildings Hospital, Waiting Rooms, Surgeries Casinos Studios Restaurants Rental / Staging

8. 8 Content For Profit Do customers remember the advertising they see on the screens? Does advertising on your network increase brand perception lift? Does the advertising prompt unplanned purchases? Normal Commercial Rules Apply!! Shoppers are conditioned to move through stores, not to stop, look and listen, some examples...  VMG / CCUK 10 Seconds  Neo Advertising 15 Seconds in Food Courts, 7 to 10 seconds elsewhere  Tesco Screens 5 Seconds  Eye Corp 7, 7, 7 and 3

9. 9 European Activity 2001 – 2007  Netherlands  United Kingdom  France  Scandinavia  (Emerging Markets)‏ 2008  Germany  Netherlands  United Kingdom  Scandinavia  France  Turkey  Spain  Poland  Greece  Italy

10. 10 Retailers in Europe :(  Legacy Music Systems meant legacy music providers, meant sometimes poor / token Screens, disjointed rollouts  Lack of IT involvement in projects meant Screen Network providers / aggregators moved in  Tesco TV slowed grocery rollouts :)‏  Retail downturn has meant more focus on quality and ambience ('retail theatre')‏  Neo Advertising doing a great job in Retail (and Malls)  Tesco Screens has got grocery sector excited (again)‏

11. 11 Legacy Offline Screens You have Screens 1, but can you guarantee…  that they are turned on?  that they are playing relevant content? You have Content 2 but can you…  target your customers by time of day or week or make seasonal variations?  sell what you have, not what you think you have?  sell more of what's selling not what's not selling? 1 JML for example; typically 20-25% are off at anyone time AND there is probably an equal number playing wrong (irrelevant) content versus what is in stock 2 European Research studies have shown that digital marketing and advertising consistently; shrink wastage, quickens turnaround for promotion to venue, decreases printed POS in-venue clutter, gives the ability to communicate multiple messages from one ‘poster’ site AND offers the possibility of 3rd Party Advertising / Media Revenue (if desired)‏

12. 12 Industry Problem = IT Opportunity Content Delivery (is it Guaranteed?)‏  Compliance for Digital Signage and Screen Networks  Relevance with regard customer habits, buying patterns, stock levels, time of day etc.

13. 13 Imitate The Norm It's not Television  Think Poster+ / Animated Posters rather than TV- It's not (actually) Digital Signage  Digital Out of Home is a Content Delivery Business  Think of the 4 th Screen, whether that be mobiles, Kiosks, Interactivity etc.

14. 14 Content Delivery Roadmap Note: Poor graphic quality due to Screen Shot

15. 15 Note: Poor graphic quality due to Screen Shot

16. 16 wrong adverts embarrassing brand collision wrong colour schemes can't choose music no interactivity no ambience presenter led family values wrong language bad language Why wouldn't you (just) play MTV in your Retail Environment?

17. 17 Cost Reduction of POS (print and delivery)‏ Instant customer “message - action“ Brand Enhancement; adds another dimension to customer experience during visit Time of day content targets specific types of customer (propensity to purchase)‏ Centrally controlled campaign management tools Brand relevant “feel good’ editorial content Third party brand partnership activity (media revenue)‏ Why Retail Digital Signage?

18. 18 Trends  Screens won’t be (traditional) Screen Shaped  Device based signage solutions will start to prevail  Digital Street Furniture  User Generated Content (UGC) Predictions  Bluetooth as an out of home medium will die  Major Cities will have issue with Visual Clutter  People will see digital out of home as the industry to be in Further  Why build when you can buy, why buy when you can rent?  EPOS based Networks  Shelf Edge Labelling  Wi-Fi (should be free) / WiMAX  Active Digital Signage (versus Passive)‏  Web 2.0 – especially loosely coupled application solutions See http://www.dailydooh.com/archives/746

19. 19 Buy From / Work With Solution Providers!!! A Clear Strategy and Vision Customer retail psychology Marketing communications Video graphic design Technology - AV/IT What Happens if the Vision is Not Thought Through? Screens in the wrong places Content may be inappropriate for the retail locations Channel not a commercial success Screen Layout in Relation to Customer Purchasing Pattern Where should the screens be placed? How many screens? What size? Screen Content What content should go on screens? What’s the eye-on-screen dwell time? How long should content segments be? How should it be day-parted? What is the wear-out time?

20. Sound matters Sound affects people powerfully, altering their behaviour oPrimary effects are physiological, psychological, cognitive, behavioural oResearch has shown that sound can increase retail sales by over 30% Most retail sound is arbitrary, incongruous and hostile oMain effect is to reduce dwell time and therefore sales How to design an effective soundscape oCreate audio brand guidelines (ABG)‏ oRemove inappropriate noise oOptimise acoustics and install a decent sound system oDesign an effective background sound using psychoacoustics and ABGs oAdd foreground sound that is targeted, appropriate, valuable oConsider the whole soundscape and listen: shut your eyes! oTest and test again Slide reproduced by kind permission Julian Treasure, http://www.thesoundagency.com/