Thursday, July 10, 2008

Digital Signage: Consumers Want Control

by David Little

A recent report from market researcher iSuppli reveals what anyone who uses the latest electronic gadgets intuitively knows. People love to touch screens, interact with technology and get the results they desire. From Apples popular iPods and iPhones to most of the GPS navigation devices on the dashboards of many cars on the road today, touch screens are becoming the de facto way folks like to interact with technology. Perhaps you have a friend like mine who is a control freak. If so, then this technology is just what the doctor ordered.

When I question him about why the set is on, he never has a very definitive answer, just some nebulous comment about background noise. Without question, my friend and millions upon millions of other Americans- have found a way to tune out the endless stream of information, commercials and promotions and selectively focus in long enough if something arises to pique his interest.

I've often compared and contrasted television and digital signage in this space, usually pointing out the benefits of the latter, such as its ability to reach audiences at the point of purchase when they're actually looking to spend money. Sadly, however, digital signage has the potential to suffer from the same tune out factor my friend integrates into his normal TV viewing. Without the right messaging, its possible that digital signage will blend into the background and fail to connect with its audience at the most opportune moment.

According to market research firm iSuppli, worldwide shipments of touch-screen modules will reach 341 million units in 2008, or about $3.4 billion in value. However, five short years from now, the research organization forecasts global shipments of touch-screen display modules will more than double to 833 million units.

For the digital signage marketer these trends are significant because the technology they use does not exist in a vacuum. While today it might be enough to market a product on a digital sign at the point of sale in an effort to influence the buying decisions of customers, it wont be for long. Soon, those shoppers will expect the same degree of interactivity and control they have on their TVs at home and the phones in their purses.

The situation will be exacerbated as cable TV gets more interactive, IPTV rollouts with on-screen hotspot links and over-the-top video (video delivered via Internet broadband connection) blurs the line further between whats a television and whats a computer. The good news for digital signage marketers is that a variety of interactive technologies are being integrated into some of todays digital signs, giving them touchscreen capabilities and freeing them to combine the best of the kiosks world with the strengths of digital signage.

In a nutshell, these interactive, hybrid digital signs can attract attention while in linear mode by playing back special offers or even something as basic as television programming and at the touch of one finger transition into an interactive mode in which a consumer can find the product information, electronic coupon or one of an endless list of info nuggets that are desired.

Winning the race to influence consumer-purchasing decisions soon will mean digital signage content producers soon will be forced to add interactivity. While there certainly will still be a place for traditional linear digital signage content, its hard to imagine a future in which interactive hybrid digital signs arent at the least an important addition to the marketing mix.

To do otherwise is out of step with consumer expectations nurtured through a succession of technologies, including iPods, Blackberry devices, and GPS navigation units to name only a few, that put them in charge and promise that control is just a touch away.

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Filed under Marketing by David Little

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