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Fakultät für Wirtschaftswissenschaften Institut für Betriebswirtschaftslehre Fachbereich Electronic Business

Fakultät für Wirtschaftswissenschaften Institut für Betriebswirtschaftslehre Fachbereich Electronic Business

Interactive Digital Signage as a Service

KFK eBusiness: SE Neuere Entwicklungen in eBusiness & eLogistics LVA-Nr. 040.006/2

Summer Semester 2013

Profesor: ao. Univ.-Prof. Dr. Strauß Supervisor: Dipl.-Ing. Dr. Natalia Kryvinska

Author: Jozef Négli (1246898)

Vienna, May 2013

Interactive Digital Signage as a Service

Table of Content

Table of figures

3

List of abbreviations

4

Introduction

5

1 Digital Signage at a glance

6

1.1

Types of digital signage

6

1.1.1 Indoor and outdoor digital signage

6

1.1.2 Mobile digital signage

7

1.1.3 Application area of digital signage

7

1.1.4 Interactivity

7

1.2

Benefits and drawbacks of digital signage

8

2 Deploying the digital signage as a service

9

2.1 Reasons for digital signage service

9

2.2 Digital signage network

10

2.3 Digital signage exchange

11

 

2.3.1

Placing an order

11

2.4 Scheduling

12

2.5 Pricing system

13

 

2.5.1

Payment options

13

2.6

Display blindness and external factors

14

2.6.1 Mediating effects

15

2.6.2 Negative externalities

15

2.7

Best practices

16

Conclusion

19

References

20

Appendices

23

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Table of figures

Table 1: SMIL and POPAI

8

Table 2: Scheduled types of orders

12

Table 3: Effects influencing display blindness

15

Table 4: Best practises for service provider

16

Figure 2: Volume of digital signage units shipped

23

Table 5: Types of orders

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Figure 3: Information flow in learning concept for digital signage

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Figure 4: Effect of digital signage on approach behaviour

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List of abbreviations

DOOH- digital out of home W3C- World Wide Web Consortium POS- Point of sale POT- Point of transit POW- Point of wait POA- Point of access NYC- New York City ROI- Return on investment CDI cycle- creation, distribution, installation cycle Advert- Advertisement DSE- Digital Signage Exchange DSN- Digital Signage Network IADT- International Academy of Design and Technology ITUT-T- The International Telecommunication Union's Telecoms Standardisation Sector

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Introduction

Digital Signage represents a relatively new tool in marketing environment and provides a great enhancement to the traditional advertising platforms. As the phenomenon of the Internet has become to be the part of our everyday life, the new possibilities for customer´s attraction have been revealed. The most of us are already suffering under an informational overload, hence there is a strong need to be able to draw customer´s attention with tailored advertisement in a real time. Digital Signage, called also digital out of home advertising (DOOH), allows the companies to provide adaptive, real time services, fitting customer´s needs.

This work is structured into two main parts. The first one describes the whole theoretical background of the digital signage itself, such as its advantages and disadvantages, usage, year growth, types and new trends in this marketing field followed by its interactive feature. Moreover, the key points regarding the infrastructure (network) and standards are stated in conclusion of this part (SMI, POPAI, W3C consortium efforts).

Second part examines digital signage as a service, managerial implementations relating to instruments and recommendations for avoiding the display blindness and elements increasing the customer attraction. From the managerial point of view, understanding the whole bidding and pricing system is one of the most significant elements when deciding whether to implement such a type of marketing tool, thus, in the second part the different approaches to bidding, pricing mechanisms and scheduling are explained.

Finally, the last part deals with the best practices for digital signage services revealing some practical insights, such as display blindness, role of context, content, location and negative externalities covered in the academic papers (e.g. Müller and Krüger, 2009b MobiDiC).

This work will be accomplished on the basis of the journal, academic articles and some credible online sources and could be useful to assist those organizations attempting to implement a digital signage as their service.

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1 Digital Signage at a glance

Nowadays, when the public places are overloaded with prevalent advertisements and the space is a scarce resource, digital signage solutions can be feasibly applied to display unlimited number of adverts. Digital signage is a form of informational and commercial advertising network which uses predominantly digital screens such as LCDs or plasmas to display multimedia content in public places. Based on its direct connection to the provider it offers quick, effective and flexible controlling and displaying of content (Négli, 2012).

According to the latest studies, current, approximately US $5 billion digital signage market, will triple by year 2016 (Want and Schilit, 2012). The wide spread of this technology was caused mainly because of the price fall of the LCD screens, which are considered as the crucial components of digital signage. Additionally, the volume of units shipped will grow to 2.1 million by 2013, generating a Compound Annual Growth Rate of 22.9 % from 758,122 units in 2008 (Khatri, 2009 cf. Figure 2 in appendix).

1.1 Types of digital signage

There are different types of digital signage solutions used in the market. Based on the location of deployment we can divide these solutions into two main groups and namely into indoor and outdoor digital signage solutions. There is also a separate group of digital signage that is delivered directly to the consumer´s phones or mobile devices called mobile digital signage (Négli, 2012).

1.1.1 Indoor and outdoor digital signage

This type of digital signage is often used in public places, trying to draw attention of passers- by. Most common examples are interactive kiosks that are deployed in subway stations, shopping malls, in the streets or at airports. In recent days some fast food chains have recognized the value of the digital signage as well and applied them at their point of sales (POS). Indoor and outdoor digital signage uses mostly a playback device which is connected to the display. Newest forms of the interactive digital signage take an advantage of affordable prices of computers and install them into the machine in order to be able to provide tailored response for each customer. Moreover, based on the device used in the unit, the maintenance

can be done through Internet what is one of the crucial factors when deciding for implementation of such a solution. Most recognized examples of outdoor digital signage solutions are LCD screens deployed in the biggest public areas such as Times Square in NYC or Shibuya in Tokyo stored in a secure and weather proof TV enclosure.

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1.1.2 Mobile digital signage

Mobile digital signage uses devices owned by customers/passers-by. When the customer approaches the coverage of POA (Point of access), prepared advertisements are supplied to the connected device (Yoon, C., Lee, H., Jeon, S. H., & Lee, H., 2011). This connection is accomplished mostly via Bluetooth or Wi-Fi. Widely known examples are vouchers sent via Bluetooth, SMS, or directly shown on the customer´s phone screens after scanning QR codes (cf. Müller and Krüger, 2009b).

1.1.3 Application area of digital signage

Digital signage can be distinguished also based on an application area (Kelsen, 2010). The most solutions are deployed at the points of sales (POS). These are typically comprised of in- stores signs striving for customer´s attention in order to cause a conversion. At POS the usual intended conversion is sales uplift. In these cases the call to action is immediate as the screens are placed directly at the place where customer is making buying decisions. Another application area is represented by point of transit (POT). These advertisements are trying to grab attention of passers-by for a short time. The main purpose of these screens lies in

establishment of brand identity. The third application area is point of wait (POW). At these points customer does have sufficient time to look at the signs and therefore the advertiser can use different tactics to engage his/her attention (e.g. more repetitions, longer advertisements with persuasive character). Usual examples of digital signage at POW are found in healthcare, retail banking or office buildings (Bauer, C., Dohmen, P., & Strauss, C., 2012).

1.1.4 Interactivity

The main aspect favouring digital signage from the paper counterpart is its interactivity. The revolution of the smartphones allowed the digital to use them to control the content. As the short-range wireless minimizes delays between user and sign, it can be an effective method of low-latency interaction (Want et al., 2012). Another examples are cameras integrated in digital signs that can recognize person´s age or gender according the length of hair, height or weight. According to this information the advertisement can be better adapted to the audience. Vogel and Balakrishnan (2004) presented also gesture-controlled displays, interacting with passers-by according the proximity to the screen. Müller and Krüger (2009) developed solution that can learn from its experience and based on this information can influence the scheduling and selection mechanism. To conclude, interactive digital signage allows greater involvement of audience, better user experience and accurate targeting.

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1.2 Benefits and drawbacks of digital signage

Digital signage offers some special features and benefits in comparison to a conventional, static way of campaigns. The fast, flexible and on the fly update through the network, without the need to interact with the signs physically, eliminates high costs in comparison to creation and distribution of print advertisement campaigns. Moreover, the possibility of selling advertising space to their suppliers contributes to the financial advantage of this solution too. Digital signage, for the sake of its interactivity, is also more engaging, more informative and offers targeted content that can grab customer´s attention right at the POS and thus, positively impact sales. Based on the solution deployed, it can be also possible for passers-by to interact with the advert through several technologies. (Bluetooth, Wi-Fi, Motion sensors) As the attention of customers increases, these solutions offer also better ROI and lower financial expenses for creation, distribution and installation (CDI) (Bauer, Dohmen, Strauss, 2012; Harrison and Andrusiewicz, 2003).

The major drawback poses the lack of unified standards which would be used in all solutions across the world. The existence of such a standard will even more boost development in this emerging field and make all customizations forgotten. Nowadays, the most used standards are POPAI, SMIL and HTML 5. W3C consortium is preparing to launch one standard platform, what will allow additional cost reduction of content acquisition and transmission in this field (iAdea, 2012). The first workshop in 2011 was held in Tokyo, where the needs and requirements of big digital signage users were consulted (ITU-T, 2011; Négli, 2012). In the table below, the two most used standards are described.

SMIL

POPAI

XML-based mark-up language for describing playlists, schedules and screen layouts

Similar use as SMIL,

Most common supported formats are:

MP3, . AAC, .PCM, A-law, U-LAW,

Open standard established by the W3C

Mostly used in USA, Germany, Denmark and France

One hardware vendor can drive about 100 000 displays. (W3C, 2003)

DiviX, Xvid, x264, .bmp, .jpg, .gif, .png, .avi, .mov,. asf, .mp4, TS, PS.

Pros: no dropped frames for video, no noticeable distortion of audio and still images from original (POPAI, 2009)

Table 1: SMIL and POPAI

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2 Deploying the digital signage as a service

Setting up a digital signage service is a business process which offers different approaches in the terms of serving customers. There are also several business models which can be used when deploying digital signs. In this part we will focus on digital signage as a service, its infrastructure, forms and special aspects that have to be taken into account in order to achieve a successful running service.

2.1 Reasons for digital signage service

There are many reasons why to deploy the digital signage. As the current trends are showing that the conventional way of attracting customers is connected with intensive costs of CDI in terms of labour and material (Harrison and Andrusiewicz, 2003), the use of digital signage seems to be legitimate. The main drivers, which are determining the business model used, are presented below.

Selling the display time/third party advertising: ‘‘ This business model has probably received more attention than any other, because it speaks directly to ROI’’ (Yackey, 2009). From perspective of service provider, the main reason for setting up of digital signage solution is to sell display time to the third-party advertisers.

Market: e.g. in-store promotions, using interaction with customers. The aim of such screens is to ensure the sales uplift. These signs typically include call- to-action statements, which are mostly placed at POS.

Entertain: This function of digital signs is focusing on the interactive activities to attract and reduce boredom, as most of the customers dislike waiting in the queues. While customer’s attraction is focused on the advertisement, the waiting in queue seems to be shorter and overall purchase experience is positively affected what can have consequently a supportive impact on brand awareness

Inform: Providing up-to-date news, events calendars and location sensitive information to highly targeted audiences e.g. Subway news.

Internal Communication: Digital signs can be also used to ensure intern communication and provide employees with real time information related to their scope of work (Yackey, 2009).

Alert: Informing targeted audience. E.g. Motorway LED screen warning about ice, traffic jam, car accident, safe crowd management at large events (ITU-T, 2011).

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When deploying any digital signage solution, it is necessary to be able to measure the impact

of these signs on achievement of intended goal. Afterwards, this fact can persuade the

potential buyer of time slot whether to use the service or not. In case of digital signs used at

POS, the measurability can be easier than for digital signs deployed for entertainment, as

these are striving more or less for increase of brand awareness what must not be conditionally

related to sales. These days, the most providers usually state only approximate number of

passers-by exposed to the screen (Medias, 2013), but there are also another approaches such

as partnership of In-Store Marketing Institute and VNU trying to measure the impact of

digital signs in cooperation with supermarkets. In general, the measurement is accomplished

individually and therefore it is hard make one universal conclusion (Broadcast Engineering,

2007).

2.2 Digital signage network

(Broadcast Engineering, 2007). 2.2 Digital signage network Figure 1: CDI cycle (Harrision and Andrusiewicz ,2003) In

Figure 1: CDI cycle (Harrision and Andrusiewicz

,2003)

In the following parts the focus will be placed on digital signage

network (DSN) which chiefly connects the display controllers. This

connection allows shortening of the conventional CDI cycle with the

exception of the graphic design of a particular advertisement (Harrison

and Andrusiewicz, 2003). When the campaign is designed it can be

directly transferred to the display in milliseconds. The conventional

steps such as physical sign creation, distribution and installation are

eliminated (cf. Fig. 1). On the one hand, the implementation of digital

signs is connected with higher initial investments, but on the other, the

flexibility in changing the content remotely can be done at relatively

low cost (Bauer et al., 2012). Moreover, if the retailer’s inventory

system is interconnected with the digital signs, according to the actual

situation the particular advertisement can be pushed or, in case of

unavailability of an item, paused. Not just the information about the

inventory status, but also demographic data is important when

providing dynamically configurable promotion. Assuming that

advertiser has information relevant to the audience the advertisement

can be adapted to meet expectation of audience, thus, the probability of

conversion will increase.

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2.3 Digital signage exchange

For the sake of appropriate distribution of advertising space within digital signage network there is a need of digital signage exchange (DSE). Harrison and Andrusiewicz (2003) describe the DSE as a ‘‘partially automated, supervised broker than mediates between sellers and buyers ‘’. Seller is defined as an entity, who owns and control digital signage solutions; it can be platform provider and/or space provider. The buyers are usually advertising companies, interested in purchase of time slots for their customers. In the literature there are also stated another entities as parts of this chain, namely consumer, space owner, and context information provider (Bauer et al., 2012). The interactive feature of digital signage gives the consumers the option to provide comments on advertising, meaning that the future advertising cycle can be adapted to the personal needs. Digital signage exchange is an intermediary between all these market players and based on schedule management and bid amount (when auctioning selection is applied) decides whose sign, when and for which price will be shown. This decision process is called transaction management model (Harrison and Andrusiewicz, 2003). In the next chapters we will take a closer look at the service framework of digital signage.

2.3.1 Placing an order

From buyer´s perspective the order is represented by description of content, physical location

and scheduled time. This order is placed through DSE and based on comparison with other orders it is decided if the requirements of buyer can be fulfilled (Harrison et al., 2004a). In general, there are 3 types of orders.

Time based order (T): This type of order requires only one exposure at a fixed time, ‚‘‘cycle duration equals the exposure duration, which also equals the time between activation and expiration‘‘ (Négli, 2012; Harrison and Andrusiewicz, 2004a).

Standard order (S) is type of order, when the buyer specifies the start and end date of the campaign. The frequency and total exposures can be set as well. This type of order is more flexible as once the order cannot be fulfilled the alternative solution can be followed. The exposure duration is not equal to cycle duration, but there is not cycle gap. This order is mostly used to promote time-limited products.

Recurring schedule item (R): When the advertisement should be repeated in fixed times this type of order is required. The exposure duration is equal to the cycle

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duration, but the cycle gap occurs 1 (cf. also Table 5 in Appendix).

In the table below, already described types of orders are accommodated within the schedule.

Table 2: Scheduled types of orders (Harrision and Andrusiewicz, 2004a)

types of orders (Harrision and Andrusiewicz, 2004a) 2.4 Scheduling Getting the right message to the right

2.4

Scheduling

Getting the right message to the right audience and at the right time is the key element for providers of digital signage solutions. Storz, Friday and Davies (2006) state that the scheduling for collaborative displays 2 is mainly determined by person´s interaction; thus, the person directly decides which content will be shown and therefore, there is no need for complex scheduling system. On the other hand, the informational signs typically employ for scheduling looping playlists where the orders of other players/advertisers can influence the whole selection. The chief function of DSE is to provide accurate information about available display time to buyer and also seller. When a new order is placed, the digital signage exchange generates a partial schedule. Based on this schedule, system calculates how many other orders can be accommodated. If the new/next order is placed, system compares partial schedule with proposal and either accommodates this offer as requested or propose a counter- offer (Harrison and Andrusiewicz, 2004a).

The crucial feature of the digital signage is its interactivity; these systems are able to use different sensors in order to better adapt to the context. Müller et al. (2009) propose to employ an automatically learning mechanism using Naive Bayes classifier 3 that can apply scheduling strategies obtained from previous observations of audience. Their concept consists of feedback loops, id est the digital signs can adapt their content based on audience reactions. Thus, when system recognizes that person reacted on certain sign under certain circumstances, favours this advert next time in similar situation (Müller et al., 2009; cf. also Fig. 3 in

1 Exposure Duration: The time necessary to display the content, e.g. the length of the ad. Cycle Duration : An interval of time, repeated between announcement and termination, in which the ad can be played repeatedly. Cycle Gap: The time interval between two cycles.

2 Collaborative displays enable users to share information.

3 Naive Bayes formula classifies the presence or absence of a particular feature. E.g. if the system recognized that at 7:00AM man looked at the ad no.1, saves this information and next time when another man look at the screen the probability of displaying of this ad no.1 will be higher.

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Appendix). Not just the buyer’s order or contextual data, but also another factors influence the scheduling. Each deployment of digital signage is striving for financial sustainability; thus, there is need for appropriate pricing mechanism, which will produce relevant information for scheduling system.

2.5 Pricing system

Assuming that the platform provider (digital signage service provider or seller) is trying to fulfil advertiser´s needs (pushing the exposure of its advert in the advertising cycle and offering intended conversions), the auction mechanisms seem to be feasible as these can achieve higher conversion rates than classic selection approaches such as Round-Robin approach and Random approach (Payne (2006) states particularly up to 64%). In this part, we will focus on the auctioning selection.

Interactive digital signage makes a vast use of contextualization that is applied in the auctioning selection too. Based on contextual information such as video captured by integrated camera, Bluetooth device connected to the digital sign, location and time, the most suitable advertisement even for lower bidding price can be favoured and viable conversion rate achieved (Müller and Krüger, 2007). In general, the auctioning selection process consists of advertising agent that is responsible for purchasing advertising space and auctioning agent that saves a history of successful advertising cycles (e.g. in which cycle the buyer won the auction, the advertisement was shown and conversion was achieved) and based on this results, favours/disfavour advertiser´s bid in the next auctioning cycle (Payne, 2006). This example is just one of the many used in practice and there are surely different algorithms for computing the bids and consequently to display them. For example, Google has never completely revealed the bidding algorithm hidden behind its Adwords service. In order to utilize the auctioning process Google takes also an advantage of contextual data and applies them in the Adwords’s auctioning mechanism. Buyers with higher Google page rank, more keywords or better link quality will need to bid less than buyers with poor rank or less keywords. In conclusion, this strategy will favour just the relevant buyers and produce just appropriate results for the audience.

2.5.1 Payment options

Buyer has several options to pay for digital signage service.

Buyer can pay per impression, id est to pay for each second when the advertisement is

shown;

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Per view is type of payment, when buyer pays for each person who saw the advertisement (similar to pay for click in Google Adwords);

Last option is called in literature per attendance (Müller and Krüger, 2007). In jargon of Google Adwords it is similar as to pay for conversion (Google, 2013), id est buyer pays when a desired action happens.

In general the auctioning mechanism in the field of digital signage works on the base of second price auction (Payne, 2006). Winning advertiser will never pay more than one bid increment above the bid amount of the advertiser in the second position, meaning that winning buyer gets the time slot for price of bid of the second higher plus an increment, and second buyer pays just one bid increment above of the bid of an advertiser in the third position 4 (Amiri and Menon, 2003).

2.6 Display blindness and external factors

As already mentioned, the auctioning selection takes an advantage of contextual factors when processing the bids (audience, location, Bluetooth device connected). In this part, we will focus on some of them in relation to the display blindness. Display blindness was derived from similar term, namely, from banner blindness which is characterized as the phenomenon of website users who are actively ignoring web banners (Owens, 2011). Studies have confirmed that the ‘’ expectations towards what is presented on public displays can correlate with their attention towards these displays’’(ller et al., 2009). Milgram (1970) also states that the display blindness is connected with person’s informational overload. Some solutions to overcome the display blindness will be presented in this section.

It was found that there are two major factors affecting person’s glance at the display, bottom- up effects and top-down effects. Furthermore, the displays at POW received more attention as displays deployed at POT (Müller et al., 2009c). However, the location does not have any effect if person expects some interesting information. When the display was deployed in the school area students expected interesting information, in contrary to the displays placed in city centre, which were considered as ‘‘just an another ad‘‘. Thus, the displays at schools were glanced more often (Müller et al., 2009c). This underlines the influence of contextualization on consumer perception. Furthermore, studies have revealed also bottom-up effects that have impact on the display blindness respectively which can reduce it. When

4 Amount of an increment bid depends on platform used, generally $0.01

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providing a digital signage service, factors summarized in table below, should be taken into consideration.

Top-down effects

Person’s expectations towards to the perceived content can reduce display blindness, e.g. for public institutions people expect more relevant information than for commercial entities what makes the displays placed in public institutions more glanced.

Location does not have any effect on display blindness if person expects some interesting information

Bottom-up effects

Colourfulness and attractiveness reduces display blindness

Displays that showed video content tended to capture the eye longer than text

Amount of display time = Long distance visibility makes the probability that person notices the screen higher

Displays the in eye height or positioned considerably above the head draw more attention

Size of display eliminates display blindness

Closer distance to other eye-catchers increases display blindness

Placing display in forward direction captures the attraction unintentionally

Small displays may encourage prolonged viewing in public spaces to a greater extent than large displays

Table 3: Effects influencing display blindness (Müller 2009c, Huang 2008)

2.6.1 Mediating effects

Dennis et al. (2010) also examined the mediating factors on perception and emotions in terms of digital signage. Based on Puccinelli’s theory (2006), people who are in good mood before shopping may have better perception of the products and then tend to spend more. Dennis et al. add that marketers can enhance this process by using sensory stimuli through the digital signage. They proved that digital signage has significant direct influence on perception of the mall environment which consequently drives the customer’s willingness to spend more (cf. Dennis, 2010 Fig. 4 in appendix).

2.6.2 Negative externalities

These days, we are exposed to numerous of advertisements on the streets what causes information overload, however, the attention of each person is not limited. When the attention is drawn to an advert, this process represents for the person ‘’attention cost’’. Advertiser does not directly calculate these costs, because just the internal costs, such as costs for space rental, campaign design, have to be paid in order to display an advertisement (Bauer, Dohmen, Strauss, 2011). These factors are called negative externalities (Müller and Krüger, 2007b). In the previous chapters some approaches competing the negative externalities were already stated (contextualization, bottom-up effect). In this part, we will focus on some in terms of

market regulations.

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There are tree approaches addressed to negative externalities: maximum permissible values,

fees and tradable certificates (Müller and Krüger, 2007b). The last stated tradable certificates

are according to Müller and Krüger (2007b) a combination of the both previously stated

mechanisms. They consider the auctions for tradable attention certificates with auctions for

time slots as viable when implementing the digital signage. Based on tradable certificates the

amount of attention is sold in the auction for particular location what maximizes the

consumer´s benefit and on the other hand, the distribution among advertisers is optimal

(Müller and Krüger, 2007b). Furthermore, the implementation of these auctions can be

favourable when the automatic software agents are implemented (Bauer et al., 2011). This

regulation of advertising market will on the one hand, reduce information overload for the

consumers, but on the other, it will help the advertisers easier to target them, because just the

relevant ones will be able to win the auction.

2.7 Best practices

In this part we will focus on some practical implementations for digital signage. The main

factors, enhancing its utility, were already explained (cf. Chapter 2.6). Müller and Krüger

(2009, 2009b) conducted several studies based on results generated by its MobiDiC digital

sign and iDisplay that include some practical recommendations for every service provider. In

the table below, the summarized customer and advertiser concerns about digital signage can

be found:

Advertisers

Customers

Most important system feature was measurability of advertising access followed by optimization of location

Taking photo of coupon was faster and more preferred than transfer via Bluetooth or SMS

Most of the advertisers rely on proposed scheduling by system

Location is very important in order to gain attraction

Advertisers have problem to design their own campaign

Younger generation should be the target generation of these solutions

Advertisers await additional marketing support for digital signage solutions (flyers, promotion in newspapers)

Once passers-by understood the system, they liked it and stated to use it in the future

Before deployment, the advertisers were interested in control (which sign, when, how, statistics) after just in convenience and effort of providers

Location bears more importance than content

When the purpose of the camera was not explained, the persons felt to be ‘’securely watched’’

Passers-by stated to preferred contextual content (e.g. when sign in the shop, convey information about shop discounts)

Table 4: Best practises for service provider

As stated in the table, the applied technology is not easy for each person to operate. Some

participants had even problems to enable their Bluetooth and therefore the camera (heavily

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used by almost all mobile phone owners) was used as main transmitter of information. Vogel and Balakrishnan (2004) also tested new interactive public ambient display that reacts to gestures and the distance of passer-by. Their research showed that these techniques are fast discoverable and useable. Anyway, it is very important to bear in mind which target group should come across these signs. As already mentioned, mostly the younger generation is the target audience of these solutions (Müller and Krüger, 2009). For the future, there are different technologies such as gesture-based recognition (Chen, Qing, et al., 2009) or body tracking systems, which could be employed in digital signage (Rehg et al., 1997). However, there is still a long way to bring the system on such a level, which will ensure easy and user- friendly interface for all consumers. The research studies conducted by Müller and Krüger (2009) revealed the lack of knowledge and incompetence of retailers to design and configure their own advertisements, hence the providers of digital signage service need to have a complex knowledge to offer full-package product to the potential buyer. Apart of already stated bottom-up and top-down factors, promising techniques for digital signs are represented below.

It is recommended to use rather shorter words and phrases (Lorrell, 2011). To draw a person´s attention at POW can be easier than at the POT. The advertiser can use longer words at POW since the person has sufficient time to process the content. One screen should present only one message using rather headline-style phrases in order to present understandable and simple message. The main message/statement should be presented at the beginning, but also repeated at the end (Lorrell, 2011). As already stated, the use of Call to Action statements can likewise enhance the overall performance of digital signage. These consist of the verb stated in the beginning followed by contact information or any information that will enable to consumer to make use of offered service (Google, 2013b). The close proximity of another eye-catchers, e.g. pictures can ‘’steal’’ consumer´s attention from the main message, but on the other hand, the sign enriched with pictures is easier to remember (Huang, 2008). From the typographical perspective, it´s recommend to use sans-serif fonts and contrasting background what makes the messages easier to read (IADT, 2011). Consumer is exposed to the screen just for limited time, meaning that the advertiser has to make the duration of the advertisement shorter than the time needed for person to pass by. As stated in chapter 2.6, the display size can reduce the display blindness, but sometimes the enlargement of the screen could be very costly, hence the enlargement of the text size could be much more feasible. The location of deployment can be crucial in some cases as well. For the places with a lot of foot traffic it is

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suggested to deploy the screen in above head level, in contrary to places such aisles of groceries stores, where the deployment directly at the eye level can gain more attention (Lorrell, 2011). Currently, the main drawback of digital signage (cf. chapter 1.3) is its diversity of supported formats (iAdea, 2012). Once the screen is deployed, it is necessary to check which formats are supported. Moreover the proper grammar and check for typos is a must. Furthermore, one should also consider the aspect ratio, resolution of the screen and a view angle in order to eliminate any distortions.

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Conclusion

Digital signage is a promising and very attractive platform that has already gained its fixed place between other advertising tools. In this work, several configurations were introduced (e.g. based on application area, location or delivery system). Digital signage with its adaptive and flexible CDI cycle surely beats the conventional way of advertising. The main issue, namely the lack of unified standard will be according to W3C in the next years solved. However, with the rise of the popularity of this advertising form new drawbacks occurred. Nowadays, when the advertising space is a scarce resource, digital signage is facing to negative externalities that can influence their deployment. Firstly, the local authorities can regulate the amount of advertising space. For the sake of these regulations the auction systems were recommended (Müller and Krüger, 2007b). With respect to the auction mechanisms, these seem to be viable in terms of scheduling too, as the conversion rate is in comparison to classic selection approaches higher (Payne, 2006). Chapter 2.4 and 2.5 explained the whole background hidden behind this infrastructure such as pricing, type of orders and payment options. Second, the studies of Müller and Krüger (2009, 2009b) revealed that there are still privacy concerns, when using and collecting the contextual data. Unfortunately, this data are in terms of interactive digital signage crucial, thus the service in some cases cannot be tailored to the consumer’s needs. There are several legal regulations that have to be taken into account. Generally, the person has to have right to opt- out from collection of contextual data (E-commerce-Act, 2013). Furthermore, the provider of digital signage platform has to be aware of another factors which can impact the utility of deployed system. For this reason, there were proposed various bottom-up and top-down effects which can help the provider to avoid display blindness. Moreover, as the service of digital signage is becoming more complex, sometimes the provider has to offer full- package solutions, thus in the last part the summarized best practices can be found. Finally, one will argue that digital signage is already a mature technology (Chen, Qing, et al. 2009). However, this statement can be applied just on the centrally controlled solutions. Interactive digital signage is still in evolution and techniques such as hand-gestures or face recognition have to be still improved. Because of this reason, the future research is still needed in order to map whole development continuously.

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Appendices

Figure 2: Volume of digital signage units shipped

Appendices Figure 2: Volume of digital signage units shipped Source: Data: Khatri, S. (2009) Changing Retailer

Source:

Data: Khatri, S. (2009) Changing Retailer Needs Spur Tripling of Retail Digital Signage Market. 2009. http://www.isuppli.com/Display-Materials-and- Systems/News/Pages/Changing-Retailer-Needs-Spur-Tripling-of-Retail-Digital-SignageMarket.aspx (accessed 2012-12-10.

Graph: Négli J. (2012) Interactive Digital Signage as a Service. eServices. Presentation University of Vienna.

Table 5: Types of orders

 

Time Based order

Recurring order

Standard order

Exposure duration

3

units

2

units

2

units

Request activation

 

T17

T1

T1

Request Expiration

 

T20

 

T23

 

T30

Cycle duration

3

units

2

units

10 units

Exposure frequency

1

1

1

Cycle gap

0

units

8

units

0

units

Schedule ID

 

123

234

345

Data Source:

Harrison, J. V., & Andrusiewicz, A. (2003). Enhancing digital advertising using dynamically configurable multimedia. In Multimedia and Expo, 2003. ICME'03. Proceedings. 2003 International Conference on (Vol. 1, pp. I-717). IEEE.

gz

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Figure 3: Information flow in learning concept for digital signage

3: Information flow in learning concept for digital signage Source: Müller, J., Exeler, J., Buzeck, M.,

Source: Müller, J., Exeler, J., Buzeck, M., & Krüger, A. (2009c). Reflectivesigns: Digital signs that adapt to audience attention. In Pervasive Computing (pp. 17-24). Springer Berlin Heidelberg.

Figure 4: Effect of digital signage on approach behaviour

Fig ure 4: Effect of digital signage on approach behaviour Source: Dennis, C., Newman, A., Michon,

Source: Dennis, C., Newman, A., Michon, R., Josko Brakus, J., & Tiu Wright, L. (2010). The mediating effects of perception and emotion: Digital signage in mall atmospherics. Journal of Retailing and Consumer services, 17(3), 205-215.

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