Unlocking the potential of the screen

The screen-media industry comprises the provision of video based advertising in out-of-home locations using networked digital signage technology. These screen networks are frequently referred to as screen-media networks, networked digital signage, captive audience networks, or dynamic digital signage networks.

These are all essentially the same thing; it is where they are deployed, how effectively they are deployed and how they are used in terms of media that varies significantly.

TBM currently operates a network of over 1 000 plasma and TV screens across the country, creating a platform for advertisers to share their information with various sections of the population, depending on which audience-specific package is chosen.

Trendsetters in their field, TBM incorporates new technology that provides a basis for revolutionary new communication strategies. Advertisers can create high-impact campaigns and deliver them virtually instantly via satellite to any of these screens across South Africa. Advertising screens within the TBM network include those at Johannesburg, Cape Town and Durban International Airports, airport lounges at these three airports, Absa banks, American Express, Rennies Bank, Virgin Active, golf clubs, advertising agencies and the Johannesburg Metro Police Department.

TBM also operates "private" television stations for government, NGOs and corporate clients, which can be used for various applications including marketing and promotions, staff training, brand building, product/service information, company communication, promotions, competitive advantage, social responsibility, sponsor extensions and strategic alliances.

TBM delivers DVD quality full-motion content to plasma screens located within closed networks, acting as a telecommunications service provider for institutions requiring information distribution to both staff and clients. These are known as hybrid networks, and TBM currently operates such a network for Cell C in over 90 retail centres across the country. During business hours, the network is used for communicating with the clients in Cell C call centres, stores and franchises, while after hours it is used for employee communication and education.

According to Steven Platt, Director of the Platt Retail Institute, retail stores are evolving as an important new media channel, with the emphasis on screens. In-store advertising is a fast-growing business in the US. Some US$900-billion is spent annually on marketing, and of this, around US$18-billion was spent on marketing at retail in 2005, and this figure is expected to top US$20-billion by the end of 2006.

Platt spoke in Johannesburg on behalf of IBM and Johnnic Communications' newspaper division during July, and his subject was American retail, targeted at local marketers.

"Diminishing audiences reach is impacting on advertising effectiveness in traditional mass-media," he said. "Persistent problems associated with gauging the impact of most forms of advertising have not been resolved. Retail stores are an underutilised marketing channel, with outstanding potential to impact shopper behaviour.

Platt hinted that businesses should take advantage of digital communications networks, which are technology-driven systems that deliver visual content through a centrally managed and controlled network, and allow brands to communicate persuasively at the retail level.

Simply, this means that apart from constantly redesigning and redecorating one's store, one has to install LCD TV sets that display dynamic and speedy messages, prices and adverts on a more localised level, with the aim of capturing shoppers' attention.

Platt firmly believes that the retail store is in itself an advertising medium, a right place where businesses can build a sound relationship with customers, and where the product interaction can take place.

Pierre van der Hoven, CEO of TBM, agrees. "Because media fragmentation has made traditional media less effective when trying to reach a specific target market, having the kind of flexibility that screen networks offer really makes this medium effective."

"Digital screens with moving images are much more effective than static point-of-purchase material," he continues. "Even though advertisers spend millions getting shoppers in stores, more than half of those shoppers leave empty-handed because static advertising is unreliable, invisible and difficult to manage. In fact, the Point of Purchase Advertising Institute (POPAI) estimates that 30% to 40% of all point-of-purchase advertising is wasted as a result of incorrect and non-displays."

The Screen Forum - a non-profit organisation that researches the effectiveness of the screen-media industry - says that people are likely to expect advertising at the point of sale and are less likely to find it irritating or intrusive. It also points out that screens have both branding and promotional potential, depending on the location of the screen.

In a retail outlet it may make sense for the advertising to be more promotional so as to drive immediate action and increase sales. However in a train, taxi, hair salon, Gymnasium, etc there are unquestionably excellent opportunities for developing branding.

Video Communications Consultants' Alan Joy says that the last six months have seen many positive developments in this arena. "Figures released in the Samsung/POPAI survey show that there are now over 95 000 screens in 82 networks in the UK," he says.

"Since 2003, the amount of media sales in the screen media market has increased 80% in the UK from £10.8-million to £19.6-million, with an almost 50% increase to over £30-million in 2006. This is still way short of the industry potential estimated at around £200-million by the research group Analysis. The main market sectors for screen media are retail, bars/leisure, travel and medical."

The awarding of the London subway contract shows the new technology and intense competition at play in the industry. The contract is valued at an estimated $3 billion over eight-and-half-years and was won by CBS, who pitched a campaign combining glueless posters and screens featuring changeable projected images.

Around the world, spending on outdoor advertising last year was $23.2-billion, up 6.1% from the year earlier, according to ZenithOptimedia, a media buyer owned by Publicis Groupe SA. In the U.S., outdoor advertising rose 11% in the first quarter, ended March 31, compared with a 5% rise in spending on all advertising, according to TNS Media Intelligence.

One of the world's leading marketers, Philip Kotler, says that the major challenge today is getting people's attention. "Consumers are pressed for time, and many work hard to avoid advertising messages," he says. "The main challenge is to find new ways to capture attention and position a brand or information in the consumer's mind."

Kotler notes that advertisers are demanding more communication effectiveness. "They want to shift more of their promotion spend into direct marketing, public relations, and newer promotion tools," he says. "When a customer sees an ad, he or she knows it is an ad, and an increasing number of customers are tuning ads out. Other channels have a better chance of getting the message through."

Kotler advocates replacing 'old marketing' with 'new marketing' that is holistic, technology-enabled and strategic, enabling companies to capture their target customers' activities, lifestyle and social space more effectively.

Concludes van der Hoven, "Whichever way you look at it, the writing is certainly on the wall - or should we say, screen! This medium is certainly the future."