Digital out-of-home: Who makes it work?

The number of screens under Adcentricity's umbrella grew by at least 20 percent last year, Gorrie says, but he adds that there's a lot of supply. Some of the older networks have put the brakes on installing in new locations.

At last count, there were 1.8 million screens operating in North America. By 2012, that number is expected to be close to 10 million.

"Nothing ever happens very quickly in retail," Gorrie says, and some retailers take a couple years just to implement their plan after testing. "No matter what, you're always talking about the top 20 or 30 markets to start."

Gorrie says Wal-Mart is by far the largest retail implementation of digital in-store screens. The company is currently installing its second generation of screens.

Even with all these screens constantly delivering entertainment, information, and marketing opportunities, many brands are "sitting on the sidelines," Gorrie tells iMedia. However, financial services, mobile device manufacturers, and electronics makers have been very quick to adopt.

While some out-of-home implementations have been a success by any measure, there's plenty of business that pulled back after putting their hat in the ring. "There's a lot of roadkill along the way," Gorrie says, adding that it mostly depends on the company type and what its objective might be. Some companies have seen a 73 percent lift in sales, he says.

Bringing everything full circle
"We have come full circle (in a sense) in terms of digital commerce," Crayon's Broitman says. "Ultimately, the result will be true cross-channel integration (we have been hearing about this for a while, but we are only now beginning to realize what this means) in a ubiquitous computing environment. The lines between the real world and the digital world will become obscured, leaving us with the challenge of creating a seamless experience."

And while we still have a long way to go, he adds, there are many companies making in-roads to real success in the digital in-store space. Part of the ultimate success of digital in-store will lie in how effectively retailers are able to leverage the mobile phone. SMS, QR Codes, and other methods will help bridge the gap between the retail store and online shopping.

"Over the next five to ten years, we will see various manifestations of digital in-store -- stay tuned, it will be an interesting ride," Broitman says.

<< Previous page

Matt Kapko is deputy editor for iMedia Connection.

 

Comments