Wawa Needs a Digital Signage Network

Wawa is one of the most well-known companies and brands in the Mid-Atlantic. For those of you that live in the northeast region of the United States, I'm confident that you would agree that Wawa is one of the best gas station/convenience stores that you have ever visited. But Wawa is really more than a convenience store. Each location has free-to-use ATMs and offers built-to-order hoagies and sandwiches, salads, gourmet coffee, toasted flatbread melts, and a wealth of other fresh food choices.

The privately-held company operates 570 stores (270 include gas stations) across Pennsylvania, New Jersey, Delaware, Maryland, and Virgina. Wawa sells 195 million cups of coffee and 56 million hoagies (subs) each year. The stores are packed in the morning with people buying breakfast sandwiches and their first coffees of the day. But the hustle and bustle in the early hours pales in comparison to Wawa stores at lunchtime. With strategic locations near suburban office centers, Wawa is packed from the hours of 11:30 to 2:00pm. I visited a Wawa yesterday during lunch and counted fifty people just waiting for their sandwich orders.

You might be asking yourself why on a blog focused on media and digital signage I would spend so much time describing a convenience store chain. Well, you'll be happy to know, that there's a method to my madness. The introduction I gave you on Wawa as a company is the foundation for my argument on why Wawa should install an in-store digital signage network. Each Wawa has products galore,; from typical convenience store fare - candy, chips, soda, etc. - to fresh food offerings and the Company's own line of milk, teas, energy drinks, trail mixes, etc.

With the number of customers who visit a Wawa store each day and purchase breakfast and lunch there, the company would be well-served in installing a digital signage network. It's a little surprising to me that Wawa has yet to do so, considering the company has been using touch screen ordering kiosks since 1999. As an early adopter of touch screen POS technology, I wonder why the company wasn't one of the first stores to install digital menu boards.

The number of hanging signs (I counted 9 during my last visit) that fill each Wawa are indicative of the company's support of in-store advertising. With the mix of products in each location, and the continued extension of the company's line of beverages and snacks, it's not difficult to see why so many signs are used for the store's promotional initiatives. Transitioning to digital menu boards, or a complete digital signage network, would go a long way in eliminating the store's many printed signs, thus lowering operational costs.

Since such a diverse range of people visit Wawa before, during, and after their work days, an in-store network with local news, weather, and traffic content would enhance the consumer experience. As community involvement and a tight-knit neighborhood feel are core tenets of Wawa's operations, airing local news and community information in its stores aligns directly with the organization's key values. Furthermore, with almost half of all Wawa establishments having full gas stations, there's an opportunity to install pump top digital signage as well.

With an abundance of brands in its stores and a plethora of quick-service menu items, Wawa wouldn't have any difficulty finding advertisers for an in-store network.

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Cool Microsoft Surface Applications

If you're an avid reader of this blog(if you're not, I invite you to become one), you know that I'm a big fan of the Microsoft Surface. Interactive technology is huge right now, and will continue to find its way into every aspect of our lives (see Microsoft's vision of the future). For starters, you have the widespread adoption of the iPhone (I'm getting the iPhone 3GS this weekend), the cross-generational success of the Nintendo Wii, Microsoft's introduction of Project Natal (gesture-based interactivity for the XBOX), etc.

In a previous post, I wrote the following about the Microsoft Surface:

Whether you think of the Microsoft Surface as interactive digital signage, a kiosk, or a coffee table-like computer, the simple truth is that the innovative technology solution undoubtedly casts light on the continued convergence of digital media and bricks-and-mortar retail. Multi-touch technology, in the form of a phone (thanks Apple!), tabletop, or a digital screen is going to be used more and more in commercial and consumer applications.

Even though the Microsoft Surface is not yet available for consumer purchase, the mult-touch device offers a glimpse into the future of computing - the evolution of Natural User Interaction(NUI). Key elements of Natural User Interaction include:

• Direct Manipulation
• Leverage Human Assumptions & Logical Conclusions
• Emotional Association with Play
• Perfect forSocial & Collaborative Tasks

Leveraging the device's Software Development Kit (SDK), innovative designers and creative technologists continue to build applications for the Surface that expand its reach across a multitude of vertical markets, including the retail, hospitality, banking, and healthcare industries. Here are some of the groundbreaking applications in action:

XRay by Stimulant
XRay is a photo app for Surface that mashes up with Apple's iPhone. Put an iPhone on the table, and any image on Surface will be transmitted onto the iPhone screen in real time.

Stimulant: XRay from Stimulant on Vimeo.

In describing the company's XRay application, the team at Stimulant writes:

When Microsoft showed SecondLight at PDC 2008 last year, we were inspired to make something similar work with our current Surface unit. What you see here is a prototype that takes advantage of Surface's object recognition capabilities to recognize the position of one or more iPhones on the Surface, and allows those phones to "see through" the images and reveal a second layer of information. The possibilities here are fairly extensive; what's most interesting to us is the potential for adding a layer of personalized information on top of a public computing experience. This could enable users to capture content and take it with them, or to have the system display a personalized information layer (translated text/larger-print type/private messages) for individual users of a multi-user system.

iPhone was the first mobile platform we dug in to, but we've also got XRay working on Android-based and Windows Mobile-based phones as well.

BMW Product Navigator by Vectorform
The BMW 7-series configurator allows potential customers to build their own BMW on-screen at any participating BMW dealership, and export their design to an external USB drive along with spec sheets, video and photos.



Patient Consultation Interface for Texas Health
In conjunction with Texas Health Resources, Infusion built a demo app that shows how a digital health care system could be streamlined using Surface for patient consultations. Doctors could use surface to explain procedures and anatomy, learn about drugs and grab patient info from RFID-enabled HMO cards.

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Gas Station Digital Signage: Opportunities and Potential Pitfalls

I have always been an ardent supporter of gas station digital signage networks. I'm definitely one of those people who find it mind numbingly boring to pump gas. As a card carrying member of the connected generation, I welcome gas station networks as platforms for engaging content, local news, weather, advertising, etc.

The caveat, of course, is that gas station network providers must not use the outlet to attack consumers with a barrage of advertisements. While some argue that pump top digital screens are just another example of media companies attempting to litter every facet of our lives with advertising, especially those times and places in which it is unavoidable, I find these critics have a short-sighted view of the medium. These are the same journalists and media pundits who think every place-based media network is nothing more than visual clutter; an example of our society's uber capitalistic tilt to make money by taking advantage of consumers (see this Wall Street Journal article for insights into one such reporter's hatred of digital signage).

It's easy to see how gas station digital signage can be exploited (And I've experienced such...see below), but it's not in a network operator's best interest to forgo relevant and engaging content for the sake of trying to maximize revenue by bludgeoning consumers with advertisements. As we all know, networks that only play ads are doomed to fail. The issue, however, is that these properties impact people's views toward the entire digital signage industry. Just because you can place an endless loop of ads in front of a person that can't avoid them, doesn't mean that you ever should. It's the stickiness and relevancy of the content on these networks that contribute to the medium's ability to effectively reach and connect with consumers.

Many of my experiences with pump top digital signage have been positive in terms of finding the content loop a welcome respite from the monotonous task of pumping gas. Most recently, however, I came in contact with a gas station digital signage network that made me wish I had chosen to fill up my car at another station. The experience gave me a headache.

When I first got out of my car, I found that the volume made it difficult to hear everything that was playing on the screen. Little did I know that this was a blessing in disguise. The content mix was dreadful. The spot that ran the most - five times during my fill up - was a promotional video touting the benefits of advertising on the gas station network itself. What made this even worse was that I had already been forced to look at a vertical "Advertise Here" banner that took up a quarter of the screen during every video. The second most frequently run spot was for the company's technical partner whose brand name was already prominent on the pump top hardware.

From the look of things the network didn't have a single paid advertiser. Most of the other spots were public service announcements, primarily from the Ad Council. The non-advertising supplementary content was weak at best. This included quotes from rock stars, a Google map, and a 15-second segment on retro fashion. If not for my curiosity, which begged whether or not the content could get any worse, I would have sought refuge inside my vehicle. It was really that bad. The content loop didn't even include any promos for items such as hot dogs, soda, or coffee sold in the station's convenience store. How this opportunity to drive traffic into the store (and assist the network's location partner in increasing revenue) could be missed is beyond me. Every gas station network should include c-store promotions.

In celebration of USA Today turning twenty-five in September 2007, the newspaper published a number of "Top 25" lists; one of which was the "Top 25 Life-Changing Inventions of the Last 25 Years." While inventions like cellphones, laptops, and DVDs resided at the top of the list, there was one technology whose introduction forever changed the gas station experience. That technological advancement was the ability to "Pay at the Pump."

The ability to pay at the pump has undoubtedly made the operation of purchasing gas easier and more efficient. The introduction of the technology, however, has had a significant downward impact on gas stations' retail sales. Without the need to walk to the counter and/or small convenience store that accompany most gas stations in order to pay for one's transaction, "pay at the pump" functionality has effectively eroded the sale of food items and impulses purchases within these locations.

Pump top digital signage networks give gas stations the ability to promote their retail offerings, thus helping to draw consumers into their stores. Furthermore, since c-store promos can be targeted by day-part, this means that a network's station partners can most effectively push their full range of food and beverage items - from coffee in the morning to frozen drinks in the warm afternoon.

Gas station digital signage can make the experience of filling up much more enjoyable, but it also has the potential to make the task less tolerable (my ears were bleeding!). It's up to the network operator to ensure that consumers derive value from the programming, whether that be in the form of entertainment, information, or something else. The last thing any gas station wants is for people to go elsewhere because it's pump top digital signage makes the customer experience worse.

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2D Barcodes and Digital Signage - Part II

As a result of the enormous revenue that could come out of the 2D barcode sector in the United States, there are many companies focused on unlocking this market. Scanbuy, one of the world's largest providers of 2D code technology, has made headway in translating overseas success to the U.S. Scanbuy' s ScanLife mobile application can read all major 2D barcode formats, including the company's proprietary EZcodes.



While a number of companies are attempting to grab a major piece of this emerging technology, Scanbuy believe its EZcodes offer a number of advantages over datamatrix and QR Codes:

- Reach: EZcodes can be read by the ScanLife reader which is available to around 3 times more phones than any other 2D barcode application.

- Size: The size of an EZcode does not increase based on the information which it is linked to, while other formats are directly proportional to the amount of data delivered.

-Density: EZcodes are simpler in density which means they can be read by more phones, more easily, and with higher accuracy.

Additionally, Scanbuy recently announced that it will publish the specifications for EZcode encoding and decoding to give software developers, campaign managers and code publishers worldwide the ability to utilize EZcodes, which have quickly become one of the dominant mobile barcode formats worldwide. This strategic initiative is focused on making EZcodes the global standard for mobile barcode technology. Marketers and media providers have been using the ScanLife Code Management Platform to easily create and track 2D barcode campaigns. Non-business users can also create their own codes for free which link to their social networking sites or contact information.

“Because EZcodes have quickly become a major force in the growth of mobile marketing, we believe it is now time to make this technology an open standard that everyone can use and benefit from,” said Jonathan Bulkeley, Chief Executive Officer of Scanbuy. “Scanbuy has always worked to grow and develop the worldwide 2D barcode ecosystem and today’s announcement shows our commitment to creating a vibrant and open global marketplace.”

Supporting its drive to make 2D barcode technology omnipresent across media platforms, ScanBuy has secured partnerships with LG Electronics, Nokia, Sony, and Samsung that sees its ScanLife application pre-installed on camera phones from the manufacturers in various markets. Scanlife is compatible with every major mobile operating system, with applications for the iPhone, Blackberry, and Android platforms.

Scanbuy was recognized with the award for "Best Integration with Mobile" at MediaPost's recent Digital Out-of-Home Media Awards. The campaign with Citysearch and Discovery Communications connected people with immediate access to restaurant reviews, weather updates, and landmark audio tours via 2D barcodes placed on bus shelters, kiosks, and other forms of outdoor media. Citysearch placed EZcodes at hundreds of restaurants which linked directly to their specific mobile site so potential customers could see the latest reviews of that specific location.

Similar to how Citysearch leveraged the technology in its award-winning campaign, it's easy to imagine the extent to which a digital signage network could use 2D barcodes to assist tourists and consumers in learning more about attractions and local businesses. I can see the technology solution being used across a variety of networks. For example, a network owner could utilize 2D barcodes to deliver coupons, product reviews, mobile tickets, videos, etc. "There's great engagement," says Mark Lobel, partner at PricewaterhouseCoopers.

While amost every other 2D barcode solution on the market requires a code reader application and a Web-enabled phone, JagTag, a Massachusetts-based startup, offers the opportunity for every person with a camera phone to interact with tagged content. Anyone using a Verizon or AT&T camera phone with text messaging can access the content embedded within one of the company's tags. You take a photo of a tag, then send it to 524824. If you have an iPhone, you e-mail the photo to iphone@jagtag.net. In the reply, you'll get a picture message that may contain an image, video or audio.

"Today 2D barcodes are a micromedium," says Jagtag CEO Dudley Fitzpatrick . "But advertisers really want this, and when a lot of brands can reach a lot of people, it will become a mass medium."

In my opinoin, there's no doubt that 2D codes will have a major impact on the U.S. media and advertising industries. The only question is when. I think there will be a place in the market for Scanbuy and Jagtag. And, once web-enabled phones hit a certain saturation point, JagTag will have to supplement its text solution with one that's application-based. Stakeholders in the digital signage industry would be well-served in experimenting with 2D barcodes sooner rather than later. Digital Signage affords the opportunity to dynamically deliver 2D barcodes that can be created and inserted into a playlist on the fly.

Jagtag CEO Dudley Fitzpatrick envisions a world where 2D barcodes turn up on every imaginable surface. "It's a crazy idea that every object in the world can deliver on-demand digital video to any camera phone," says Fitzpatrick.

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2D Barcodes and Digital Signage - Part I

A few months ago I gave my thoughts on Adcentricity's partnership with Impact Mobile. When first writing the post I ended up off on a tangent discussing 2D barcodes - the technology's present state and future possibilities, as well as how it could be integrated with digital signage. I theorized that Adcentricity's partnership with Impact Mobile would lead to 2D barcodes being used in digital signage at an increased rate. The foundation of this theory was born from Impact Mobile's tie up with Scanbuy, one of the largest providers of 2D barcode technology in the world.

So as not to confuse the issue I decided to make my initial post on Adcentricity and Impact more concise and save the 2D barcode discussion for later. Well here we are.

There are a number of companies who are racing to bridge the physical and digital worlds through 2D codes - matrix-like patterns that can hold much more data than the ubiquitous striped barcodes. 2D Codes (QR codes are one of the most common types) storing addresses, unique calls-to-action, and URLs may appear in magazines, on signs, buses, business cards or just about any object that users might need information about. Users with a camera phone equipped with the correct reader software can scan the image of a 2D Code, causing the phone's browser to launch and redirect to the programmed URL. 2D codes can also trigger the transmission of an SMS or MMS response, a phone call, loyalty coupon, and contact information.

2D Barcodes enable brands, retailers, media outlets, etc. to push digital content to handsets at the moment a person is most interested in a certain topic. These data-heavy content tags act as gateways to a more personalized consumer experience. There are countless ways in which the technology can be used. 2D barcodes can connect people with geo-based reviews and tours (Citysearch), green ticketing initiatives, brand promotions, product-specific wikis, exclusive media content, etc. 2D barcodes allow consumers to access dynamic content anywhere at anytime.


Oppportunities abound for linking 2D barcodes and digital signage. A few companies - Snappr and Creative Search Media have been the most active thus far - have emerged to capture this market, but the playing field is wide open for a savvy mobile company to become the 2D code solution of choice for the digital signage industry. In line with the targeting opportunities digital signage presents, 2D barcodes offer a dynamic media channel from which to extend consumer relationships, distribute content, and garner campaign metrics.

Even though 2D barcodes have yet to really catch on in the US , this situation could be remedied in a very short time. Brands like Nike, Sears, and Microsoft have integrated 2D codes into multi-platform media campaigns, but the technology is still very far from mainstream acceptance in the United States. The bottleneck to 2D barcode adoption is the required software that must be installed on a phone before it can used to read the unique codes. Since the burden of downloading the application rests with each phone user, it is a major barrier to broad adoption. QR codes are widespread in Japan because manufacturers pre-load phones with barcode reader software. QR readers are pre-installed on about 70% of all phones in Japan.

Digital signage could prove influential in increasing 2D barcode adoption. While other media platforms are limited in how they present mobile marketing instructions, digital signage has expansive visual capabilities, in addition to offering companies the ability to update marketing messages and creative elements on the fly (more quickly and efficiently determine which advertisement generates the greatest response).

To access "2D Barcodes and Digital Signage - Part II" click here.

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USPS Takes Augmented Reality to Another Level

Augmented reality has made its way into digital signage courtesy of technology companies Total Immersion and Metaio. From visualizing a completed Lego set (via Metaio) to bringing a baseball card to life (Total Immersion), augmented reality has bubbled up to the mainstream.

While detractors claim the technology is purely a gimmick and predict that it will go the way of its predecessor virtual reality, many (yours truly included) see a number of practical uses for the technology. As this application for USPS demonstrates, when utilized for more than visual fireworks, augmented reality rises to the level of a truly game-changing innovation.

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Bed, Bath, and Digital Signage Opportunity

Walking into Bed, Bath, and Beyond (BBBY) this weekend, the first thing I noticed was the retailer's desperate need for digital signage. Products litter every nook and cranny of the store. Bed linens, fans, kitchen appliances, and every other item you could imagine putting in your home, are stacked as far as the eye can see. When did Bed, Bath, and Beyond become the sanctuary for the entire "As Seen on TV" product line?

As I moved through the store, I came in contact with a number of product displays that included 13" CRT monitors. The TV's could barely fit on their stands. Each display area reminded me of my parent's kitchen circa 1990. (Perhaps BBBY got a deal on the TVs when "Crazy Eddie" electronics stores went out of business) The product videos airing on the TV's were blurry at best. The bulky monitors which were placed in each zone of the store made the environment feel outdated and behind the times.

The marketing strategy at the foundation of Bed, Bath, and Beyond's use of in-store video to promote specialized products can't be faulted, but the Company's means of doing so most certainly can. In using old technology, the company actually detracted from its environment rather than improving it. Instead of customizing the video content to best connect with visitors, store management merely decided to press play on product infomercials. Add that to the outdated television sets, and you have a recipe for disaster.

When thinking about the many products and store categories that exist within a Bed, Bath, and Beyond outlet it's very easy to see the amazing benefits the Company would gain in installing digital signage. All a digital signage vendor would do to sell-in such a system would be to build off of the organization's current use of in-store video and explain how modernizing the technology would have a major impact on the company's bottom line.

With almost 900 Bed, Bath, and Beyond Stores across the United States, the Company offers a major sales opportunity for digital signage solution providers. With a diverse range of products and stores ranging in size from 20,000 to 50,000 square feet, a digital signage network within BBBY could prove very profitable to the company. Similar to existing large-scale grocery and retail networks, BBBY could generate supplemental revenue by selling network advertising space to its expansive portfolio of brand partners.

My recommendation for BBBY would be to install a system similar to Walmart's Smart Network. I would deliver unique content to each distinct zone of the store, utilizing eye-level shelf displays to promote individual brands and products. Just as in Walmart stores, I would limit the number of large screen displays, and instead focus on “Endcap Screens” that would advertise the items displayed on key endcaps throughout the store.

So now the only question that remains is which digital signage company is going to jump on this opportunity.

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Thoughts on Meineke's Partnership with AutoNet TV

AutoNet TV added another feather to its cap this week. AutoNet TV has signed an agreement with Meineke to deliver its waiting room digital signage network to Meineke's 850 corporate owned and franchise car care centers. With a distribution channel of over 6,000 service centers, the Company has already established itslef as the dominant digital signage network operator in the automotive sector.

In signing on Meineke, AutoNet has added another significant auto industry partner (with major brand recognition) and further extended its market leadership. Having just recently announced an advertising sales partnership with the publisher of Car and Driver and Road & Track magazines, the addition of Meineke centers to its portfolio of locations will serve AutoNet well as it looks to significantly increase its advertising revenue.

The uncertainty facing the American automobile industry is not lost on AutoNet's management team. The economic downturn has put pressure on the Company, but AutoNet remains optimistic about its growth prospects. By continuing to expand its network footprint and forging long-term strategic partnerships, I believe the Company is doing what's necessary to emerge from the recession as a stronger organization.

Rather than tighten its operations, AutoNet TV has been very active over the past year. The Company has brought on additional content partners, expanded its multimedia and web offerings, strengthened its advertising sales division, and engaged in a Nielsen audience reasearch study. The results of the study strongly support the network's effectiveness. Of those surveyed, 84% agreed that "AutoNet TV is a good thing for service centers to offer their customers."

As AutoNet TV enters the second half of the year, its likely that some of the service centers in which its network airs will close (if they haven't already) as result of the economic downturn. While this may put some strain on AutoNet's audience figures, the Company will not bear extraneous service costs in pulling out networked digital signage equipment from these locations. It's ironic that because AutoNet TV still runs as a sneaker net (programming distributed by DVD) the closure of these service centers will have less of an impact on the Company's bottom line.

It was back in March 2008 that AutoNet announced it would be working with digital signage provider 1-2-1 View to transition some of its locations to a web-based content distribution system. This, of course, would provide the network and its advertisers with greater efficiency, flexibility, and targeting power. Since the initial announcement, however, there hasn't been any additional news on the pilot and its expansion beyond the first 150 target locations.

I think the management team at AutoNet TV would agree that transitioning from a DVD-based distribution system to a fully networked digital signage solution is necessary as the Company moves forward. I would say that this process needs to be greatly accelerated for the company to protect its position in the industry. Without a robust web-based digital signage network, the Company is unable to provide advertisers with audited playback reports, gauge the technical health of its locations, and, most importantly, take advantage of the diverse targeting and advertising benefits such systems provide.

I would be surprised if AutoNet TV had the necessary capital right now to install networked digital signage equipment in even a quarter of its service centers (this would amount to 1,500 locations and require a major chunk of change to do so). What AutoNet TV seemingly needs is working capital. The Company is probably in the process of seeking venture capital or other forms of private funding. These sources of investment have been difficult to come by during the recession.

With indications that the economy is beginning to turn around, there's a chance AutoNet TV could secure funding by the close of the year. As long as the network isn't carrying a significant amount of debt, AutoNet TV is a very promising investment. Considering the Company just signed an agreement with Meineke, has over 6,000 locations in its network, offers top notch programming through a number of content providers, and counts the publisher of Car and Driver and Road & Track magazines as an advertising sales partner, AutoNet TV is in a position to achieve great success.

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Is Inwindow Outdoor a Potential Acquisition Target?

As the unquestioned market leader in the field of storefront advertising, Inwindow Outdoor has grown into a major player in the out-of-home media sector. Since the company's founding in 2002 by entrepreneur Steve Birnhak, Inwindow has experienced exponential growth. In securing partnerships with major commercial real estate developers across the country and leveraging groundbreaking digital technologies, the Company has succeeded in elevating its medium to national prominence.

Inwindow introduced storescapes to the media community and has continued to build off of that pioneering spirit. From large-format static displays to interactive streetlevel digital billboards, the Company has built an enviable portfolio of client work. Having produced eye-popping installations for national brands from every major market category - companies such as Sony, Intel, BMW, MTV (and many more...) - Inwindow has grown into a full-fledged media brand.

While companies like Windowgain, Pearl Media, Monster Media, and Motomedia have emerged to take advantage of the widespread opportunities that the medium presents (every vacant storefront is a potential advertising display), Inwindow Outdoor has used market savvy, exclusive partnerships, and technical prowess to build a wall around its position as the undeniable leader of the sector. With the launch of its first storescape in a mall environment, the Company refers to the product as Mallways, and the industry recognition the Company received for its amazing Coraline streetlevel billboard, Inwindow is poised to make 2009 its most successful year ever.

Inwindow's high-level of growth and success leads one to think about what the company's future will look like. Will Inwindow continue as an independent entity, spreading the reach of the medium it created? Or will the Company get acquired by a larger organization? The Company could also choose to take on private investment and grow through strategic acquisitions.

Even though the Company doesn't appear to have permanent real estate assets, as its portfolio of locations rotates according to which of its real estate partners' properties are vacant, Inwindow has advertising agreements with a large number of commercial real estate companies - including three of the largest mall developers in the country. The brand equity the Company has built over the years is invaluable. With a top-notch management team and staff, Inwindow offers a potential investor or acquirer the opportunity to buy into a market leading company in a sector experiencing unprecedented growth.

With the advancement of digital window displays and rear-projection technology, over the course of the next few years retailers are going to increasingly install digital signage in their storefronts. Having amassed technical and creative expertise in this field, Inwindow could potentially establish a subsidiary - "Inwindow Retail" - to take advantage of this market opportunity. With its array of engaging, eye-popping, and groundbreaking storefront installations, Inwindow could garner significant revenue in expanding its business operations to live retailers. For retailers that house a mix of brands, Inwindow could be both a technical and media sales partner.

No matter what the Company chooses to do, the future is bright for Inwindow Outdoor.

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Layers and Layers of Content

I watched the move Defiance last night, and it was fantastic. The film was riveting, even more so because it was based on a true story. While watching the special features included on the DVD, I thought about the role of such complementary content and its place in the media ecosystem.

The special features included cast/director commentary, insights from the children of the Bielski Brothers, and an introspective look at the people and places at the heart of story. These pieces of bonus material played an integral part of my movie experience. These featurettes and interviews allowed me to explore layers of the story that existed beyond what was captured in the film. I gained a glimpse into a world that grew out of the epic story, following paths that emerged as more details of the movie and its true-life characters were revealed. Such an opportunity to see beyond the metaphorical curtain, enhanced my connection to the story.

While special features included on a DVD are nothing new, the idea of extending one's experience with content beyond a single interaction is growing with the emergence of new technologies. Consumers' ability to control content and the way in which it is consumed calls for richer, more dynamic experiences. Watching the special features included with the movie last night, immediately made me think about the changes facing the media and advertising industries, as well as the opportunities that these adaptations afford.

When DVDs first hit the market the expanded content included on the discs was a key selling point and differentiator from previous technologies. The ability to turn on or off a director's commentary during a movie, watch a film's deleted scenes, and to see what it was like to work on the film's set were just some of the bonus features included on most DVDs.

As TV's have become ever more advanced - HD, LCD, Plasma, 1080p - and DVDs transitioned to Blu-Ray discs, much of the talk has centered around a movie's picture quality, sound, and clarity. But, what is really special - a feature that symbolizes the movement toward more dynamic content consumption - are the images, scenes, and featurettes that were never previously included with movies. The technology didn't allow it. Now, it is something we expect.

The expectation of richer and deeper content experiences is the driving force behind the transformation of traditional media. Just as the VHS tape gave way to the DVD, a sleeker technology with more robust data storage, thus affording movie studios the ability to include bonus features, TV is giving way to web video. Newspapers are transitioning from tangible form to one that is fluid, expanding throughout the digital realm and moving between devices.

The future of content is in the layers of media that exist beyond a person's original frame of reference. Rather than starting from the same place, we can now choose to uncover the hidden elements within a story by examining it from different angles. The layers one person chooses to pull away may not be the same for another.
And, that's what makes the future of media so interesting.

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Apple's Digital App Store Wall

The biggest news coming out of Apple's WWDC event is of course the launch of the iPhone 3GS. As I was reading about the new iPhone, I came across an interesting digital signage installation at the event, courtesy of Apple.

The expansive video wall visualizes near real-time (5 min. lag) app store activity. The array of digital displays showcases the activity of 20,000 popular apps currently on the store. Every time a customer downloads an app, its icon lights up (5 min. delay).



The hyperwall was built using the latest in Apple technology. It's powered by 20 Mac Pro towers running Mac OS x Snow Leopard. It was programmed in Quartz Composer using new OpenCL APIs. And it's shown on 20 synchronized 30-inch Apple Cinema HD Displays.

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Pizza Hut Launches Hut TV (What about The Bite Network?)

There's been a lot of digital signage activity in the QSR sector as of late. I recently wrote about the rapid expansion of IndoorDIRECT's BITE Network. The BITE Network, which is already in over 1,000 locations, is installed across top QSR chains, including Denny's, Arby's, and Hardee's. Given that IndoorDIRECT installs its network at no cost to its restaurant partners, offering a free revenue sharing opportunity, you would expect many more QSR chains to join the network over the next year.

When you couple IndoorDIRECT's free network offering (and the opportunity restaurant partners gain in promoting their menu items) with the fact that the company has over $20 million in venture capital funding, an experienced management team, and a top-tier content platform, it's difficult to see why QSRs would choose to invest capital in building their own networks rather than going with IndoorDIRECT. As IndoorDIRECT expands its footprint, the BITE Network is likely to gain significant brand equity. The BITE Network has the potential to be ultimately looked at as the premier restaurant digital television network.

In breaking down the widespread benefits IndoorDIRECT brings to its location partners, I question Pizza Hut's decision to launch its own in-store network, Hut TV. In order to showcase the growth of its menu beyond pizza, the company is aiming to rebrand its locations as "The Hut." Hut TV, the company's in-store digital telvision concept, is being touted as an integral component to the company's rebranding effort.

"We’re in the middle of the transformation of the Pizza Hut brand, both in terms of how our store looks and creating a different consumer experience we’re calling The Hut,” said Bob Kraut, vp of marketing for Pizza Hut. “Hut TV is a way to engage and entertain customers and make those who own our stores feel better about Pizza Hut.”

Pizza Hut is piloting Hut TV in 20 stores in Jacksonville, Fla. and 4 stores in Dallas, TX. This is a tiny pilot. There are 7,500 Pizza Hut locations across the US, which means the pilot is being run with a sample size equal to 0.3% of the chain's national footprint. With 80% of Pizza Hut stores owned by franchisees, I find it hard to believe that Hut TV will expand much beyond the company's corporate locations (if it even gets out of the pilot phase). Franchisees are encouraged to use marketing resources made available to them and participate in system promotions, but they have the final say in whether or not they will install Hut TV.

If franchisees have the option of installing the BITE Network at no cost to them versus funding the deployment of Hut TV, I think they would choose to go with BITE. Especially, when you factor in the advertising revenue share opportunities afforded to BITE partners (At this time, Pizza Hut is not selling ad space on Hut TV).

If I worked in Pizza Hut's corporate marketing department, I would pilot IndoorDIRECT's BITE Network in 20 franchise locations, in tandem with the Hut TV test. I think it's safe to assume that IndoorDIRECT would cover the costs of the pilot. Pizza Hut would be able to analyze the installation and content costs of Hut TV versus a third-party funded solution, gauge consumer engagement and interest levels between Hut TV and BITE, and ultimately formulate a complete cost benefit analysis of going with one network over the other.

In looking beyond the development of an in-house network, Pizza Hut would be acting in the best interest of its franchisees. The multi-pronged pilot would allow Pizza Hut to determine the best digital signage solution for the company.

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Ode to The Year The Media Died...

I promise you that this video (set to the tune of "American Pie") which tells the story of the death of the media industry is worth 9 minutes of your time.

(I was a little skeptical too at first. A 9 minute video? But, it works from start to finish)

I think we can all agree that the media industry is not dead. It's down, but it's not out. It just will never be as it once was (which is a good thing).

We have the technology. We have the capability. We will rebuild it better than it was before. BETTER. STRONGER. FASTER.

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Event Spotlight: Strategy Institute's Digital Signage Technology Summit

My school of thought is the more a person can learn about the inner workings of a technology or media solution the better.

Understanding the nuts and bolts at the heart of digital signage, and the critical strategies for ensuring a successful network deployment, are a must for anyone who wants to work in this industry.

Even if your company or media agency has a technology partner (or is planning on utilizing a fully-managed solution), a strong foundation of technical knowledge fosters deeper understanding of every aspect of the digital signage industry (from media placement to content creation). For example, this education will improve your relationships with technology partners, allow you to better diagnose problems before they happen, and will ease your concerns when technical issues arise.

Since we've established the importance of technical knowledge as it pertains to the digital signage industry, I point you to an upcoming conference that is sure to increase your grasp of digital signage technology:

Strategy Institute's Digital Signage Technology Summit

Close to a dozen end user case studies will be featured at the 2nd Annual Digital Signage Technology Summit, to be held on June 16 and 17, 2009 at the Orange County Convention Center in Orlando.

The benefits of digital signage as an affordable and effective way to communicate in real-time have been realized by many industries and organizations.

“For me, digital signage is all about information exchange and enhancing the experience,” said Michael Kilgore, vice president of marketing at the Tampa Bay Performing Arts Center. “We’re able to provide information and entertainment as people approach our theaters.”

The center is leveraging the sight and sound capabilities of digital signage to create a rich and immersive experience for show attendees, which in addition to programming, “can be a competitive advantage,” said Kilgore who is speaking at the Summit. Other end user case studies
include:

• Newark Beth Israel Medical Center
• Lockheed Martin Aeronautics
• Jyske Bank (Denmark)
• Georgia Aquarium
• SAIT Polytechnic (Calgary, Canada)
• The University of Texas at El Paso
• Art Institutes & South University
• Newseum
• Central Florida Community College
• Taft Stettinius & Hollister, LLP

The event is being held as part of the InfoComm line up and is the second year of partnership between Strategy Institute and the worldwide leader in audio-visual exhibitions.

“InfoComm looks forward to partnering again with the Strategy Institute, and promoting the digital signage education that is essential to understanding this vital segment of the AV industry,” said Randal A. Lemke, Ph.D., Executive Director, InfoComm International.

"Topics to be covered include the different applications of digital signage, technology selection, implementation, management and more” said Yashod Bhardwaj, Project Manager at Strategy Institute. He indicated that delegate attendees will include The World Bank, CBCI Telecom, Cornell University, Laser Light Engines, Modern Age Plastics, South East Community College, Social Security TV, Sypro Optics, Wayne State University, SmithSonian Institution, Beckman Consulting, Danville Area Community College, University of Toronto, Indico and many other public and private institutions who wish to learn more about the technology and are really motivated and ready to invest in Digital Signage.

“This event is a great place to meet others in the digital signage field, giving all of us participants the opportunity to share expertise, knowledge and new ideas,” said Jorge Palafox, who attended the event last year and is returning as a speaker. He will be sharing his insights as the digital signage coordinator at SAIT Polytechnic, a higher education institution based in Calgary, Canada.

The Summit is a must attend for end users, systems integrators, consultants, and solutions
providers of digital signage.

Contact:
Yashod Bhardwaj
Marketing Project Manager
Strategy Institute
New York Toronto
1-866-298-9343 x239
bhardwaj@strategyinstitute.com
www.strategyinstitute.com

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NCR Imagines Next Generation ATMs and Kiosks

If you were to walk into NCR's "Innovation Center," you would get a glimpse of what may be the future of self-service technology (the video attached below takes you behind the velvet rope). NCR's kiosks and ATMs of the future take advantage of multi-touch interactivity, near field communication, and advanced mobile technology. The company envisions next generation self-service systems with more robust and intuitive user interfaces.

I think some of NCR's conceptual designs are on track. For others, I have my reservations. I fail to see how a Microsoft Surface could ever be used as an ATM. It's a great platform for learning about a financial institution's products and services, but to use the interactive table as an ATM calls a person's safety and the security of his personal information into question. From the example in the video, just about anyone within a ten foot radius of the user could steal his personal information and view his account balances.

The company believes that near field communication, a short-range high frequency wireless communication technology which enables the exchange of data between devices, will be used heavily across self-service systems. NCR envisions "smart posters" with embedded RFID tags as key activation points for consumer transactions.

NCR's vision of the future should probably be deemed the Mobile Phone Era, as the company sees the device becoming a person's ATM card and electronic wallet, unique gateway to technology interactions, and even his hotel room key when he's traveling. While the convenience and efficiency of such a solution is enticing, it makes me think about the many disastrous outcomes that could result from losing or breaking one's cellphone. Maybe there will be a remote destruct button that wipes all of your personal information when a mobile phone is lost or stolen.

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Inwindow Outdoor Delivers Interactive Mallways for the US Navy

Ever since Inwindow Outdoor announced that it had signed partnerships with three of the largest shopping mall developers in the country, I have been waiting to see the Company deploy a major Mallways project. Given the success and accolades the Company has garnered over the last year, I knew that it would only be a matter of time until Inwindow began to leverage its portfolio of mall locations.

"Mallways are a natural extension of our Storescapes because they take the large-scale advertisements we normally do on crowded city streets and bring them into a contained shopping environment that is packed with consumers," said Steve Birnhak, CEO and founder of Inwindow Outdoor.

The Company is poised to capitalize on its tremendous showing at the First Annual MediaPost Digital out-of-home Awards. Inwindow picked up three major awards at the event, including "Best in Show" for its groundbreaking interactive storefront for the animated film "Coraline."

“We’ve set out to change the way advertisers think about out-of-home and are extremely proud to have that effort recognized by MediaPost in such overwhelming fashion,” said Steve Birnhak, CEO and founder of Inwindow Outdoor. “The Coraline campaign was one of the most innovative campaigns we’ve executed and it demonstrated again how deeply interactive an outdoor display can be. We intend to continue to push the envelope and further increase the engaging qualities of our displays.”

With Inwindow Outdoor's continued growth, it, therefore, comes as no surprise that the Company just announced its first digital mall storefront campaign. The project for the United States Navy spans four major malls in the Dallas and Oklahoma City areas, and is the result of a collaboration between Inwindow, advertising agency Campbell-Ewald, and Helios Interactive.

Designed to appeal to both potential recruits and influencers, shoppers are able to browse through snapshots depicting many different facets of Navy life, ranging from humanitarian to special operations missions, and read actual postings from NAVYForMoms.com members.

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The Sky is Falling on the Newspaper Industry

Or that's at least what the media wants you to think. In response to a just released report on the Q1 2009 newspaper advertising sales figures, media outlets are brimming with apocalyptic predictions on the future of the industry. The numbers are ugly. The figures show declining advertising revenue across the board. It's not like industry analysts hadn't been foreseeing such pullbacks, but the numbers are more dismal than almost anyone could have predicted.

It must be noted that our economy has been in one of the worst recessions since the Great Depression. The ominous report, however, still has blown across the world of print today as though it were a category 5 hurricane that instantly materialized off the coast. When you consider that advertising sales numbers fell by 28.3% across the entire industry during the first quarter of 2009, with revenues declining by more than $2.6 billion from the previous year, the strain on newspaper outlets throughout the US becomes ever more palpable. It's evident that newspapers that fail to adapt to changing consumer behavior will be swept away under a sea of red ink.

Key Statistics from the Report

- Real estate classified advertising slumped 45.6% to $336.9 million.
- Automotive classified advertising swooned 43.4% to $332.8 million.
- National advertising slipped 25.9% to $1.1 billion.
- Retail advertising stumbled 23.7% to $3.3 billion.
- Other classified advertising slid 16.5% to $587.7 million.

For those who were attempting to turn a blind eye to the growing pressure facing a once steadfast industry, they are now confronted with the outcome of missed opportunities. The industry's failure to see beyond a traditional media model is why companies that were once seen as media giants are ceding revenue to online advertising networks and more efficient, targeted platforms.

It's not that newspapers will cease to exist because of the dismal advertising sales figures cited in this report. The medium will survive in one way or another, either in an alternate form or as a gateway to a deeper media experience. The jury is still out on what newspapers will look like a decade from now. I, for one, think the newspaper industry's future lies in flexible electronic displays (e-ink) and content that moves seamlessly between devices.

If anything, the fact that these first quarter numbers are much worse than what was estimated, should push newspaper operators to be more aggressive, examine new formats, establish partnerships with online properties that could add value to clients' advertising buys, unshackle content in an attempt to spread the publication's reach, experiment with mobile technologies, empower staff members to approach their positions with an entrepreneurial mindset, expand into complementary sales channels (digital signage , anyone?), and leverage the talents and experience of employees to develop new properties and foster transformative ideas.

Just because Q1's revenue figures for the industry are terrible, doesn't mean that newspaper professionals should raise the white flag. It doesn't have to be a foregone conclusion that advertising sales will continue to decline quarter over quarter. Newspapers should look beyond their newsrooms and physical products and work to reimagine themselves. This report isn't a falling boulder that the industry can't get up from. It's an indication of the heavy lifting that lies ahead.

(Statics via the Newspaper Association of America)

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A Virtual Receptionist and Digital Signage Solution in One

I think we can all attest to coming in contact with receptionists who were less than pleasant. The stereotype of the receptionist who surfs the Web all day, chats on her phone more than answering yours, and treats guests like they're somehow interrupting her day exists for a reason.

A great receptionist can make all of your guests feel at home when they come to see you. At the other end of the spectrum, such an employee is always at risk of offending clients and business prospects. Knowing that a great receptionist is hard to find, a virtual assistant that is available 24/7 is a welcome alternative.

Olivia Greets, a live, 24-hour, avatar-based virtual receptionist allows companies to manage and customize how guests are greeted anytime they enter their lobbies. The solution is a 24 hour global reception service that meets and greets your visitors, provides live coverage of your company's phone lines, and even remotely unlocks office doors.

Existing as both a visitor screening system and digital signage platform, Olivia Greets can be used as a tool for customer service, corporate communication, and branding. When the virtual avatar is not onscreen, the system offers the same benefits and opportunities as any digital signage system. It represents an ideal blend of self-service and place-based advertising technology.

The Olivia Greets system provides customizable and functional solutions for business of any size. The avatar can address FAQ's and make key information instantly available. The system's digital signage component can be used for advertising, or as a means to deliver information to clients and employees.

One caveat of the system, which I was surprised to learn after digging into the company further, is that Olivia Greets is not as automated as you would think. In first reading about the virtual avatar, I assumed that it was using voice recognition to deliver pre-programmed responses. Instead, the avatar is a virtual embodiment of a call center representative. Since the main selling point of Olivia Greets is that it offers a streamlined solution to a live receptionist who may not be representing your company in the best manner, what are then the assurances that the call center employee will treat my guests with respect? At least if the system were automated I would at least know that the avatar would not provide a guest with incorrect information or a curt response.

Since the system is really just an in-office extension of a virtual telephone service, the Company behind Olivia Greets would likely be best off partnering with an organization that has significant market share in that industry. Even though the majority of companies with automated telephone services don't have physical office space, some of these small and medium businesses do. Whether they are shared offices or destinations that are only occupied a few times a week, such environments could benefit from a complete Olivia Greets solution.

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