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FULL-MOTION DIGITAL SIGN ADS BOOST SALES BY 10 PERCENT

By Sascha Brodsky

The writing is on the wall — edgy, bright and electronic. In an age of ad overload, those high-tech digital signs cropping up in shopping centers are proving to be an effective way for retailers and landlords to connect with customers.

Digital signage, which uses full-motion video rather than a static picture “is a dynamic medium capable of attracting consumer attention in a way that almost nothing else can,” said Steven Platt, founder of the Platt Research Institute, a retail advisory group based in Hinsdale, Ill. A recent study found that these high-resolution, computer-operated signs boost sales of the advertised products by about 10 percent, says Platt.

Investment in the medium appears set to explode. Frost & Sullivan, a New York City-based research and consulting firm, says the $148.9 million companies spent on these displays last year will more than triple to about $490 million by 2011.

This increase in the use of digital signage is the result of the plummeting cost of the technology, sources say. Today a three-screen display can cost as little as $5,000, whereas five years ago it might have cost four times that, Platt says.

Retailers are jumping in nose first. Supermarket chain Kroger plans to supply an in-house plasma TV network to its roughly 2,500 stores nationwide over the next year. Albertsons, Best Buy, CompUSA, Dick’s Sporting Goods, Wal-Mart and some Simon Property Group malls are among those with digital systems already in operation.

Kroger’s in-store system will show programs in accordance with the time of day, the weather or other variables, and will allow the company to track the network’s affect on sales.

“We can now coordinate the messages brought to our customers through both in-store radio and television,” said Evan Anthony, Kroger’s corporate vice president of marketing and advertising. “For the first time, we can combine in-store radio and TV to deliver what we call ‘perfect media,’ with multiple channels in each store displaying fun, exciting and relevant content focused exclusively on our customers.”

Simon Brand Ventures, the business-to-consumer arm of Simon Property Group, launched what it called one of the world’s most technologically advanced outdoor digital video systems last year, at Lenox Square Mall, Atlanta, and at Westminster (Calif.) Mall.

Simon’s digital wall signs range in size from 9 feet by 16 feet, to 20 feet by 30 feet and are located at major thoroughfares adjacent to the malls. The network also lets consumers interact with advertisers to receive information and coupons using cell phones.

The possibilities are limited only by the retailers’ imaginations. McDonald’s is placing ads in Foot Locker’s in-store video network. Wal-Mart is upgrading the in-store television network at its 2,600 stores to promote specific products. According to Wal-Mart, the TV operation captures some 130 million viewers every four weeks, making it the fifth-largest U.S. television network after NBC, CBS, ABC and Fox.

Retailers and landlords are not the only ones that see the potential, of course, and major corporations are leading with their billfolds. St. Paul, Minn.-based 3M has acquired MercuryOnline, a well-known digital signage maker, while Stamford, Conn.-based Thomson has bought Premier Retail Networks, of San Francisco, which operates Wal-Mart TV.

“The continuing fragmentation of media is forcing a shift in the traditional marketing paradigm,” said Kevin Westcott, a partner in the media and entertainment practice of Accenture, which produces digital signs.

Part of the appeal of digital signage is its flexibility: A networked digital sign’s message can be changed easily based on its location, the season, the time of day, inventory levels, or special events. At Abercrombie & Fitch, for example, headquarters can control what promotional video is playing at a store across the country at the touch of a button. No one needs to send workers clambering up ladders with paper and glue simultaneously at thousands of stores around the country

The next big thing in digital signs, however, may be a futuristic version of paper. After a trial run in Macy’s department stores, Ann Arbor, Mich.-based Gyricon, an offshoot of office equipment giant Xerox Corp., of Stamford, Conn., is planning a commercial rollout of a document display technology dubbed SmartPaper. The paper-thin, electronics-embedded sheet of plastic uses less energy and is cheaper than current electronic displays.

Sony and other companies are using SmartPaper to produce electronic book-reading devices. Analysts say the technology will start to appear within a year in digital signs at shopping centers.

Iris recognition readers help protect children and adults

Shopping centers will soon host a program that uses Panasonic Iris Recognition Readers to help identify children in case they are ever lost. The Nation’s Missing Children Organization (NMCO) and National Center for Missing Adults, a nonprofit agency providing nationwide assistance to law enforcement and families of missing persons, will host a database of iris patterns called Children’s Identification and Location Database (CHILD) at its headquarters in Phoenix. Unlike fingerprint, voice, facial or photo ID card programs, data obtained using the Panasonic Iris Recognition System will never become obsolete because iris patterns remain the same for life after the age of 1. “No other noninvasive identification system is as precise, easy to use or enduring as iris readers,” said Tim Meyerhoff, business development manager and iris reader subject matter expert for Panasonic Security Systems. “The CHILD Project is the latest example of how cost-effectively and easily iris readers can be implemented to help provide higher levels of safety and security for the general public.”

Panasonic’s BM-ET330 iris reader delivers authentication without the need for any physical contact with the unit. The system’s small size and portable design also make it easy to set up at malls for child identification.

An advantage of iris recognition technology is that it allows one-to-many searches instead of one-to-one searches as with fingerprint systems. In addition, iris image files are much smaller than those for fingerprints — 512 bytes, compared with 1.5 megabytes — making the data easier to store and faster to access.

The National Sheriff’s Association has already endorsed the CHILD Project, with more than 1,100 sheriffs across the U.S. agreeing to participate. This endorsement was prompted by Hampshire County, Mass., Sheriff Robert Garvey, who had been using iris recognition technology to track inmates in the county’s correctional facility. Garvey originated the idea for expanding the use of iris readers to help identify and locate missing children. His office is the first in the U.S. to install the Panasonic BM-ET330 iris readers. The CHILD project team, under the leadership of its president, Sean Mullin, will work with sheriffs’ offices that want to participate in the program by helping to secure funding for the system from state and federal agencies and private foundations.

The tamperproof BM-ET330 iris reader has an error rate of only one per 1.2 million, plus a self-prompting user-guidance system for easy operation. The system features a dual camera system with “one glance” authentication for both eyes. Unlike fingerprint readers, the noninvasive identification and authentication system does not require any physical contact, which also eliminates wear and tear and contamination issues. In addition, the BM-ET330 reader features an embedded processor with real-time operation for added reliability versus PC-driven biometrics devices.

For more information, contact Panasonic Security Systems toll free at (866) PAN-CCTV/(866) 726-2288, or visit www.panasonic.com/security.

Machines clean steps and risers

The Escalator Cleaning Co. offers the Rotomac 330, which the company says is the only machine in the world that cleans both the steps and the risers of escalators simultaneously. Another product, the Duplex 550 first removes dirt from steps and moving walkways during a dry cycle and then converts to a wet cycle to eliminate stains. Call (800) 449-3040 or visit www.cleanescalators.com.

“Top 10” ads a marketing boost

Adspace Networks has launched “Today’s Top 10,” giving mall retailers the opportunity to publicize their hottest deal each week. Sixty-inch plasma screens, placed in common areas, show the top deals in the mall that day. Each “Today’s Top 10” is shown in a 10-second commercial that runs from Thursday to Wednesday each week. Information repeats every six minutes. The advertising runs on the company’s network of screens in 26 malls across the U.S. Visit www.adspacenetworks.com.

Sound system chases birds

Bird-B-Gone has introduced the Bird Chase Super Sonic, a sound system that produces distress and predator sounds of more than 22 types of birds. Bird Chase Super Sonic targets crows, starlings, swallows, gulls, woodpeckers, sparrows, grackles, cormorants and many other birds. The system is waterproof and includes an LCD display panel that shows the status and user setting at all times. The user can select “a target bird” on the display panel, and a distress call will play for two minutes, stop for 10 minutes, then repeat. Each unit comes with one internal speaker but has the connections for four additional speakers. Call (800) 392-6915 or visit www.birdbgone.com.