Making retail digital signage systems ‘intelligent’

Steve Montgomery investigates how the addition of advanced data analytics to retail digital signage systems allows DOOH advertising systems to respond to external events, viewers and retailers marketing objectives.

Billboards and signs are only effective if they present information that is pertinent to the viewer. Content that is irrelevant will be ignored and a valuable opportunity to inform or influence lost. In advertising that can be costly; campaigns will be ineffective and sales performance will suffer.

It has long been the goal of the retail and advertising industries to present promotional material that is entirely applicable to the potential customer; something that is widely recognised as unachievable, and is a long way off with traditional advertising. With digital signage that goal moves closer: displays can incorporate ‘intelligence’ that will automatically reschedule content so that it is more likely to meet the interest and needs of the viewer.

The first generation of digital signage networks offered basic time-of-day scheduling that allowed content to be shown that matched the perceived profile or preference of the passing viewer: promoting breakfast in the morning and late night snacks in the evening on digital menu boards in restaurants for example, or male-oriented advertising around sporting venues on matchdays. Since then, more sophisticated techniques have evolved that monitor external factors, allowing far greater levels of granularity in selecting and presenting content that is appropriate to the time and place as well as the viewer profile.

Linking displays to POS systems allows products to be promoted according to their popularity or to stock levels; whether that is a dish in a restaurant or a range of clothing in a department store. “By incorporating advanced analytics into digital signage, retailers can automatically adjust messaging to highlight the messages that really reflect what potential buyers want or need to see, along with what you want to accomplish. It maximises sales, enables upselling of more profitable items and increases the basket size,” says Damon Crowhurst, sales director, EMEA for Scala. “Combining existing sales performance and store traffic with customer demographics and environmental factors such as weather and economic factors allows an analytics engine to recommend the most effective digital content and distribute it accordingly, to be shown on the right display at the right time. Data is constantly monitored to measure performance in an iterative way for continuous improvement, helping you to optimise your content for best results.”

Interaction with environmental sensors and external databases enables content to be influenced by prevailing conditions. Adverts triggered by hot weather, high pollen count, traffic flow and even the passing of an aircraft have been successfully deployed.

Audience measurement technology can be employed to analyse the number of viewers and their gender and age. Ke-Quang Nguyen-Phuc, coo of Quividi explains the capability of this technology: “Facial detection using video cameras mounted on displays anonymously predicts the age and gender of viewers in front of the screen. This information is then used to select the most appropriate content for those viewers. This information is also collected and sent back to the system operator, along with additional information such as dwell time and the level of attention shown by viewers to help them create new, engaging content and plan campaigns.”

These systems are becoming smarter and more accurate. In order for retailers to compete effectively against online sales they need to create compelling experiences. Nguyen-Phuc continues: “Facial detection can be fused with other data to personalise the shopping experience. The DigitasLBi ‘Inspiration Corridor’ enables customers to register a purchase through its barcode. A body scanner then scans their body and current outfit and makes recommendations based on that information, showing selected items on a full-size video wall for them to choose and try. The location of the items in the shop can also be indicated on their smartphone for easy product selection.” With customer opt-in, this type of interaction can be extended even further: consumers’ personal data and purchasing history can be integrated with the recommendation engine. Items they browse online at home can be geo-located in store and their presence in the store detected through Bluetooth, wi-fi or iBeacon technology. Encouragement to purchase through discount vouchers can also be delivered direct to their smartphones as they embark on their shopping expedition.

The combination of local sensing and intelligent content display can make the digital display even more personal. Thorsten Wilm, manager of software solutions and future technologies for NEC predicts that sensors on display will become more common and be used for a variety of tasks: “With NEC’s leafengine connected to one or more sensors it is possible to test how closely customers approach a display; whether they pick up a sample item near the screen, with the result that the on-screen advert can be changed if necessary. Or to check the gender and age range of a person checking in for a flight against their boarding card, signalling security if there is a mismatch.”

The combination of sensors, powerful algorithms and the versatile digital signage content management system creates an efficient, cost-effective solution that has previously not been available in the digital signage domain. It will advance and evolve in the future as greater levels of analytics and intelligence are added to this technology.

Useful links

NEC Displays – Airport Solutions

Published on: 01/05/2014