Based on a RetailWire poll back in January, digital signage in stores had three key measures it needed to address to prove its worth. Number one was "quantifying the customer experience" (42 percent) followed by "advertising sales" (27 percent) and "labor cost savings" (15 percent).
Digital signage, including sophisticated in-store television networks, have an image problem today because the past hype has failed to deliver the types of results promised by those pushing the technology.
Bob Wolinksky, CEO of Automated Media Services (AMS), said the past is an issue his company and others have to deal with when it comes to selling in-store television.
"The taint is so devastating that it makes it very difficult to engage someone in an open conversation," Mr. Wolinsky told Advertising Age.
The most ambitious in-store television program in the last few years has been the Walmart Smart Network. As Ad Age points out, the retailer brought in a number of partners, including PRN, DS-IQ and Starcom Mediavest Group, to address some of the problems of the past.
Initially, the retailer was looking to have the network operational in all its stores by early 2010, but the rollout has slowed. Today it continues to be rolled out with installations in roughly 1,200 stores.
A Wal-Mart Stores spokesperson told Ad Age that the retailer is "encouraged by increasing advertiser interest" and is looking to refine the content to make it more effective. Among the changes were creating shorter messages, shifting the focus to new products, using Spanish language in some locations, adapting content based on weather conditions and integrating with mobile technology.
Discussion Questions: What do you see as the pros and cons of in-store television networks? What has the industry learned from early implementations? Do you think retailers will make more extensive use of the technology once business picks up?