Dan Frechtling

Looking Smart: New Gen Digital Signage Raises Performance Bar

February 8, 2012

FROM RETAILWIRE:
Digital signage for retail, at least partially written off with the advent of smartphones and tablet computers, may be back in vogue with a few high tech twists. Do you think "smarter" kiosks and digital signage will have a big impact at retail in the near to medium term?      [more...]

The Macy's example shows how kiosks can supplement store associates. HSN illustrates the branding and awareness benefits of digital out-of-home. iSample replaces higher cost channels for sampling.

All are steps in the right direction, but they're more about reducing costs. The revenue models are vague.

To that point, the use of digital signage in automated retail puts a revenue model to work because actual goods are sold. Digital media can both draw more traffic to kiosks, as in the case of Coinstar and Best Buy kiosks, or provide more personalized recommendations, as Blockbuster Express (sold to Redbox for $100MM) was developing.

I believe the highest, measurable ROI will come from automated retail applications like these that not only reduce overhead costs of retail but also convert more shoppers on the spot. They also provide a "quick trip" alternative to e-commerce, as the success of Redbox in gaining Netflix customers has demonstrated.